Customer Retention Strategies 2007

1
Customer Loyalty
and
Retention Strategies
Customer Loyalty and Retention Strategies 2009
2
Customer Retention Strategies
Welcome
Reliability
Responsiveness
Recognition
Personalization
Reward Strategies
Customer Loyalty and Retention Strategies 2009
3
A welcome strategy
The organizations appreciation for the
initiation of a relationship.
Creating a delightful surprise, making a good
first impression
First touch: additional customer information
Reassure the buyers that they have made the
correct choices.
Treat like a first date. Dont overdo it!

Customer Loyalty and Retention Strategies 2009
4
Reliability
The organization can repeat the exchange
time and time again with the same satisfying
results.
Keep promise
Ensure consistent quality
Continuous promotion is still the key.
Customer Loyalty and Retention Strategies 2009
5
Responsiveness
The organization shows customers it really
cares about their needs and feelings.
Loyal employees create loyal customers.
Internal marketing.
Customer-contacted employees should
have the authority as well as the
responsibility for date to date operational
activities and CRM decision.
Customer Loyalty and Retention Strategies 2009
6
Recognition
Special attention or appreciation that
identifies someone as having been known
before.
People respond to recognition.
Recognition and appreciation help
maintain and reinforce relationships.


Customer Loyalty and Retention Strategies 2009
7
Personalization
Use CRM system to tailor promotions and
products to the specific customers.
Offer engine: take customer data after it is
analyzed and applies it to create the offer
or message that is appropriate to the
individual customer. Ex., My site, Click
stream analysis, free ride, etc.
Customer Loyalty and Retention Strategies 2009
8
Access strategy
Identify how customers will be able to
interact with the organization.
General contact, product return, technical
report, service representative, change a
mailing address
Is the access quick and easy?
Customer Loyalty and Retention Strategies 2009
9
Problem Identification and Management
Rather tell the company than switch to a
competitor or tell someone else. Acting
rather than reacting.
Build numerous mechanism for identifying
customer problems.
Customer satisfaction survey
Mysterious shoppers
Websites, other contacts points
Customer Loyalty and Retention Strategies 2009
10
Conflicts and Customer Complaints
Level of dissatisfaction
Attrition of blame
Cost/benefits of actions
Personal characteristics:
highly educated,
self-confident,
aggressive,
Older women.
Customer Loyalty and Retention Strategies 2009
11
Dealing with complaints
Having the skill to interact with different types of
people. Trained in methods of interaction and in
different style of communication.
Be customer-centric. Let the customers know that
they have been understood.
Express regret
Resolve conflict
Accommodation, Compromise, Termination
Follow-up and prevent recurrence
Keep in touch and listen to customer

Customer Loyalty and Retention Strategies 2009
12
Resolve conflict
A disagreement in which the views of the
customer and the organization appear to
be incompatible.
Accommodation: a settlement that
emphasizes cooperative behavior.
Compromise: mutually acceptable middle
ground that is somewhat satisfactory to
both parties.
Termination