Loyalty plays an important role in the world of business. There can be no compromises to brand loyalty in your company. You can create a killer product but without reliable customers, you are planning for the product’s failure beforehand. The communication between your product and the customer is crucial for the customers to showcase their loyalty to your company.
“Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves” These are famous words by Steve Jobs, the mastermind behind Apple who are currently worth $2.08 trillion. Customer loyalty is extremely vital for a company’s growth as seen by Apple’s sincere and loyal fanbase all over the world.
An important aspect behind gaining the loyalty factor among your customers is how well you retain them. This is because retaining a customer means to ensure they continue buying products from your company.
This factor of retention is important because it decides how well the company is seen by the customers. Let us now dive deeper into what and how customer retention is and the impact it has on a business.
What is Customer Retention?
Customer retention is defined as the process of reducing the amount of customer defections in your business. Customer defections are the attributes that are dissatisfactory for the customers like high prices and poor customer service. These defections can lead to losing your customers. Therefore, it is important to retain your customers for the longer run.
The goal of Customer Retention is to improve the relationship between the business and its buyers. A higher customer retention rate can be attained by providing perks and loyalty initiatives.