Customer retention

One of the corner stones in customer relationship management (CRM) which refers to the strategies used by the companies to retain their customers by creating high level of satisfaction and keeping a vigil on those factors that may lead to dissatisfaction and ultimately to customer defection i.e., customer purchases other competitors’ products and brands. By using effective customer retention strategies a company may reduce substantially customer defection. Research has shown that a5% decrease in customer defection rate can increase profits by 25% to 85%, depending on the industry.