Customer Retention Strategies

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

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An average company has a defection

rate of 10%-30% per year.

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Raising your customer retention rate by

5% can increase the lifetime value of

average customer by 25% -100%.

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Customer loyalty is a customer’s commitment or attachment to a brand, store, manufacturer,

service provider, or other entity.

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Customer loyalty is measured by proportion of

purchase

a. Undivided loyalty: AAAAAAAAAA

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Customer loyalty is measured by proportion of

purchase

a. Undivided loyalty: AAAAAAAAAA

b. Occasional switcher: AABAACAABB

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Customer loyalty is measured by proportion of

purchase

a. Undivided loyalty: AAAAAAAAAA

b. Occasional switcher: AABAACAABB

c. Switched loyalty: AAAAABBBBB

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Customer loyalty is measured by proportion of

purchase

a. Undivided loyalty: AAAAAAAAAA

b. Occasional switcher: AABAACAABB

c. Switched loyalty: AAAAABBBBB

d. Divided loyalty: AAABBBAABB

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Customer loyalty is measured by proportion of

purchase

a. Undivided loyalty: AAAAAAAAAA

b. Occasional switcher: AABAACAABB

c. Switched loyalty: AAAAABBBBB

d. Divided loyalty: AAABBBAABB

e. Indifferent: ABCDADCBAC

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Customer loyalty includes:

a. A behavior regarding the product

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Customer loyalty includes:

a. A behavior regarding the product

b. An attitude towards the brand/company.

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Challenge with behavior as a loyalty criteria is a

customer may repeat purchases because:

a. Convenience, price, availability, or inertia

due to habit.

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Challenge with behavior as a loyalty criteria is a

customer may repeat purchases because:

a. Convenience, price, availability, or inertia

due to habit.

b. Purchases made w/out motive for choice

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Attitude towards a brand is favorable that

reflects preference & commitment

expressed over time.

Includes emotional attachment

& positive evaluation

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Behavior factors include:

a. Choice

b. History with company

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Attitudinal factors include:

a. Satisfaction

b. Emotional Bonding

c. Trust

d. Risk reduction

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On average, U.S.

corporations lose

of their customers

every 5 years. ~ Reicheld

Customer satisfaction: A post-purchase

evaluation that results from a comparison

between pre-purchase expectation and

actual performance

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On average, U.S.

corporations lose Xerox found that a satisfaction rate of a 4 out of

5 were more likely to switch to competitor than

those that rated 5.

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Emotional Bonding:

a. Brand affect, brand equity

b. Company attachment

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Emotional Bonding:

a. Brand affect, brand equity

b. Company attachment

c. Feelings of closeness,

affection trust & respect

d. Technology limits emotional

bonds.

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Willingness of customer to rely

on organization

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Reduces uncertainty and risk

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Honest, fair and unreasonable.

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Customer

Retention

Strategies

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1. Create A Culture

Of Buzz!

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If the marketplace isn't talking about you,

there's a reason. The reason is that you're

boring. And you're probably boring on

purpose. You have boring pricing because it's

safer...You have boring products because

that's what the market wants.

~ Seth Godin

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2. Consistency

builds trust!

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Customer retention is a long-term game, not a

drive-by event.

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Repetition, consistency & authenticity build

trust and are the foundational tools of

customer retention.

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3. Trust most

important factor to

offer!

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Lack of trust is the single

greatest reason you can’t

keep customers.

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Trust is earned by keeping

promises.

Trust is lost by overpromising

& under delivering.

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When you’ve earned trust, you

can make mistakes, own up to

them and correct them

without loss!

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4. Staff as customer!

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Your employees treat your

customers the same way you

treat the employees!

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Must retain your best

employees so you can retain

your best customers.

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5. Create an open

dashboard.

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One-page, high-level view of

key strategic, marketing and

financial indicators.

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Transparency with employees

key to company success and

vision as well as customer

retention.

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6. Golden Rule Of

Customer Retention:

Give To Get

Mentality.

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Those who usually give…get!

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Approach customer relationships by asking,

"What am I here to give?" or

"How can I serve?“

Not, “What can I sell you.

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Develop a strategic partner relationship with

a view toward adding value

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7. Turn your attention

to educating not

selling.

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Successful customer retention

provides valuable content &

education that shows how

brand understands customer

needs.

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Content marketing strategy is

critical here…providing useful

and helpful content of value.

• Schmoll Moch

• Francisco Cisirio

• Bullion Vault

• Wildxplorer

• Morgan Cito

• Thomas Hawk

• FutUndBendl

• Xose Castro

• Bahman

• ArkansasSupportsP

hotography.com

• Nettsu

• CPThuh

• Andreas Kollegger

• Mag3737

• Patrick Hoesly

• Danard Vincente

• Transcam

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