CUSTOMER RETENTION
✓ Customer retention is the process of retaining the existing customers. It is obvious that customer retention is more powerful and effective than customer satisfaction.
✓ Customer care can be defined as every activity which occurs within an organisation that ensures that a customer is not only satisfied but also retained.
✓ The following research findings will enable us to understand the real significance of customer retention. The important research findings are:
- Over 60% of an organisation’s future revenue will come from existing customers.
- A 2% increase in customer retention has an equivalent impact upon profitability as a 10% reduction in operating costs.
- Upto 96% of unhappy customers do not infact complain. But they are three times more likely to communicate a bad experience to other customers than a good one.
- 91% of the unhappy customers will never purchase goods and services from you again.
- If you make an effort to remedy customers’ complaints, 82 to 95% of them will stay on with you.
- It costs 5 times as much to attract a new customer as it costs to keep an old one.
Thus the customers retention is more essential than attracting new customers.
✓ Customers retention represents the activities that produce the necessary customers satisfaction that creates customers loyalty.
✓ Customers retention can be improved by obtaining customers feedback and by measuring customer satisfaction.
✓ Customer feedback is obtained from customer satisfaction surveys, focus groups, interviews, and observations. Customers satisfaction should be measured by using the hard measures of cash register receipts, market share, the level of customers retention, and the number of referrals from customers.
✓ Customers retention really moves the customers satisfaction to the next level called customers delight.
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