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.

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.

13. Analytical and Operational
CRM

14. Areas to look forward :-
Brand reputation
Perceived value
Customer experience
Quality Assurance
Loyalty program

15. Funnel model:-