Understanding Customer Service and Retention

attract customerCustomer retention is a top priority for businesses of all sizes. The term refers to the activities that companies perform to retain their customers and reduce defections. Successful retention starts with the first contact between an organization and a customer, and it continues throughout the lifetime of this relationship.

The ability to attract and retain customers is closely tied to the products and services that a business provides. It also strongly relates to its level of customer service and its reputation in the marketplace. The way a company relates to its customers can make or break the business.

Retaining customers requires more than giving them what they expect. Companies must exceed their expectations if they hope to gain loyal advocates for their product, service or brand. Creating loyalty is a business strategy that centers on customer value above shareholder value and profit maximization. Companies that provide a high level of customer service have a definite edge in their competitive environment.

Good customer service and retention have a direct impact on a companyโ€™s profitability. Gallup research conducted by Jim Asplund and John Fleming found that engaged customers generate more revenue than normal customers. Companies that engage their employees and their customers have even greater profitability.

Large and small businesses alike can boost engagement and retention with help from companies that provide revenue management services. Service Source is one example. These companies help businesses build long-term relationships with their customers to drive growth and increase profits.

Customer retention is a top priority for businesses of all sizes. The term refers to the activities that companies perform to retain their customers and reduce defections. Successful retention starts with the first contact between an organization and a customer

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