Customer Retention is the important managerial issue and is the key objective of relationship marketing. It is very much beneficial from economic point of view, as it costs less to retain then to acquire new customers. It is the duty of the organization to teach their employees that they all are service providers and also educate them to emphasize on Customer Retention. When companies are providing timely and good quality service to its customers within reasonable price then they are able to retain their customers.
Customers are the major stakeholders of your business and they are the partners in profit, reputation and respect of any organization. So customer retention is most important for the survival of a business. For retaining customers organizations should go some extra miles means give something more than the expectations of the customers, must know your customers by name and greet them on several occasions like seasonal festivals, birthdays, anniversaries etc.
This can only be possible when organizations have complete information of their customers available in their database, also train your employees and make them realize that Customer is the King and they must be treated well, similarly organizations must encourage their customers to give their accurate and reliable feedback. The doors must be open for criticism and in this way companies can understand their competencies as well as drawbacks. Finally if problems prevail then companies should try to resolve the issues and settle the problems with their customers.
No Organization can flourish without proper interaction with the customers. So organizations must rethink about their strategies and be customer oriented instead of being profit oriented. Profits are the part and parcel of business but it is interlinked with satisfaction level of the customers. More satisfied the customers are more will be the chances for retaining them and as a result profitability will increase.
Although, globally it is an age of recession and it is very hard to compete in this current scenario. Customers have choices they can switch from one product or service to other product or service. In order to make your business successful organizations must adopt those strategies which are very much concerned with customer values and retention. So in short we can say that the focus of customer retention is essential for overall business success. The profits of an organization is based on retaining the valued customers those who remained with the company for a longer period of time it is mandatory for organizations to create good relationships with them and try to keep them, understand their problems and make them happy.