What are long term sources of business and their advantages?

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lovelife20133's profile pic

lovelife20133 | (Level 1) Adjunct Educator

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The long term sources of a company is the ultimate determination of the stability of the organization, and how long its doors will stay open within an ever thriving business society.  Although there are too many sources to list, one major source is the name recognition of the company.

First, the name recognition is becoming more of an asset than many companies may realize. For example, when thinking of the heavy hitters in the retail industry, such as Wal-Mart or Amazon, the consumer automatically knows that their money is being spent on a product with quality. But in the event the product is not up to standards, then the customer would receive a free replacement. The customer support is strives to be efficient and friendly,  as well as the guarantee of overall trust and security with consumers personal financial information.

It is very common for many consumers to only shop at a place of business exclusively because of the name alone. More corporations are partnering with these major companies to soak up these benefits for more profits and popularity among consumers.

thanatassa's profile pic

thanatassa | College Teacher | (Level 3) Educator Emeritus

Posted on

While businesses can succeed in the short term by creating buzz or thinking up gimmicks, surviving over the long term requires complex strategies.

First and foremost is building a loyal customer base. No matter what your business, much of your revenue comes from repeat, long term customers with whom you have built some sort of relationship. This is why customer loyalty programs are so important for many business. The advantage to loyal customers is that they provide a steady revenue stream.

The next source of business if branding, or reputation. As you build a distinctive brand, people become increasingly aware of what you have to offer, and are attracted to your business. 

Another major source of business is word of mouth. If your customers are happy with your business, they will talk about it, and that will be a source of more business. Social media strategies are a way to use technology to expand the number of people you reach by word of mouth. 

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