Customer Retention Strategies and Programs

Jesse Hopps

You’ve probably heard business experts say over and over again that loyal customers are the key to a long and thriving business relationship. When you have customers that are dedicated to choosing your product over the competition, no matter what new ad campaigns or gimmick offers they might provide, you’re in a good position to achieve long term success in your respective market. Many new business owners and marketing managers are desperate to learn what makes up a good customer retention strategy, and how they can implement one in their own company.

What is a Customer Retention Strategy?

A customer retention strategy is generally part of a long term commitment that companies make to ensure that they are providing the goods and services their customers are looking for; thereby reducing the number of opportunities for customers to consider switching to another brand of product or another service provider. It’s important for managers and business owners to realize that the customer retention process starts from the very first time a consumer purchases a product or service, and continues all the way through the entire relationship.

Benefits of a Customer Retention Strategy

  • Increased Communication With Your Clients – When you are constantly touching base with your loyal customers, asking them if they are satisfied and inquiring about what your company could be doing better, the level and quality of communication that you have with them will go way up. Customers will feel confident that you’re interested in their opinion, and they will be more likely to defend your brand even in the face of rising prices and stiff competition.
  • Free Advertising – When you reward your customers for choosing your company or products year after year, they will likely be encouraged to tell their friends, neighbors and family members how satisfied they feel with your organization. This word of mouth advertising is invaluable, and with the right customer retention strategies, you’ll be getting it for free.
  • Guides Future Product Development – When your customers know that you value their opinion and listen to their suggestions, they are far more likely to provide you with feedback about your current product line. If there is something that they wish you would offer, or something that they’re currently buying from a competitor but would rather purchase from you, they’re much more likely to tell you if there is a working customer retention policy in place.


Good customer retention policies can be expensive and time consuming. The result, however, will be a happy customer base that keeps coming back year after year. If you’re trying to get a better understanding of your customers needs/wants, try using our Customer Satisfaction Survey to get a benchmark of current customer satisfaction levels. If you’re looking for other great ideas, visit us @

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