Paper on Customer Retention - 1638 Words

INTRODUCTION Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. Customer retention is more than giving the customer what they expect; it’s about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts ‘customer value rather than†¦show more content†¦All gung-ho and fresh out of the gate, startup entrepreneurs often find it more exciting to focus on customer addition, but ignoring customer attrition could eventually spell their downfall. In the spirit of Ben Franklin’s age-old idiom that â€Å"a bird in the hand is worth two in the bush†, here’s a look at five customer retention tips for entrepreneurs. Never Underestimate the Value of Retention For those who feel that customer retention plays a relatively minor role in helping a company grow a healthy bottom line, here are a few statistics you might be interested in. According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. And if those numbers don’t impress you, Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers. Still not sold on customer retention? One final statistic provided by Lee Resource Inc. should give you plenty to think about: Attracting new customers will cost your company 5 times more than keeping an existing customer. Implement an Effective Customer Retention Program Many entrepreneurs believe that if they have a great product or service and provide an outstanding customer experience, customer retention will naturally follow. And if this is your startup philosophy you would be right †¦ but only for a while. Customers don’t owe you their loyalty.Show MoreRelatedSample Resume : Employee Service Support Specialist Essay1706 Words   |  7 Pagesabout 3 years as a customer service support specialist. Her job is to file and assist with whatever else is needed by the customer representatives. The organization Breonna works for is a large insurance company in Arkansas, by the name of Arkansas Blue Cross and Blue Shield. Breonna is the only customer service support specialist in her department. She services three different teams alone. One day she notices that the three different teams has their own way of documentation retention. 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