What business: Desert shop Address of the business: 110

What is the most important factor in generating Repeat
Purchase in Creamery Twist?

 

 

 

 

Name: Rafaitul Kader

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Candidate
Number: 4412

Centre
Number: 13305

 

Overview
of the Small Local Business ‘Creamery Twist’

Branding

Type of business: Desert shop

Address of the
business: 110 South Street

                                                Romford

                                                RM1 1SS

Imperials Opening
Time:

Monday to Tuesday: 2pm –
9pm

Friday to Sunday: 12(Noon)
– 9pm

 

Telephone: 07438427028

Email: [email protected]

 

Products the Company
sells (Food – Desert)

Creamery Twist has wide
range of menu –

Waffles

Gelato & Sorbet

Sundaes

Crepes

Desserts & Cakes

Shakes & Floats

Smoothies

Drinks

 

 

 

 

Target Market: All age group, Middle Class (income £9,000 – £14,000)

Promotion: Website and instore

Business Ownership

Partnerships

 

Average Cost

£15 for two people
(approx.)

Cash and Cards accepted

 

Business Ownership

Partnerships

 

Location:

 

 

 

 

 

 

 

Company’s
description

“We are a UK based dessert
company in Romford Essex, specializing in authentic gelato ice cream, delicious
waffles, mouth-watering crepes, yummy sundaes, and
coffee. We strive to make the best fresh desserts daily…”

 

Web Rating of the
Shop

 

 

 

Theory of repeat
purchase

Many companies, big and
small, use different ways to try and influence their customers for a repeat purchase. However, this can depend on a
number of things.

 

Repeat purchase is where
consumers regularly purchase a product from the same company. This continued
purchase leads to long-standing decisions
by consumers to stick with them. The needs to provide the same or higher quality
products so the customers return and willing to pay for the products.

 

The benefit of repeat
purchase is that it will give a competitive edge, which will increase the
number of sales the business gets. The profit made from increased sales can be
used to further improve the quality of the service and products, further
increasing the chance of getting repeat purchase. This also ensures long-term
survival of the business.

 

There are many ways to
increase repeat purchase. Having an easy to use website will encourage the
customer to come to the shop because of how easy to check the relevant
information. If a business takes online orders, they chance of getting repeat
purchase will be higher. The customer does not need to go to the shop to
purchase the product, rather they can just do it from home.

 

Also, by providing good
customer service, it will lead to high levels of customer satisfaction.
Satisfied customers are more likely to remain loyal to the company and make a repeat purchase from them in the future.
Customers may be persuaded to spend more with a company that provides them with
good customer service.

 

Finally, by providing
discounts and incentives to customers will attract the customers to purchase
the products as it will catch their eye. This will also increase repeat
purchase because the customers are likely to form a bond with the company due
to the company charging a lower price
than usual.

 

 

I will focus my research
on my company having a ‘good customer service’ and my company ‘By
having sales promotions’ to try to establish which might be the most
important method of generating repeat purchase.

 

 

Methodology

 

In my controlled
assessment, I will investigate two methods to see which method is the most
appropriate to get repeat purchase. I will research by reviewing feedback to
see if there is an opportunity to develop more sales, interview the owner and
compare prices to their competitors. Some different ways I can find out how my
business tries to get repeat purchase is from primary research and secondary
research. All these will give me a clear insight of how the shop can generate
repeat purchase. I will analyse the
findings to try to establish which method
he/she considers to be better or not.

 

I will do ‘an interview’
to find out what the manager considers to be the best way to achieve repeat
purchase. I will ask him/her a number of questions and analyse the findings to try to establish which method he/she considers to be better or not.

 

I will also conduct a
‘small focus group’ of customers and ask them a small number of questions
(questionnaire) to establish what they think is the best method for them and
what makes them come back to the shop as a repeat purchaser. I will then analyse the results.

 

I will also ‘look at the website and promotional
material of my company’ to establish if they have favourable methods or not regarding repeat purchase and customers
coming back through the method of publicity and communication.

 

I will also do ‘observation’
to identify and have a different
perspective of how the workers are trying to attain repeat purchase from the
customers. I will then analyse the
results.

