Customer Loyalty & Retention Strategies

1. Customer Loyalty &
Retention Strategies

2. Customer Retention has not really
been a focus of Marketing programmes
in the past which usually tends to focus
on new customer acquisition!!!!
But all that is set to change, as
businesses realize the power of
upselling and cross-selling to
customers who already knew and
trust a brand!!
A typical business loses 10% of it’s customers a year,
but by cutting that by just 5%, they can see their
profits increase by 25-125%!!!
Most companies can increase
revenues by 50% by increasing
Customer Loyalty & Retention just by
5%!!!

3. Delivering the “Best Customer Experience”
plays a major role in improving Customer
Loyalty & Retention….

4. Delivering Best Customer Experience…
It may sound like stating the obvious but research shows that..

5. Delivering Best Customer Experience…
It may sound like stating the obvious but research shows that..
Almost 70% of
the Customers
leave because of
poor customer
service

6. Delivering Best Customer Experience…
It may sound like stating the obvious but research shows that..
Almost 70% of
the Customers
leave because of
poor customer
service
Almost 70% of
the Customers
leave because of
poor customer
service
91% of unhappy
customers will
never do
business with
the provider
again

7. Delivering Best Customer Experience…
It may sound like stating the obvious but research shows that..
250
Each one of your customers has a
circle of influence of around 250
people or potential customers who
hear bad things about you!!!

8. Who is a Customer…
A Customer is the most important person in any business….
A Customer is not dependent on us. We are dependent upon him..
A Customer is not an outsider, not an interruption to our work. He is the sole purpose of it…
A Customer is not just money in the cash register. He is a human being with feelings and deserves to be treated
with respect…
A Customer deserves the most courteous attention we can give him…
He pays our salary..
He is the lifeblood of every business…

9. Customer Satisfaction…
Customer Satisfaction is Customer’s perception of the degree to which the customer’s expectations have
been fulfilled…
Customer satisfaction is how well our Products, Service, Support and Engagement are able to meet the
Customer Expectations…
Customer Satisfaction has a great co-relation with Customer lifetime value…
A Satisfied Customer…
- adds to his current value, but more importantly it’s the lifetime value which the organization will gain
- will go for repeat purchases often
- will give you valuable references

11. Delivering Best Customer
Experience is a great opportunity
to…

12. Delivering Best Customer
Experience is a great opportunity
to…

13. Build Customer Loyalty!!!!!
Delivering Best Customer
Experience is a great opportunity
to…

14. Customer loyalty is a customer’s
commitment or attachment to a
brand, store, manufacturer, service
provider, or other entity.
Feelings or Attitudes that incline a
customer either to return to a
company to purchase there again..

15. Customer Loyalty is measured by
proportion of purchase…
Undivided Loyalty – AAAAAAAAAA
Occasional Switcher – AABAACAABB
Switched Loyalty – AAAAAABBBBBB
Divided Loyalty – AAABBBAABB
Indifferent - ABCDADCBAC

16. Customers become
loyal to a company
and its products /
services one step at
a time…

17. Customer Retention!!
A strategy whose objective is to keep a company’s
customers and to retain their revenue contribution.
Primarily it aims to prevent customers from going to
competitors.
Customer Retention is how well the customer STAYS
and STAYS ENGAGED with the provider or with specific
products / services…

18. 32

19. Customer retention is a long-term
game, not a drive-by event!!!

20. Lack of trust is the single greatest reason
you can’t keep customers!!

21. Next Golden Rule for Customer
Retention…
Give to Get Mentality!!!!

22. Approach customer
relationship by asking..
"What am I here to give?"
"How can I serve?“
Not as, “What can I sell you?”
Develop a strategic partner relationship with a view towards
adding value!!!
Successful customer retention provides valuable content & education that
shows how they understand customer needs!!

23. How can we accomplish this?
Serve First Sell Second…
Today’s customers are smarter, better informed and more
intolerant of ‘being sold’ than ever before…
 Think beyond money
 Establish rapport & gain confidence from the customer that you
should be able to help…
 HEAR the customer and take his complaint seriously..
 Demonstrate interest and a desire to find the best solution for the
customer…
 Keep the customer clear on what is happening / what will happen /
and by whom…
 Ensure proper follow-ups and closure.. Act in a way which makes the
people move-up the Loyalty Ladder!!!