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
Customer Analysis Jonathan Poland

Customer Analysis

Customer analysis involves systematically examining and understanding the characteristics, needs, motivations, and decision-making processes of a target market. This process…

Razor and Blades Jonathan Poland

Razor and Blades

The razor and blades model, also known as the bait and hook model, is a business strategy that involves selling…

Exit Planning 150 150 Jonathan Poland

Exit Planning

Exit planning is a comprehensive strategy for business owners to transition out of their company on their terms. It involves…

Professionalism Jonathan Poland

Professionalism

Professionalism is the practice of following the standards and expectations of one’s profession, organization, and role. It involves upholding the…

What is Food Sovereignty? Jonathan Poland

What is Food Sovereignty?

Food sovereignty is the right of peoples and countries to define their own food and agriculture systems, rather than being…

Productivity Jonathan Poland

Productivity

Productivity is a measure of how efficiently resources are used to produce goods and services. It is typically calculated by…

The Lobbying Process 150 150 Jonathan Poland

The Lobbying Process

Lobbying the government involves a series of steps to effectively communicate your message, build relationships with decision-makers, and influence public…

Algorithms Jonathan Poland

Algorithms

An algorithm is a set of instructions or rules that are followed to solve a problem or accomplish a task.…

Business Assets Jonathan Poland

Business Assets

In business, assets are useful property that are owned by the company. These assets can be divided into three categories:…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Algorithms Jonathan Poland

Algorithms

An algorithm is a set of instructions or rules that are followed to solve a problem or accomplish a task.…

Income Statement Jonathan Poland

Income Statement

An income statement is a financial statement that shows a company’s revenues, expenses, and profits over a specific period of…

Hyperinflation Jonathan Poland

Hyperinflation

Hyperinflation is a situation in which there is a rapid and significant increase in the price of goods and services,…

Performance Problems Jonathan Poland

Performance Problems

Performance problems are issues that arise in the workplace due to the inadequate or poor performance of an individual. These…

Brand Switching Jonathan Poland

Brand Switching

Brand switching refers to the act of a customer switching from a brand that they were previously loyal to, to…

Barriers to Entry Jonathan Poland

Barriers to Entry

Barriers to entry refer to factors that make it difficult for new companies to enter a particular market. These barriers…

What is Reliability? Jonathan Poland

What is Reliability?

Reliability is a measure of the ability of a product or service to perform consistently and predictably over time. It…

Corporate Identity Jonathan Poland

Corporate Identity

Corporate identity is the visual representation of a company’s brand and values. It includes elements such as a company’s logo,…

Creative Destruction Jonathan Poland

Creative Destruction

Creative destruction is a process in which new, innovative ideas and technologies disrupt and replace older, established industries and firms.…