When managing customer retention it’s important to evaluate the effectiveness of efforts directed at this objective. This is measured in a key performance indicator referred to as the customer retention rate. The retention rate is the percentage of customers that return for service within a given time period – usually a year. Knowing the customer retention rate is critical but even more important is the comparison against specific benchmarks such as industry standards or same month previous year. If measurements against these benchmarks are positive then customer retention efforts are effective. If not there are weaknesses that need to be addressed. In either event follow ups to identify reasons for lost business can provide opportunities for improvement. Following are points on customer retention management:
- Monitor Customer Retention Rates – In order to effectively manage customer retention it’s necessary to know the rate at which customers are being acquired and retained. If marketing efforts are successful these rates will improve over time … Read More >>
- Employ Customer Follow Ups – Following up with customers can go a long way toward improving customer retention rates. Direct contact helps to reinforce the relationship as well as identify areas that require improvement … Read More >>
- Manage Online Reviews – On line reviews are a critical part of today’s business environment. Managing online reviews will result in higher customer retention rates … Read More >>
