This document discusses customer retention and loyalty. It notes that customer retention aims to reduce customer defections by maintaining relationships from the first contact. Loyal customers buy more and promote the business. High staff turnover makes it difficult to build strong customer relationships and retain customers. Studies show customer retention can impact profits more than other factors. Maintaining 95% retention leads to 15% growth compared to only 5% growth with 85% retention. Superior retention increases profits by spreading acquisition costs over many years of customer lifetime value. Building a Facebook page can increase customer loyalty by 36% through more visits, spending, emotional attachment and psychological loyalty to the brand. Customer referral programs are an active retention strategy.

1. Customer Retention
Marketing Director
Rodolfo Maldonado

2. Customer Retention and
Customer Loyalty
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
organisation has with a
customer and continues
throughout the entire lifetime
of a relationship.
• Customer loyalty is when an
organization receives the
ultimate reward for the way it
interacts with its customers.
Loyal customers buy more,
buy longer and tell more
people - that's true customer
loyalty.

3. customer retention and satisfaction
• A company with a high turnover rate may not be
able to maintain strong personal relationships
with its customers. Even if relationships are
established, the customer may decide to take its
business to a new company when its contact
person leaves.

4. The Truth
• If you're a service business,
you're losing 15 to 20
percent of your customers 20% New
every year. And according to customer
a study in Harvard Business
s
Review, "...customer
defections have a
surprisingly powerful impact
on the bottom line. They can
have more to do with a
service company's profits
than scale, market share,
unit costs, and many other
factors usually associated
85 % Customer
with competitive advantage."
Retention
customer
retention
New
customers
Net
Growth
20%- 15% = 5% Net
Growth

5. Everybody likes pie…
20% New
customer
s
customer
retention
New
customer
s
95 % Customer
Retention
20- 15+ 10 = 15%
Growth
Net

6. 1
•GROWTH is just one of the benefits
that superior customer retention can offer a
company. Increased profits are another. The cost
of acquiring customers and putting them on the
books generally exceeds by several times the
annual cost of serving existing customers. So the
longer customers are kept, the more years over
which the initial cost of acquisition can be
spread.

7. Facebook + Twitter
Building customer Loyalty through facebook.
Here are some numbers to back up the importance of
facebook page:
•
•
•
•
Facebook Pages Can Increase Customer Loyalty by 36%
Made 36 percent more visits to stores each month
Spent 45 percent more of their dollars
Had 14 percent higher emotional attachment to the
brand
• Had 41 percent greater psychological loyalty toward
brand.
• Bottom line... facebook is a way to attract more
customers and create loyalty. And it's FREE!

8. Customer Retention Programs
Currently Active
• Patient referral

9. Bottom line