customer retention

(noun)

The act of keeping customers consistently consuming products offered by an organization.

Related Terms

Examples of customer retention in the following topics:

  • Customer Relationship Management

    • Customer relationship management focuses on improving retention through improving communication with consumers, and leveraging data to better understand needs.
    • While it delivers a wide range of benefits, the central focal point of customer relationship management (CRM) is customer retention.
    • Customer retention is a simple concept.
    • In sourcing your coffee beans, you notice customer retention is low if they order a particular roast of coffee.
    • Integrate the customer relationship management perspective into the broader organizational strategy, and recognize how organization's benefit from retention

  • Salesperson Personalities

    • This is when the salesperson initially meets with the customer.
    • Following up will ensure customer satisfaction and help establish a relationship with the customer.
    • Customer Retention And Deletion: 80% sales normally come from 20% of customers (Jobber and Lancaster, 2006).
    • Customer Relationship Management: Customer relationship management or CRM focuses on establishing long term relationships between companies and customers.
    • As mentioned above, customer retention is very important as most sales come from regular customers.

  • Modern Trends in Marketing

    • More specifically, it involves identifying target customers, understanding the needs and wants of customers, and developing products or services according to those needs--thereby satisfying the needs better than competitors.
    • Relationship marketing was first developed through direct response marketing campaigns emphasizing customer retention and satisfaction, rather than a dominant focus on sales transactions.
    • The practice of relationship marketing has been facilitated by several generations of customer relationship management software that allow the tracking and analysis of customer preferences, activities, tastes, likes, dislikes, and complaints.
    • A key principle of relationship marketing is the retention of customers through varying means and practices to ensure repeated trade from preexisting customers by satisfying needs better than the competition.
    • Companies are customizing marketing programs to individual accounts.

  • Long-Term Relationships: Satisfaction and Loyalty

    • Customers are willing to pay higher prices; they may cost less to serve and can bring new customers to the firm.
    • Customers' perceived value, brand trust, customers' satisfaction, repeat purchase behavior, and commitment are found to be the key influencing factors of brand loyalty.
    • Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation.
    • Unsatisfied customers are not loyal customers, thus customer satisfaction is seen as a key performance indicator within business and is often part of a "Balanced Scorecard. " In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
    • Much research has focused on the relationship between customer satisfaction and retention.

  • Consumer Purchasing Behavior

    • It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.
    • Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer.
    • A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing.
    • Marketing provides services in order to satisfy customers.
    • Selective exposure consumers select which promotional messages they will expose themselves to.Selective attention consumers select which promotional messages they will pay attention to.Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences.Selective retention consumers remember messages that are more meaningful or important to them.The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.

  • Stakeholders: Consumers, Employees, and Shareholders

    • Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engagement (i.e. loyalty, improved recruitment, increased retention, higher productivity, and so on).
    • Key external stakeholders include customers, consumers, investors (particularly institutional investors), communities in the areas where the corporation operates its facilities, regulators, academics, and the media .

  • Brand Management Strategies

    • Brand management is a wide and varied study of the various approaches organizations can take to maximize consumer awareness, engagement, retention, and loyalty.
    • Through creating a lasting impression and meaningful relationship with users, organizations can retain customers and create brand loyalty.
    • Brand loyalty simply means that customers, when making a purchase to fulfill a given need, will default to their brand of choice.
    • Brand of choice is something every organization wants to be, as the cost of maintaining loyal customers is much lower than the cost of acquiring new ones.
    • Loyal customers are cheaper, and happy customers are likely to talk about the company in a positive light.

  • Cross-Training and Job Sharing

    • Helps customers and clients by empowering employees to answer questions about the entire organization
    • Job sharing should not be confused with the more pejorative term featherbedding, which describes the deliberate retention of excess workers on a payroll.

  • The Social Environment

    • Human resources: A CSR program can aid recruitment and retention.
    • CSR has been found to encourage customer orientation among frontline employees.
    • CSR can play a role in building customer loyalty based on distinctive ethical values.

  • Aligning employee career development with organizational growth

    • However, the direction of competition will not only be for customers, but also for talent.
    • Satisfied talent will attract more customers and in turn will keep them satisfied.
    • Schweyer makes a case for improving the retention strategies within the organization because winning the internal war for talent is as critical as losing a top performer and leads to general employee dissatisfaction.