Overview

This article discusses the concept of a Customer Retention Program, its importance, and its impact on profitability. It also touches upon the role of customer satisfaction and personal interactions in retaining clients and the related costs of customer acquisition versus retention.

Information

The following sections provide detailed insights into a Customer Retention Program, why it is crucial for businesses, and how it is connected to other relevant terms and resources.

What is a Customer Retention Program?

A customer retention program involves activities aimed at improving customer satisfaction. Customer retention is influenced by the quality of the products and services offered and the personal interactions between the company and its clients. A customer retention program involves proactively solving problems, anticipating customer needs, and following through on customer complaints.

Why Is A Customer Retention Program Important?

Customer retention directly impacts profitability. Satisfied customers generate 1.7 times more revenue than typical customers, according to research by John Fleming and Jim Asplund, authors of Human Sigma: Managing the Employee-Customer Encounter. The cost of acquiring a new customer is five to seven times that of retaining an existing customer.