Repeat is not recurring

Two firms can bill the same customers the same amount every month, and only one of them actually owns that revenue.

By Steve 5 min read
Abstract bridge artwork for Repeat is not recurring

Ask an owner what proportion of revenue is recurring and the answer usually comes quickly: sixty per cent, eighty, nearly all of it. Look at the underlying arrangements and a good share of that is something else. The customer buys often, has bought for years, and will probably buy again. But nothing continues unless they decide it does. That is repeat business, and it behaves differently from recurring business in ways that only become visible under stress, a change of contact, a procurement review, a due diligence process. The two…

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