What is a Customer Retention Program?
A customer retention program involves activities aimed at improving customer satisfaction. Customer retention is not only influenced by the quality of the products and services offered, but also the personal interactions between the company and its clients. A customer retention program involves being proactive to solve problems, anticipating customers’ needs and following through on customer complaints.
Why Is A Customer Retention Program Important?
Customer retention directly impacts profitability. Satisfied customers generate 1.7 times more revenue than typical customers, according to research by John Fleming and Jim Asplund, authors of Human Sigma: Managing the Employee-Customer Encounter. The cost of acquiring a new customer is five times to seven times the cost of retaining an existing customer.
Related Terms: Customer Success Teams, CRM Software, Advocate Experience
Related Resources: Acquisition Metrics Beyond Customer Lifetime Value