Strategies to increase customer retention
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Customer retention involves activities to reduce customer defections and is important throughout the customer lifecycle. It is crucial because it costs much less to retain existing customers than acquire new ones. Strategies for customer retention include knowing customer behavior, expectations, keeping customers engaged with tools, having a strong CRM system, delivering consistent brand experience, promoting loyalty programs, and prioritizing retention in marketing plans. Effective customer retention also uses both online and offline services to provide recommendations, alerts and bridge the customer experience.
Strategies to increase customer retention
- 1. Strategies to Increase Customer Retention.
- 2. Why do customer leave:-
- 3. What is Customer Retention? Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship.
- 4. How is Customer Retention achieved? Knowing customer behavior. Customer expectation for future use. Keeping customer active with tools. A strong CRM system.
- 5. Keeping Customer active with tools.
- 6. Why is Customer Retention necessary. It costs ten times more to generate a new customer than to maintain an existing one. If you have a small number of customers, losing a few could cripple your company. Even if you have a large number of customers, a small increase in your customer retention rate should dramatically increase your profits. The Loyalty Effect, says that a 5% improvement in customer retention rates will yield between a 25 to 100% increase in profits across a wide range of industries.
- 9. Customer Retention strategy. Delivering service that’s consistent with your value proposition and brand Cross-selling, up-selling and asking for referrals from existing customers Developing programs to increase customer loyalty and decrease turnover Knowing the lifetime value for different segments and using that data to improve your marketing Prioritizing retention as a major focus in your annual marketing plan
- 10. Keeping Customer Active Bridging online and offline services. Returns Gift cards Recommendations. Writer alert.
- 11. CRM model:-
- 12. Customer relationship Management. CRM is a business strategy that commits an organization to be customer centric and intent to deliver profitable value by understanding and anticipating customer needs. CRM consists of sets of enabling technologies that centralize customer data and provides an infrastructure that facilitate the profitable delivery of value.
- 14. Areas to look forward :- Brand reputation Perceived value Customer experience Quality Assurance Loyalty program
- 15. Funnel model:-