Having a strong and broad client base is a perfect situation to be in for any business looking to compete with the best and the most established players in the industry. With the present situation and the volatile market situations, it is not easy if not impossible to keep the interest of the targeted audience alive. According to a rough estimate a business tends to lose 20-25% of its client base just because of customer relationship strategies.

Getting a comprehension about the significance of customer service and customer retention is today a necessity for businesses in their journey for survival and growth. The implications of losing business can be hard to digest and the cost of restoring interest can be huge. In any case, only some businesses actually understand the significance of retention and those are ones that stay ahead of the competition.

The positive effect of the retention process improves over a span of time. Robust customer retention can allow a business to move ahead of its rivals and remain afloat during crisis times. The subsequent impact on the long term revival and growth prospects should not be undermined. There are various client retention methods that have been created, executed and improved over duration of time. Every system includes a step-by-step process that will increase retention significantly, when actualized appropriately. This thusly has a positive and desired effect on any business and its prospects in the long term.

Significance of Retention For A Business

Robust client retention is essential for the growth of any business. Even a little decrease in the customer attrition rate can positively affect the profitability; anyway the goal is to continue working on strategies to help bring the rate down to a more acceptable level. Acquisition of customer incur huge costs for a business (with respect to Advertising, Marketing and Promotions, etc.), while retention may involve just a small amount of that investment. Offering fine products or services probably won't be sufficient to hold a customer, due to intense competition.

Retention management for an organization should be based on the combination of the following:

 Improved consumer satisfaction by offering consistent product quality and customer service.

Motivation for carrying on doing business with a specific organization.

 Readiness and drive to attract or recommend a service provider or company.

The two factors those are indispensable for retention and which should be pursued thoroughly are:

Consumer loyalty - A happy client will in all likelihood stay with a specific business. Happy clients don't really look for alternatives or substitutes.

Organized and proactive customer relationship management- Active engagement with the customer all the time is indispensable for a business. Rather than waiting for consumers to complain about a low quality product or service, going out and tackling the issues face-to-face, should be the approach of the company.

Conclusion

Organizations having high retention rates grow faster. Up keeping a healthy relationship with clients is requisite to retain them.

Author's Bio: 

Rahul has been leading digital transformation across various sectors and businesses. He is familiar with the opportunities to transform sales and marketing. Rahul believes that the combination of AI and rapid developments in data science will be a game changer for businesses looking to improve customer experience, lower operational costs and achieve high margins over the next few years.