Definition Of Customer Retention

DEFINITION OF CUSTOMER RETENTION A. Definition of Customer Retention Customer retention is a variety of actions taken by companies to retain customers to continue using their products or services. The surprising thing is, not all businesses prioritize customer retention. Based on data from Forbes, in 2012 many businesses prioritized driving sales, while customer loyalty was the last priority. As much as 25% - 40% of the total stable business income is obtained from returning customers. Repeat customers can multiply their income up to 3-7 times more than one-time buyers. Getting new customers is important, but it is even more important to retain old customers who are already customers. The higher your customer retention, the more profit your brand can get. B. Benefits of Customer Retention Many companies spend time and money to get new customers, because this is considered an easy way to increase revenue. In fact, retaining old customers requires faster and more effective time. It's easier to sell to customers who already know your brand, rather than spending time on marketing while looking for new customers. Once your company focuses on customer retention, you will find out for yourself that this strategy can be more effective. Your old customers are already familiar with your brand and have an interest in your products. So, retaining these customers is a key strategy for sustainable growth. In fact, the costs required to find new customers can reach five times more than retaining old customers. Besides that, increasing customer retention by just 5% can increase profits by up to 125%, you know! C. Building Strong Customer Relationships When your business fails to build strong customer relationships, it is possible that 20% of your customers will leave your product and look at competitors. In some business industries, this percentage figure can be even higher. The results of customer retention will be seen over time and even the smallest changes in customer retention can create a big impact. The following are strategies for building strong relationships with your customers: 1. Record inactive customers Many businesses invest time and money to build customer relationships. However, this is often forgotten once there is an initial sale. In fact, as has been mentioned, the easiest way to develop your business is to retain your old customers. Start by recording how many of your customers are no longer active, rarely buy your brand, and make efforts to improve customer relationships with them. 2. Bring back customers who have left Most of your inactive customers will be happy to rebuild a relationship with you, if you take the right approach. This is the fastest and easiest way to increase sales, because these customers have already used your products and services before. So, basically they already have an interest in your brand. You can contact the customer, find out why they haven't bought from you for a long time, show that you are happy if they come back. 3. Provide the Best Service The best way to retain customers is to provide exceptional service. This can also bring in new customers, because your old customers will tell you about your brand, which has quality products and satisfying service. Indirectly, they will recommend your brand to new customers or in other words become brand advocates. Therefore, always respond quickly to customers, ensure you provide the best service, and fulfill your commitments. D. Conclusion Retention is an important key to company sustainability. Customer retention needs to be considered seriously because they are the most profitable type of customer for your company. One way to retain customers that you can look at is to have a loyalty program that makes your customers more interested in continuing to make repeat purchases of your products.