Repeat Sales

AAA

DEFINITION of 'Repeat Sales'

A purchase made by a consumer that replaces a previous purchase that has been consumed. Repeat sales often play a role in brand loyalty. If a consumer purchases and is happy with a particular brand of automobile, for example, he or she may purchase another car of the same brand when the time comes to replace the vehicle. The car dealership may send regular email messages and offers through the mail to keep the customer's interest in the brand.


Also called a "replacement sale."

BREAKING DOWN 'Repeat Sales'

A key tenet in garnering repeat sales is to take better care of customers than the competition. Many books have been written and websites have been developed to teach salespersons how to secure repeat sales. Either as an individual salesperson relying on commissions and incentives, or as a corporation looking to increase profits, making repeat sales is an important task. Studies show that it costs companies more money to attract new customers than to bring back existing customers because of the costs of advertising and marketing.

RELATED TERMS
  1. Brand Identity

    The components of the brand are created by the business itself, ...
  2. Cult Brand

    A product or service that has an energetic and loyal customer ...
  3. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  4. Brand Awareness

    The likelihood that consumers recognize the existence and availability ...
  5. Marketing

    The activities of a company associated with buying and selling ...
  6. Retail Sales

    An aggregated measure of the sales of retail goods over a stated ...
Related Articles
  1. Entrepreneurship

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  2. Fundamental Analysis

    Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  3. Entrepreneurship

    2 Key Tactics Retailers Use To Increase Sales

    Many companies use versioning and bundling to increase sales. These strategies can offer value to consumers, but they also mean higher costs.
  4. Budgeting

    Extended Warranties: Should You Take The Bait?

    Avoid shelling out for these policies and you could save hundreds of dollars.
  5. Options & Futures

    Car Shopping: New Or Used?

    Don't get taken for a ride. Learn the pros and cons before the salesperson makes a pitch.
  6. Retirement

    Retirement Planning for Entrepreneurs and Small Businesses

    If your business has receiveables, here's a smart way to leverage them to build up your retirement fund fast.
  7. Economics

    Understanding Switching Costs

    Consumers incur switching costs when they receive a monetary or other type of penalty for changing a supplier, brand or product.
  8. Investing Basics

    What's a Price-Taker?

    Price-taker is an economic term describing a market participant who has no effect on overall market activity.
  9. Entrepreneurship

    What Does Bootstrap Mean?

    The term bootstrap refers to launching and building a business with little capital and no funding from outside sources.
  10. Professionals

    Small RIAs: How to Level the Playing Field

    In order to compete with larger firms, small RIAs have to get a little creative. Here are a few ways to kickstart growth.
RELATED FAQS
  1. What is revenue cycle management?

    Revenue cycle management is a big-picture sales, collection and payment processing technique, popular among healthcare providers. ... Read Full Answer >>
  2. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  3. What are the benefits of financial sampling?

    Financial sampling allows auditors to approximate the rate of error within financial statements. For accounting purposes, ... Read Full Answer >>
  4. What are the responsibilities of the principal in a company?

    Principals have different roles depending on the nature of an individual business, but the universal responsibility of a ... Read Full Answer >>
  5. What do hard and soft goods in the retail sector refer to?

    Hard goods and soft goods, also referred to as hardline and softline, designate different types of goods a retailer offers. ... Read Full Answer >>
  6. What are the most common business deductions and expenses for small businesses?

    Among the most common expenses and business deductions for small businesses are the expenses of getting the business started, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  2. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  3. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  4. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  5. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  6. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!