What’s customer retention management?

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Customer retention management is the process of organizing and overseeing all of a company’s efforts to retain current customers. This may include managing loyalty programs, developing customer satisfaction programs and overseeing customer communications such as interactions on social media sites and email communications. Experts agree that customer retention management is important for companies because keeping existing customers is easier and less expensive than attracting new ones.

Several factors go into managing customer retention. One is quality control, both of products and services and of customer relationships. This means ensuring that issues with products and services are rare and that, when they do occur, they are resolved quickly and completely. It also means training a customer service team to answer questions and empowering them to provide solutions. Technical support and customer service supervisors are often an important component of a company’s customer retention management efforts.

Another way for companies to retain customers is by creating loyalty programs. These programs include frequent shopper discounts, points programs, and members-only promotions. Developing and managing these programs can be complex work. Even for simple programs like punch cards, someone must still advertise the program, communicate changes and benefits to customers, and track the distribution of rewards. Used effectively, customer loyalty programs can go a long way toward increasing customer retention.

Communicating with customers is another important part of managing customer retention. Customers are more likely to remain loyal to companies they feel a personal relationship with. This can be achieved through regular, consistent and targeted electronic and print communications. This could mean organizing email notifications of sales or promotions that are of special interest to certain customers. It can also mean managing social media campaigns, including messages, contests and promotions.

Managing customer retention efforts is rarely limited to a single individual or department, although there may be a person or team responsible for tracking and implementing these efforts. The most effective programs usually involve all areas of the company and include employees at all customer touchpoints. It is important that senior executives and field personnel are committed to increasing customer loyalty.

Companies that work to develop effective customer retention programs and then make efforts to manage those programs are likely to form more positive customer relationships; customers are likely to become loyal to the company and less likely to give business to a competitor. They are also more likely to refer friends to the business.

Asset Smart.

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