Importance Of Customer Retention Strategy
As per a Harvard Business School report, on average, increasing customer retention rates by 5% increases profits by 25%-95%. This substantiates the importance of customer retention in driving sales and revenue.
How to Create a Customer Retention Strategy
Gainsight knows that customer churn is a reality that every company has to deal with. Hence, Gainsight suggests a proactive approach to reduce customer churn and manage customer retention. Gainsight believes in finding the root cause of customer churn and eliminating it rather than adopting a reactive approach. Below are some facts that validate the importance of implementing a customer retention strategy.
Benefits of a Customer Retention Strategy
- Identify and explore referral sales opportunities
- Build and foster constructive relationship with customers
- Identify and rectify flaws within company policies and processes
- Enhance brand reputation
- Understand future needs of the customers
For any business, customers are the greatest asset. This makes customer retention an important business strategy to increase profits and reduce churn.