 

Point 1: Providing a good customer service will increase
repeat purchase

 

Research Method 1: Giving the customers a questionnaire when they were
in the shop.

 

1.     How many times have you visited Creamery Twist this
year?

   Never

   Below 5

   5 or above

   10 or above

2.     Why have you decided to come back to Creamery Twist?

   Product

   Price

   Customer satisfaction

   Brand loyalty

 

3.     Are you happy with the quality of products?

   Yes

   No

 

4.     Do you prefer Creamery twist over another Desert shop?

   Yes

   No

 

5.     If yes to Q5, then why do you prefer Creamery Twist?

   Product

   Location

   Price

   Customer Satisfaction

 

6.     What will give Creamery Twist out 10 about the overall
service and Deserts they provide?

(0= Extremely poor, 10=Excellent)

 

Result from the
questionnaire

Appendix 1 – Graphs

Q1: How many times have
you visited Creamery Twist this year?

Never: 5

Below 5: 3

5 or above: 17

10 or above: 3

Q2. Why have you
decided to come back to Creamery Twist?

Product – 13

Price – 7

Customer satisfaction – 7

Brand loyalty – 3

 

For Q1 and Q2, 61% of the
customers came back to the shop more than 5 times. This is because the company
provides high-quality products all the
time. This led them to come back to the shop and purchase the product,
therefore forming a bond with the company securing repeat purchase. 11% of the
customers came back more than 10 or more time to buy products from Creamery
twist. This suggests that Creamery Twist
is targeting age group and trying to continue to
get repeat purchase. Therefore, Creamery Twist is getting more sales and
securing long-term business survival. 23%
of the customer said Customer satisfaction is why they came back. This is lead
to the company getting a good word of mouth, so the customer will attract new
customers.

 

 

Q3. Are you happy with
the quality of products?

Yes – 23

No – 7

 

76% of the customers are
happy with the quality of products. This will lead to a better customer
satisfaction, therefore more customers will come back to the business. The
customers are also more likely to spread how good the business is to their
friend and families, attracting more customers. 24% of the customer said they
weren’t satisfied, which may be because the product they ordered is rushed due
to them having a large menu. This will, therefore, lower their customer service.

 

Q4. Do you prefer
Creamery twist over another Desert shop?

Yes – 20

No – 10

For Q4, 33% of the
customers said they prefer another dessert
shop. This is because Creamery twist is located in an area where there is a lot
of similar shops. This will lead to the
company getting fewer sales than usual
and there will be a risk of the business getting outcompeted by their
competitor. 67% of the customers said they prefer creamery twist than another dessert shop. This is due to the company
providing high-quality products to the
consumers. This will also lead them to come back because the customer will form
a bond with the company and get repeat
purchase.

 

Q5. If yes to Q5, then
why do you prefer Creamery Twist?

 Product – 16

 Location – 7

 Price – 3

 Customer
Satisfaction – 4

The customers prefer
Creamery twist for different reasons. This is because Creamery Twist tries to
be good at every factor in order to get repeat purchase. 54% of the customers
have said they prefer Creamery twist because of their products. This suggests that the company focuses on a variety of the products in order to attract the
customers and therefore they come back to the business to try new products. 23%
of the customer said they prefer the location of the business. This is because
the shop is located near the Brewery and the Liberty where many people come to
buy goods and services and there are a lot of retailers which attracts a variety of customers. The customers are likely
to visit the shopping centre more often
and decides to visit the same retailer if they were satisfied with the service.  Therefore, this will also increase repeat
purchase.  Customer Satisfaction and the
price is worrying for Creamery Twist because they are both below 20%. This suggests that the competitor of creamery twist
provides cheaper products. Therefore, this gives them a unique selling point
which can affect the number of repeat purchase Creamery twist will get. Also,
the customer satisfaction is low for Creamery Twist. This will lead to the
business losing out on getting a repeat
purchase from people that prefer good
service from the workers and the good design of the shop.

 

Q6:
What will give Creamery Twist out 10 about the overall service and Deserts they
provide?

