Customer Retention

Meaning
Customer retention refers to focusing the firm’s marketing efforts
towards existing customer base ,the intention being to develop long-
term relationships between firm and its current clientele for the
purpose of growing the business.
Concept of ‘leaky bucket’
Importance of Customer Relationship
Rising cost of marketing
Loss of advertiser’s share of voice
Multiplicity of media
Change in customers
Benefits of Customer Retention
Profit derived from sales
Profit derived from reduced operating cost
Profit from referals
Customer Retention Tactics
Maintain clear perspective
Link customer retention goals to bottom line
Remember customers between calls
Building trusting relationships
Monitor Service delivery process
Proper installation of equipment and training the
customers regarding use of same.
Categories of Loyalty(Marketing myopia-Piercy)
P
Sustainable Loyalty Latent Loyalty
Relative
attitude
towards
the brand

Spurious Loyalty No Loyalty

Repeat purchase
Emerging customer retention programs
Frequency program
Relationship marketing
Service guarantees
Defection management
(product defectors, service defectors, market defectors, technological
defectors)