What Is Customer Retention Management?

Customer retention management is a kind of marketing that takes customers as the core in the process of customer relationship management, conducts systematic customer research, optimizes the organization system and business processes, and retains valuable customers to improve the efficiency and profitability of the enterprise. Management strategy. Customer retention management strategy is a comprehensive solution that takes into account the interests of both the enterprise and the customer. It adapts to the update of marketing management concepts, attracts and stabilizes the needs of customers, effectively differentiates the customers of the enterprise, and firmly grasps the most valuable Customers, so as to get the most benefits.

Customer retention management

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Customer retention management is a business

The significance of customer retention management research to the implementation of customer relationship management strategies in enterprises is: through customer retention management research, it helps companies to form a unified customer contact channel and comprehensive customer service capabilities, thus becoming the core elements of enterprise customer relationship management; Customer retention management research will play an important role in guaranteeing and promoting the strategic decision-making ability and overall planning of the company's customer relationship management; Customer retention management research will promote

1. Customer retention management model

The customer retention model is a unique system structure composed of a variety of variables. Understanding and grasping the relationship between these variables is very important to improve the accuracy and effectiveness of customer retention. Based on my own understanding and reference to relevant materials, a theoretical model of customer retention was established (see Figure 1). Here, to help understand and determine the various influencing factors on customer retention, as well as the degree of correlation between customer retention and these factors, customer recognition of the product, etc., these indicators constitute the evaluation of customer retention management assessment. Indicator system.

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1.Adhere to the customer-centric philosophy

The company takes the customer as the center, manages the customer as an important strategic asset, and systematically studies the customer to improve the service level and retention of the customer. Implement different countermeasures for customers of different values to bring long-term stable profits to the enterprise. Senior management and business management personnel must establish, adhere to, and practice this concept in order to achieve the goal of winning competition and growing rapidly. Haier's large sweet potato washing machine is a typical case. Rural consumers reported that Haier's washing machine often blocked the water outlet when washing sweet potatoes. The market needs to develop. As a result, washing machines that can both wash clothes and sweet potatoes came into being. Although the sales of large sweet potato washing machines are not large. But it truly reflects the customer-oriented concept of product development.

2.The enterprise must establish a business system based on retention management (see Figure 3)

In this business system, companies provide value that exceeds customer expectations and comprehensively improve customer satisfaction. The retention rate or persistence of the customer was reliably measured through retention studies to determine the customer's repurchase behavior. So as to ensure the long-term business development and profits. With the establishment of good relationships with new customers, the retention of more old customers also increases the work pride and retention of corporate employees. Also willing to strengthen customer retention through better service. This virtuous business system cycle. Promote enterprises to effectively increase market share, reduce costs, and obtain more profits. Customer retention surveys should be repeated on a regular basis. The results of the surveys will directly affect all aspects of corporate strategy and have a huge impact on corporate profits. As a consultant from Bein Consulting stated in a Harvard Business Review article, companies with zero customer churn are extremely profitable. They believe that if customer churn is reduced by 5%. Profits of credit insurance companies will increase by 25%, and profits of bank enterprises will increase by 85%. Obviously, the lifetime value of customers is huge. The company aims at zero customer churn, and regular and frequent customer retention surveys and evaluations are very important.

3. Establish comprehensive customer database and perfect customer relationship management system

To get customers. A detailed and effective database of customer information should be established. Track customer transactions through a database. And use database technology to carry out extensive statistics, analysis and data mining. Can effectively measure customer satisfaction, loyalty and churn status. The point of contact between the enterprise and the customer should never come from a single customer and service staff contact. This narrow contact will make the enterprise vulnerable to the distortion of information and produce inaccurate judgments. Only through a sound customer service system. Only by strengthening communication with customers and cherishing the relationship with customers can we truly hear the voice of customers.

4. Establish internal staff training and communication system

We often say, "Employees are the most important capital of an enterprise." However, few people can really understand the meaning of employees to the enterprise. In the era of knowledge-based economic innovation, employee dedication has become the key to the development of enterprises. As the carrier of knowledge and skills, human resources of enterprises have become the most fundamental factor for creating value. For companies, employees often mean higher profits and productivity, a more perfect brand and social image, and more stable customer resources, which means greater revenue.