What is Customer Retention Strategy?

Answer 1

Customer Retention Strategy is used to hold your current customers after offering a product or service. Every business has to work on customer retention strategy before the competition takes your customers right from under you.

Attracting new customers can be more costly than your current customer base. Most business owners forget their current customers while attempting to attract new customers. We know finding new customers is important to run a good business and develop the business, but current customers trust you and are willing to take your product without any doubt or reservations. Also, holding on to an existing customer can be more cost-effective than attracting a new customer.

Businesses put a lot of effort into marketing strategies to attract new customers. If a business has only one product, it is easy to attract new customers, but it’s uncommon to find a business that only has one product or service.

If a business has multiple products or services, customer retention becomes even more important to business.

Let’s review steps for what is important for customer retention.

Customer Retention Strategy is used to hold your current customers after offering a product or service. Every business has to work on customer retention strategy before the competition takes your customers right from under you.

1 – Communication and keeping in touch

If you notice in Bahrain, the telecommunication companies are the best example; they keep in touch with you. When your internet or phone contract is about to expire, they offer you an extremely good package to tie you into another year. Genuine communication with your customers is key, as they will be the ones who will buy your product or service because of the already established relationship.

2 – Customer loyalty programs

This strategy increases the rate of your current customer retention, and your customers feel loyalty to buy your product. This increase is three times more than a new customer.

3 – Customer relationship

Every business has to take care of the relationship with their customers. Many businesses don’t put any importance on the connection with customers so customers easily switch to another company based on the customer service they receive alone.

4 – Post transaction

It’s important to stay in touch with customers after they have purchased your product of service. You need to communicate with the customer with a follow-up questionnaire or email them to get honest feedback. This means you can improve any areas where your customer service is lacking, and the customer feels appreciated and that their opinion is valued.

Hina Mirza

Managing Director