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 Customer retention strategies
Ans: Companies are finding that customer profitability tends to increase over the
life of a retained customer, so employing customer retention strategies is
a worthwhile use of company resources. We have compiled some of the
more successful customer retention strategies:

i) Set customer expectations – Set customer expectations early and a little lower
than you can provide to eliminate uncertainty about the level of your service and
ensure you always deliver on your promises.

ii) Become the customers’ trusted advisor – You need to be the

expert in your particular field, so that you can gain customers’ trust
and build customer loyalty.

iii) Use relationships to build trust – Build relationships with

customers in a way that fosters trust. Do this through shared values
and fostering customer relationships.

iv) Take a proactive approach to customer service – Implement

anticipatory service so that you can eliminate problems before they

v) Use social media to build relationships – Use LinkedIn, Twitter,

and Facebook to connect and communicate with customers and give
them a space for sharing experiences with your company, so they
can become brand ambassadors.

vi) Go the extra mile – Going above and beyond will build strong
relationships with customers and build long-term loyalty by paying
attention to their needs and issues.

vii) Make it personal – Personalized service improves customer

experience and is something customers are expecting and
demanding. Make their experience personal to strengthen the bond
with your brand.

Q2. How to prevent customer defection

1. Analyze your customer-

Yes, this may sound obvious, but let’s stress it once again: you have to simply find out why
customers decided to leave.The easiest way to do this is to talk to the customer.
2. Engage with your customers

Another way to prevent defection is to actively engage your customers with your
product. Give your customers reasons to keep coming back by showing them the
day-to-day value of using your products, by making your products, services,
offers, etc. a part of their daily workflow.
3. Educate the customer

You have to provide enough good quality educational or support materials, which
will help increase retention and reduce defection. Offer free trainings, webinars,
video tutorials, and product demos – whatever it takes to make your customers
feel comfortable and informed.
4. Offer incentives

Another advisable tip is to offer incentives, such as discounts and special offers,
to those customers who were identified as likely to defect. Offering incentives
and discount offers is widely regarded as the most effective tactic in reducing
5.Target the right audience
No matter how sophisticated your retention tricks are, they may all go down the
drain if you are attracting the wrong audience.
6. Give better service
It is the most obvious method of keeping customers by your side. In fact, poor
customer service is the leading case of customer defection.
7.Pay attention to complaints

Complaints are like tips of the icebergs – they suggest that the bigger part of the
problem is hidden from the view.