Customer Relationship Manager(CRM) Question:
Explain Strategies for Customer Retention?
Answer:
As the existing customers drive current business profitability, retaining them is vital for any business. Customer retention is the process of maintaining continuous trading relationship in long term. It can be achieved by the following strategies −
► Negative Strategies
The clauses of penalty, switching costs, and high exit costs make the customers feel trapped with the business. If the business enforces such strategies, it risks the reputation by customers' negative word-of-mouth.
► Positive Strategies
They help increasing customer delight by understanding customer requirements, meeting them, and providing little more beyond their expectation. Customers are delighted to do business with you when their perception is more than their expectation.
► Negative Strategies
The clauses of penalty, switching costs, and high exit costs make the customers feel trapped with the business. If the business enforces such strategies, it risks the reputation by customers' negative word-of-mouth.
► Positive Strategies
They help increasing customer delight by understanding customer requirements, meeting them, and providing little more beyond their expectation. Customers are delighted to do business with you when their perception is more than their expectation.
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