Their credibility is added to your credibility in the eyes of the new buyer. The referral sale has all the same monetary benefits for the store as the repeat sale. New revenue with no incremental advertising and higher gross margins mean significantly more profitability. No customer satisfaction strategy is complete without a referral program. A complete database of your customers' buying history and preferences permits you to identify key trends and their relationship to your product, service, and media mix.
Recognition is the third benefit of building long term customer relationships.
Unless you can follow some of the same customers from year to year, you will have a very difficult time determining when tastes are changing or more importantly when they will change. Understanding the demographics of your customer base is helpful in some cases when deciding whether there is a shift from homes to apartments or from first homes to trade ups. But, the specifics of the styles and models that will sell, and the insights into why they sell, do not come from demographics. That degree of market recognition only comes from close customer contact, careful record keeping and analysis. Finally, your satisfied customers define the market niche in which you are successful.