Rating out of
10:

Number of
customers who rated out of 10

1

0

2

0

3

0

4

0

5

0

6

2

7

6

8

9

9

6

10

7

 

I asked the Customers to
rate the business from 1 to 10, and the majority
of the customer rated it 8/10. This is pretty considerable because the company
provides high-quality products to the
customers and the location of the business is suitable for the target market. Not
one customer rated the shop 5 or below which further reinforces how Creamery
twist is providing and trying to maintain good customer service. 7 people rated
the business 10/10 suggest that the target market of creamery twist happy with
what the business provides and this will lead them to come back to the shop
resulting repeat purchase. Overall, the majority
of the customers rated the shop over 7/10 which shows how good the reputation
is for the shop.

 

 

Research method 2: Interview with the manager

Appendix 2 – Interview

This is from Shaun Wright,
the manager of Creamery Twists that I have interviewed.

 

Is there a particular strategy you use at Creams to
ensure repeat purchase?

 We just try out best to make our waffles and
sundaes and try to sell them to the customers at the cheapest of prices.
However, we had customers leaving the shop after seeing the price on the menu.
Therefore, we are trying to have a good customer service to compensate for the
price.

 

Why do you think customers always come back?

I believe it is to do with
the product. We are always getting compliments from customers regarding the waffles
and sundaes they eat and they seem to enjoy it.

 

Is there a particular reason of why you chose to open
Creamery twist in the Romford Shopping Centre?

I came to realise that there was a big gap in the market
in Romford and then I knew it was the perfect place for Creamery Twist.
However, it was a big risk to spend loads on a business knowing that it could
have failed. I also

 

 

How much do you prioritise
giving the customers good customer satisfaction in order to get repeat
purchase?

We try our best to make
the waiters welcome the customers and give them the best service but we have
only a few workers, so at busy times, some customers may walk off from the
shop.

 

Do you think that
the design and clean environment is at a high
standard in Creamery Twist?

Yes, we always try to
maintain the cleanest environment for the safety of our customers and we also
try to implement the different design in
order to attract new customers.

 

Analysis

Creamery Twist is focused
on the quality of the product they sell in order to get repeat purchase. They
put a large amount of effort to perfect
the dishes they serve to the customer in order for the customers to be
satisfied. Therefore, the customers are likely to come back to try the dishes
even if the price is increased and the company will continuously get repeat
purchase.  The company also believes that it is their product which is getting them
the most repeat purchase. This will help the business understand which aspect
to focus on in order to further improve and get more repeat purchase from the
customers.

 

The location was chosen
inside a town centre which favours the customers by letting them easily go
to Creamery Twist after shopping from other retailers. This will lead to new
customers and previous coming back to the shop most of the time they visit
Romford town centre. Therefore, the
company will get more repeat purchase.

 

Creamery Twist also wants to satisfy customers in order to get
repeat purchase. The company is trying to satisfy the customer and have a good
customer service by changing the layout and design of the shop to attract new
customers. They also try to maintain a clean environment so no customer can
walk away from the shop due to hygiene. The company also cares about the customers; they always check the food
they serve to the customer’s health is not affected.

 

Finally, the company lacks
the money to have a more skilled worker
in their shop to improve the customer satisfaction. This will lead to the
business losing out on new customers and getting more repeat purchase.
Therefore, by hiring more workers the company can assure more customers coming
back to the shop and this also improves customer service.

 

Point 2: Having sales promotion can increase repeat purchase.

 

Research method 3: Looking at the company’s website to see if there is
sale promotion

Appendix 3 – Company’s Website

 

Here the business is
promoting their secondary menus, so the customer will be more likely to try new
products. This will lead to customers buying more product than usual and coming
back for more often because of the sales. This will, therefore, increase repeat
purchase.

 

Here, the company is
encouraging the customers to be competitive in order to win and free treat by
going to the shop. The company is trying to attract the customer by using
different methods to business, increasing the chance of getting repeat
purchase. Therefore, the company is more likely to get a customer coming back for more offers and
increase the chance of repeat purchase.

 

However, on the offer page, the website does not have any offers yet.
This will lead to the customer thinking that;
the shop does not have an offer yet and
therefore the company is likely to lose customers and chance of getting repeat
purchase.

