Optimised customer relations

The circular economy offers new business models and opportunities to retain customers. The transition from product delivery to services, leasing models and rental creates a long-term relationship between customer and supplier, because there is more contact during the life of the product. When the supplier remains responsible for the delivered product, interim service, maintenance, repair and good communication can not only result in customer satisfaction but also customer loyalty, which ensures that the customer will buy products again after the contract expires (Kraaijenhagen, Van Oppen & Bocken, 2016).

An example is the company BMA-ergonomics that provides a residual value guarantee for the sale of its office chairs. After the period of use, the office chairs are bought back and collected from the company that bought them. This gives BMA ergonomics the advantage of being able to refurbish and resell the office chairs. Equally important, the buy-back guarantee means that the customer automatically contacts BMA ergonomics again when they have to buy new office chairs (BMA ergonomics, 2019).