'Repeat' Value

“Companies that do a very good job of retaining their customers and developing the value of everybody over time should be awarded a much higher multiple than another business that does not retain their customers as well, even if the historical revenue patterns look exactly the same.”* This makes a case for businesses to focus on retaining their existing customers through innovative practices.

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The digital era helps consumers stay well informed. With news and information being accessed and passed on every fraction of a second, today’s consumers are not only smart but also know exactly what they want and where it is precisely available—this could be through a digital medium or via the usual bricks-and-mortar store. They are hence driven by the power of choice—either seek options online, which requires almost no effort, or the traditional route (visiting a store to purchase or consider the click and-mortar model, which a number of offline and online businesses are adopting). This suggests that the ability to retain a consumer’s interest in any business model is becoming increasingly difficult, considering the numerous choices available. This is invariably supplemented by the need for businesses to redefine their customer acquisition strategy which is equally important.

Being an active fintech player in the area of payments, we generally service the end customers directly or through other businesses. It has become imperative for us to keep the end consumer at the centre in order to develop innovative and effective solutions. While conceptualizing and developing seamless solutions is the basic essence, understanding what potentially influences the buying decision has become another fundamental. Legacy businesses are gradually adapting to this paradigm shift and the progressive nature of an individual’s buying habits. As far as emerging businesses are concerned, only a handful have been successful in deciphering the code. It is visible that success here lies in increasing customer loyalty and retention. This inevitably is followed by customer acquisition, considering consumers are vocal about their choices and experiences.

customer loyalty