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Cutsomer retention means that they keep coming back again and again. If you are in business it talkes far more effort (time and expense) to get new customers all of the time than it does to keep the customers you already have.
If you purchase a car from a particular car dealership they want to keep your business the next time you are looking to purchase a car. To do that the salesman will send a card to you from time to time. The dealership will send you flyers in the mail to let you know that they are having a sale. They want to keep you as a customer.
Walmart is so successful because they advertise a lot. They put out sales flyers every so often but they are known for having products that are supposed to be the lowest price around. But Walmart's prices are not always the best price around.
So, the point is that you want to keep the customers you already have but you also want to keep drawing in new customers. If your business offers good customer service then they will come back repeatedly.
An example of poor customer service is one my son told me about that happened to him recently. He's looking at going to college for the first time. He's 28 years old. He made some inquiries about colleges in his area. He contacted one of them. The woman he spoke to on the phone was rude. She refused to arrange for him to tour one of their campuses (they have several in the area). He figured that if he was about to spend thousands of dollars to get an education the least an institution such as a college could do is to treat prospective students with respect. He's decided to attend a different private college that's more expensive even though it's a Christian college and he has no religious affilliation at this point in time.
KATI
it costs 3 times as much to get new customers, than to keep current customers happy
googie
Very simple. A company or entity which cannot retain its customers is soon out of business. You take it from there.
Shiva
continuious business with him, you are assured that he come back to you again for the service you offer.
Biz Advisor
The cost of retaining customers is considerably less than the cost of looking for and getting new customers. Additionally, once you have a customer you can gain efficiencies that create even more savings and earn more income on long-term accounts.
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