Section Article

Investigating Customer Retention as a Marketing Strategy.
Author(s): Yashpal Sharma

Abstract
Regularly assessing the quality of a companys product or service is crucial. Retained customers are crucial to any firm since they contribute more financially spend less and provide valuable references to potential clients. Sherden suggests that a customer retention program should start by establishing a chronology that outlines the many significant events and contacts that occur throughout a typical client relationship. Conduct a study on the trends of customer attrition immediately. Defections may happen at any stage of a relationships lifespan or as a result of price hikes. Retention strategies may assist businesses in identifying the unmistakable indicators of customer attrition. Customer retention refers to the ability of a firm to effectively retain long-term connections with its customers. It has a significant impact on the total growth rate of organisations. In order for a firm to attain a net growth rate of 5% it must increase its client base by 20% while maintaining a customer retention percentage of 85%. (20% increase minus 15% decrease). Revenue would triple if 95% of customers were kept. Retaining consumers offers several advantages including significant company development. Investing in long-term customer retention is crucial for improving your financial performance. Allocate two to four times more resources towards acquiring new customers compared to sustaining connections with existing clients annually. You have the option to distribute the cost across many years after you retain customers. Businesses may use customer lifecycle management strategies by prioritising customer acquisition retention and value enhancement. Academic enquiries into the correlation between customer management and the value generated for shareholders by marketing businesses indicate the need for more study and analysis on the relationship between client retention and shareholder value. Businesses should devote 5% of their marketing budget into sales and promotions for every 1% increase in customer retention. There is now more evidence that marketers must prioritise customer retention. Evidence from a comprehensive analysis of the marketing literature suggests that certain managerial strategies are linked to increased levels of customer retention. Therefore the importance of focussing on consumer needs and maintaining client loyalty is well recognised. Relationship management in business involves the integration of people processes and technology to understand and manage client interactions (Chen & Popovich 2003). The objective is to maximise profits while ensuring customer satisfaction. The objective of relationship marketing is to cultivate and sustain ties with the aim of promoting their ongoing presence.