CUSTOMER RETENTION

1. Customer
Retention
Vijyata
Assistant Professor
Ranchi Women’s College

2. In almost all business
situations, it is more
expensive to win a
new customer than to
keep an existing one

3. Customer Retention -definition
Customer Retention is how well the customers STAYS and
STAYS ENGANGED with the organization or the specific
product or service or idea or concept.
STAYS - Customer being active and user of your product
and service. This is mainly relevant to the products and services,
having an existing contract.
STAYS ENGAGED - Customer who maintain or increases
the level of relationship with the organization/product or service.
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4. Why is it important to retain
customers?
With few defections company can achieve significant
amount of profit because :
→ Loyal Customers buy more products
→ Loyal customers are less price sensitive and pay less
attention to competitor’s advertising or promotional efforts
→ Servicing existing customers who are familiar with the firm’s
offerings and processes, is cheaper
→ Loyal customers spread positive word-of mouth.
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5. Customer Retention Strategies
More Value to Customer intimacy
Building Selective relationships
Customer profitability -focused marketing
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6. Customer -
pyramid
The Platinum Tier
(Heavy users, non-price
sensitive, Innovators)
The Gold Tier (Heavy
users, but price
sensitive)
The Iron Tier (Low profitability, low
spending volume)
The Lead Tier ( high acquisition cost, spend
very less but demand more attention)
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7. “The best approach to
customer retention is to
deliver customer satisfaction
that results in strong
customer loyalty.
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8. THANK YOU!!!