Gainsight Glossary

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.

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