What is Customer Retention?
Customer Retention is the ability of an organization or business to retain customers by providing them good services, managing the quality of the products sold and quickly satisfy customer issues.
Company revenue increases by bringing new customers, but it is even more critical to preserve the existing customers. It often costs much more to acquire a new customer than to keep them.
Benefits of Customer Retention
- Creating a good relationship with customers is cheaper than spending time and money on marketing.
- Loyal customers create word-of-mouth referrals personally or via social networks.
- Happy customers are more likely to buy more products from your company. It is easier to upsell them compared to approaching a new company with whom you do not have a relationship with.
Tools that can Improve Customer Retention
- A Contact Manager or CRM can help keep track of all your customers and separate them from your other leads. It can also track the communication between you and your customers via direct messages or social networks.
- A Campaign or newsletter creation software can automate sending periodic information to your customers. It helps to keep in touch with your customers periodically by sending them important news or advancements in your area of expertise.
- A tool to track customer issues and their resolution can also be immensely helpful in answering customer queries on time. You can also create in-house metrics to find out how your service professionals are supporting your customers.
- A survey software to get periodic customer feedback.
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