Customer retention is integral to corporate success because it increases profits, explains Entrepreneur magazine. Satisfied customers become loyal customers who repeatedly patronize the company, increasing its earnings. Companies with effective customer retention strategies also benefit from positive publicity via customers' blogs and social media sites.Know More
There are many approaches to customer retention, and the best choice for a given company depends on its industry, corporate goals, size, products or services, customer base and local cultural norms. Successful international companies use a combination of company-wide retention strategies and retention techniques customized for each city, state or region in which the firm operates.
Popular and effective customer retention strategies include personal customer interaction, involvement in or sponsorship of community activities and loyalty reward programs. The most important element in a customer retention plan is providing high-quality goods and services, even when quality upgrades slow production and delivery. All other retention techniques depend on quality and are ineffective without it. This relationship was confirmed by a Gallup poll that revealed customers who received quality goods and courteous services were much more likely to develop loyalty for a company than those who received speedy service but mediocre products.
Personalization is another factor that influences customer retention. For example, personalized deals and Internet promotions increase the average amount of time a customer stays on a company's website. Personalized content also makes customers feel important, further increasing their probability of developing company or brand loyalty.Learn More
An example of an external customer would be a shopper in a supermarket or a diner in a restaurant. These are people who are external to a business as the source of its revenue. They are often the end-user.Full Answer >
Retention money, according to BusinessDictionary.com, is payment for a service that is withheld until the completion of a condition, usually until all conditions are met by the buyer. For example, a manufacturing company can withhold money from a supplier until all machines are installed and working properly.Full Answer >
Common steps in selling a product include acquiring product knowledge, assessing a prospect's needs, building rapport, presenting compelling benefits, closing the deal and following up with service. The specific activities involved in selling a product vary by industry and product.Full Answer >
According to Market Research World, casual research design is used to study the effects that one variable has on another. Companies often use the results to form their business plans.Full Answer >