What is customer retention? Customer retention in marketing means how long you know how to hold on to a customer, or how often you manage to get him back. The difference is in which product you sell. A supermarket with customer retention means how often customers return. A company that concludes contracts with its customers will mean how long a consumer or company remains (on average) a customer before the contract is canceled again.
Customer retention falls within the subject of CRM. The goal is, of course, to retain a customer for as long as possible and to earn as much as possible from a customer. It is often the case that finding a new customer is much more difficult than selling an existing customer.
Retention management refers to policies that a company pursues, to retain customers for longer or, as already stated above, to try to get customers to make repeat purchases as much as possible. However, the term retention management is also widely used in HRM. This refers to the policy of a company aimed at limiting staff turnover as much as possible. In other words how a company can ensure that staff remain satisfied and are less likely to look for another job.
How can you increase customer retention?
With customer retention, customer satisfaction is of course essential. If a customer is satisfied, then he will likely stay and is less likely to leave. It is also easy to sell to someone who has enjoyed doing business with your company in the past. The reverse naturally also applies. If customer satisfaction is low, you can forget that you are selling more or again to this consumer or company. Another important part of customer retention is CRM. By keeping track of your customer data in a structured way and devising other promotions for different types of customers, or customers in different phases, and repeating these promotions with some regularity, customer retention can be greatly increased.
BCG Matrix25-03-20197 mins read
7S model McKinsey29-03-20139 mins read
Socio-cultural factors14-01-20142 mins read
Circular Flow of Income24-03-20195 mins read
Marketing Management Philip Kotler summary18-09-20193 mins read
Ambition Annemarie van Gaal - Book review03-07-20195 mins read
Free business plan format | 15 questions to ask yourself01-07-20192 mins read
Product innovation models04-04-20191 min read