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.

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