Customer retention has been one of my major efforts all the time. “Words of Mouth” through my satisfied customers has been one of the most effective marketing channels. Only satisfied customers with highest level of loyalty can promote you. Customer retention can not be sustained so easily. I tried to come out with a formula that keeps you identify your focus areas for retaining your valuable customers.

Customer Retention = Consistent Service Excellence + Customer Satisfaction + Customer Loyalty

The success and profits of an organization or even for an individual freelancer can be determined by the level of customer satisfaction and their retention. When you offer good service consistently and even exceeding the expectations of the customers, your customer is satisfied. You earn loyalty from your customers and they come back again and again for your service. When there is customer loyalty the customer retention level is high and your business results tend to progress.

It’s long been said that it’s much easier and less expensive to maintain your current customers than it is to attract new customers from your competition. Customer retention is very important in today’s competitive global marketplace, its not so easy to retain your customers as so easily said. Competition is so tough and every one is contending on cost, quality, values, personalization, localization, and a lot more.. Customers have got a lot of choices. Customer satisfaction has a great deal to do with customer retention. Any business without a focus on customer satisfaction is at the mercy of the such open market, where you can not control much. Without loyal customers eventually a competitor will satisfy your customer’s expectations and your customer retention rate will decrease.

I will discuss more on this in my next post. If you enjoyed reading my posts, then please Subscribe to My RSS feed.