Customers have always ruled the market for all these years and it cannot be denied that they continue to rule the market at any given point of time
. Hence, customer retention has become a necessary activity and it has helped the organizations to come out with specifications in the required field based on the customer demands and the organizational deliverables. Customer retention has been very beneficial in terms of cost effectiveness and and also profitability analysis.
In fact, it is always seen that it is much beneficial to retain the existing customer than to acquire a new one. The rate of profit is generally high when a customer is retained and so it becomes very important to keep up the trend which will in turn contribute as value addition. The customer loyalty is very important and this triggers into trust and satisfaction once the existing collaboration with the current organization has relatively minimized the uncertainty and risk level for the customers.
Trust and satisfaction plays a vital role in retaining the customers. The retention of the customers shows that they are satisfied with the current vendors and so will influence the other customers. They are most likely to give positive feedback to the other customers thus influencing the behavior, beliefs and the overall perspective of the organization they are currently dealing with.. Customer satisfaction becomes the main drive which in turn is rewarded in terms of monetary basis. It is also seen that the existing customers are the customers who are the highest number of referrers.
Like always, it becomes very important to ensure that we retain the customers with strategic value as these are the customers who play a crucial role in the profitability analysis of the company. The company has to also bear in mind that the long term customers often are good competition to the other companies competing in the same arena. At times, when customers face any form of failure in the service they continue to believe in the product as they would have had good experiences in the past.
Retained customers can double a company's revenue. Hence treating them with utmost importance helps the customers have an excellent experience and they would continue to appreciate and remain loyal customers in the long run.