BNET Business Dictionary
Business Definition for: Customer Retention
- the maintenance of the patronage of people who have purchased a company's goods or services once and the gaining of repeat purchases. Customer retention occurs when a customer is loyal to a company, brand, or to a specific product or service, expressing long-term commitment and refusing to purchase from competitors. A company can adopt a number of strategies to retain its customers. Of critical importance to such strategies are the wider concepts of customer service, customer relations, and relationship marketing. Companies can build loyalty and retention through the use of a number of techniques, including database marketing, the issue of loyalty cards, redeemable against a variety of goods or services, preferential discounts, free gifts, special promotions, newsletters or magazines, members' clubs, or customized products in limited editions. It has been argued that customer retention is linked to employee loyalty, since loyal employees build up long-term relationships with customers.
Additional Resources
- Customer Retention, a Simplified Approach
- Retention is definitely the "Buzz" word for businesses today. Customer retention has business leader's attention and leaving most wondering how other businesses are approaching this seemingly complex business function. A web search of "customer retention" results in thousands of available web sites all with the real solutions for customer retention....
- White papers 2004-02-05
- Rethinking Customer Acquisition Before Talking Retention
- From the executive summary: ‘Customer retention has gained popularity during the last few years. The concept’s simplicity, coupled with the promise of high financial returns, has made retention a high priority at many corporations. While marketers can positively affect customer retention in a number of different ways, improving retention is...
- White papers 2003-01-01
- An Exercise In Customer Retention
- From the executive summary: ‘Once someone becomes a customer, companies start stepping away from them instead of toward them. They are losing their power with them. Moreover, they are no longer able to connect with those outside of the main circle of customers. That is where attrition comes from.’ The...
- White papers 2003-01-01
- Banner Advertising as a Customer Retention Tool in Customer-Relationship Management
- One of the major advances of the digital economy is the facilitation of building and managing individual customer relationships - a process usually referred to as "customer relationship management" or CRM. For a typical web site selling frequently-purchased consumer items, the most important stage of CRM is customer retention. This...
- White papers 2003-01-01
- Banner Advertising As A Customer Retention Tool In Customer Relationship Management
- From the executive summary: ‘One of the major advances of the digital economy is the facilitation of building and managing individual customer relationships - a process usually referred to as Customer Relationship Management CRM. For a typical web site selling frequently-purchased consumer items, the most important stage of CRM is...
- White papers 2002-01-01
- What, Really, is Retention Marketing ?
- While customer retention and its goals haven't changed, the entire customer retention business is busy reinventing itself from what it was just a few short years ago. Whether new technologies drove new thinking or vice versa, it's hard to say. But one thing is for sure, what retention is –is...
- White papers 2003-01-01
- Customer Attraction and Retention Through Customer Relationship Management (CRM)
- Customer acquisition is fast becoming a distant second to customer retention, and with good reason. The bottom is dropping out of the economy, and once customers defect in a downturn it's increasingly difficult to win them back with the same services they previously purchased. This article discusses the measures to...
- White papers 2003-01-01
- Marketing Strategy
- Marketing strategy develop a strategic marketing plan for your customer retention and prospecting like it save time and increase profit, increase customer retention, identify changing key driversto customer satisfaction, improve customer care effectiveness of your employees, improve technology support effectives etc.
- White papers
- Customer Retention Is Not Enough
- Every company knows that it costs far less to hold on to a customer than to acquire a new one. That's why customer retention has become the Holy Grail in industries from airlines to wireless. Yet defecting customers are far less of a problem than customers who change their buying...
- White papers
- Using E-Mail Newsletters for Customer Retention
- Businesses work hard to build a customer base, and retaining those valued customers should be one of a persons top priorities. One of the best ways to keep them coming back is to reach out to them regularly through an e-mail newsletter and let them know just how valuable they...
- White papers
- 3 Reasons Why CRM Strategies Fail
- Customer Relationship Management CRM is one of the most effective tools for improving customer relationships and therefore increasing revenue, customer satisfaction, and customer retention. Unfortunately, some CRM strategies fail. This leaves CRM vendors and their customers baffled, but there a few common reasons why a CRM strategy will fail. Some...
- White papers
- Delivering The Goods
- Sandwiched between brilliant customer acquisition and retention campaigns lies a messy minor detail: actually getting the right product to the right people at the right time. This process, known as fulfillment, is often taken for granted in discussions of customer retention. Without the satisfactory transfer of goods, there will be...
- White papers 2001-02-01
- Tips For Cost-Effective Customer Retention Management
- Making customers happy is the key to any successful business endeavor. Knowing how to give your customers what they need--when they need it--is another problem altogether. CRM makes it easier to gather information about your customers in a timely manner, giving you the tools you need to respond to their...
- White papers 2007-03-08
- Understanding Brand and Dealer Retention in the New Car Market: The Moderating Role of Brand Type
- Dealers are assumed to contribute positively to brand retention. This article argues that the type of brand moderates the effect of dealer performance on brand retention. Moreover, dealer retention is determined by different drivers for dealers selling different types of brands. To analyze the claims empirically, it collects data on...
- White papers 2004-09-01
- Account Management Solutions: Customer Retention And Growth
- Account management is the proper control of customer accounts. Its value is measured in the ability to generate sales and taking care of customer service problems. Its objective is the long-term retention of customers, particularly those who contribute most to company profits. Outsourcing account management is clearly an option to...
- White papers 2007-12-01
- The Effects of Banner Advertising on Consumer Inter-Purchase Times and Expenditures in Digital Environments
- One of the major advances of the digital economy is the facilitation of building and managing individual customer relationships. A fundamental aspect of this relationship is customer retention (i.e., repeat purchasing). In this study, it focuses on the use of banner advertising for customer retention and shopping expenditure. Using a...
- White papers 2002-06-01
- An E-Commerce Decision Support System Design For Web Customer Retention
- An advantage of E-commerce is the reduced cost in conducting transactions. However, a significant disadvantage is that many sales are lost that would not have been had the transaction been conducted person-to-person. The reasons for their early departure vary from poor quality of service, inability to find the desired product,...
- White papers
- A “Sound” Approach To Developing Employee Retention Programs Begins…With Listening!
- From the executive summary: ‘In an age where the property management industry values and embraces the concept of customer care so strongly, it is time to put the same focus on employee care. The starting point to develop a game plan for improving employee retention is to first identify the...
- White papers 2003-01-01
- Rediscovering The Customer: Turning Customer Satisfaction Into Shareholder Value
- Companies that have a strategic approach to customer satisfaction and make technology investments to support specific business and financial objectives are likely to achieve high rates of customer retention, fast growth, and increased profitability. This paper finds that to realize the greatest economic benefits and turn customer satisfaction into shareholder...
- White papers 2001-03-01
- Customer Churn Management: Retaining High-Margin Customers With Customer Relationship Management Techniques
- For providers, increased customer churn has resulted in rising customer acquisition costs and lower average monthly billings. It also has translated into a renewed interest in customer satisfaction and retention, since it costs much more for a communications company to acquire a new customer than to retain an existing one....
- White papers 2002-05-07
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