Customer Retention

Customer Retention

Customer Retention Jonathan Poland

Customer retention is the practice of reducing the loss of customers to competitors. A high customer retention rate typically results in greater customer lifetime value and reduced promotional costs such as advertising. Many firms view customer retention as the result of customer experience and customer service. In many cases, satisfied customers are unlikely to defect. Here are some examples of strategies that companies can use to improve customer retention:

  • Offering high-quality products or services: This can help build trust and confidence among customers, making them more likely to continue purchasing from the company. For example, a restaurant might use fresh, high-quality ingredients in its dishes, or a clothing store might offer durable, fashionable clothing.
  • Providing excellent customer service: Customers who have a positive experience with a company’s customer service are more likely to continue doing business with the company. For example, a company might offer easy-to-use online tools for customers to track their orders or ask questions, or a store might have knowledgeable and friendly sales staff.
  • Implementing loyalty programs: These programs offer rewards or incentives to customers who continue to make purchases from the company. For example, a coffee shop might offer a punch card that gives customers a free drink after they purchase a certain number of drinks, or an airline might offer frequent flyer miles that can be redeemed for flights or other rewards.
  • Gathering and responding to customer feedback: Companies can use customer feedback to identify and address any issues that might be causing customers to stop doing business with them. For example, a company might survey its customers to find out what they like and dislike about its products or services, and then make changes based on that feedback.
Learn More
Good Customer Service Jonathan Poland

Good Customer Service

Good customer service is a service experience that goes above and beyond to meet the needs and expectations of customers,…

Negotiation Jonathan Poland


Negotiation is a dialogue between two or more parties with the goal of reaching an agreement. It is a fundamental…

Change Strategy Jonathan Poland

Change Strategy

Change strategy is the process of planning and implementing change within an organization in a systematic and effective manner. It…

Economic Change Jonathan Poland

Economic Change

Economic change refers to shifts in economic conditions, such as changes in GDP, employment rates, and prices. These shifts can…

Labor Productivity Jonathan Poland

Labor Productivity

Labor productivity is a measure of the efficiency with which labor is used to produce goods and services. It is…

Bankability Jonathan Poland


Bankability is a term used to describe the ability of a project or venture to secure financing from a lender…

Risk Estimates Jonathan Poland

Risk Estimates

Risk estimates are predictions or projections of the likelihood and potential consequences of risks. They are used to inform risk…

Internal Controls Jonathan Poland

Internal Controls

Internal controls refer to the structures, processes, practices, reports, measurements, and systems that are implemented within an organization to support…

Cost Benefit Analysis Jonathan Poland

Cost Benefit Analysis

Cost-benefit analysis (CBA) is a systematic approach to evaluating the costs and benefits of a project, program, or policy to…


For building

better assets

Business ownership remains the best way to build wealth, whether that’s direct ownership of a private business or via publicly traded stocks. Here’s how I can help you…

PLEASE NOTE: I am not a registered investment adviser and do not provide financial advice. My work is primarily with business leaders, turning insights from the financial markets into models for growth, development, and better capital allocation.