 

 

Analysis

The company seemed to
slightly focus on sales promotion in order to get repeat purchase. The sales
promotion is encouraging the new customer
to try a product. This will boost sales in the short term but could also
increase sales in the long term if a customer
like the product and make repeat purchase even when the promotion has ended.
The company is trying to have many sales on a variety
of products in order for the customers to come and make repeat purchase in the
long term.

 

Research Method 4: ‘Observing’ what the customers buy in the shop.

Appendix 4 – Observation

*Pictures were not taken due to privacy concerns*

*The manager did let me observe more than 10 minutes
as it was their busy times*

 3 middle-aged men: chose a variety
of waffles and sundaes especially the ones in sales. He also bought smoothies
and drinks that are in sales. The customer seemed happy when purchasing the
products.

 

 2 families with 4 people: Ordered waffles and sundaes for everyone in the
family and chose to eat inside the shop. They also bought smoothies that were in sales. They also seemed very happy when
purchasing the products.

 

6 groups of teens: They bought smoothies and waffles that were on sale.
They seemed pretty happy when purchasing the products.

 

Analysis

From the observation, I
can see that the customer prefers items that are in sales and they are happy whilst buying the products with sales.
Customers are then most likely to come back to the business and buy the same
product again and also visit the place for more offers. This will lead to a customer coming back to the shop and the
business will get more repeat purchase. The sales also lead people to try new
items on the menu that they may wouldn’t have if it were in sales. Therefore,
they should have sales on the items to
make the customers happy which will lead them to come back to the shop,
increasing the chance of repeat purchase. Creamery Twist seems to target teens
to come to the shop. 7 groups of teens came to the shop whilst I was there
which suggest how Creamery twist’s target market is teens. Teens are more
likely to come back to the shop after school and free time with friends,
increasing repeat purchase.

 

 

Evaluation

Both ‘good customer
service’ and ‘sales promotion’ affects how much a company gets a repeat
purchase from the customers. The good thing about providing better customers
service is that the business will be able to have a positive review from the
customers. The business will be promoted
by the customers that repeat purchase from Creamery Twist by word of mouth.  This will lead to the business getting more
sales and therefore larger profit. Appendix 1 proves how a good customer
service will encourage customers to come back to the shop. However, maintaining
a good customer service is hard and expansive. The needs to hire skilled
workers to produce the highest quality items and maintaining a good design of
the shop can be expensive. Appendix 2 shows how the business is trying to
overcome this difficulty in order to get
more repeat purchase. I think that by providing a good customer service the
business will be able to get repeat purchase however it requires time and
effort to this. Also, it costs a lot to maintain a good design of the shop;
many small businesses may not have a large of money.

 

‘Sales promotion’ allows
the business to attract new customers to the shop, increasing the chance of
getting more sales and repeat purchase. Customers are likely to form a bond
with the shop and choose Creamery Twist over other similar shops. This will
also lead to customers promoting the business to their families and friends by
word of mouth. Therefore, the business will have a number of sales in the shop. However, by lowering the price of the
products can affect the business’s cash flow
and may unable to survive in a long-term

Therefore, Creamery twist
is limiting the number of offers, so the
business can raise enough money to survive and make a profit. Appendix 3 shows that Creamery Twist is only shown 3 offers to the customers. I
believe that this is more than enough attract new customers. In appendix 4, it
shows that customers are buying the products that are on sale however, they are also buying the products that are not
in sales. Therefore, A business like Creamery Twist does not need to put a lot of products on sales to get repeat
purchase.

 

To conclude, I believe
that both ‘Good customer service’ and ‘Sales Promotion’ will increase the
chance of a business getting repeat purchase. However, I think that ‘Sales
Promotion’ has a better chance of getting repeat purchase without the business
having to put extra effort and money to increase the chance of getting repeat
purchase.

 

A recommendation I would
give to the company is to continue to
maintain the clean environment inside the outside the shop in order to attract
the customer to come back to the business. If this goes poorly, the business will the number of customers coming to the shop and resulting the business
to close down.

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