They don’t generate repeat business. The businesses that prosper are focused on building a client base of lifetime customers. Repeat business equals profits. If it costs a business $200 to acquire a customer but that customer only spends $100 when they buy, when does that business show profit? Obviously the second visit is the break even visit and each visit after is profit. Without repeat business, any business is destined to fail. Businesses need to treat their customers in a way that keeps the customers coming back time and time again. Most businesses actually lose money on the first sale or two to any customer. It is only through repeat business that businesses can generate real cash flow and profits. So how do businesses keep customers coming back? Why don’t customers come back to one business while they return over and over again to a different business that sells the same items?
