Customer Retention
Term from the CRM Glossary
Definition
Customer retention in CRM refers to all measures and strategies aimed at building long-term relationships with existing customers and strengthening their loyalty to prevent repeat purchases and churn to competitors. This is achieved through positive customer experiences, excellent service, individual offers, and loyalty programs, supported by a CRM system to increase customer value.
Goals
- Ensuring Repeat Purchases: The goal is for customers to repeatedly purchase the company's products and services.
- Conversion into Advocates: Ideally, loyal customers become fans and ambassadors who recommend the company.
- Increasing Customer Lifetime Value (CLV): Long-term customer relationships increase the value a customer brings to the company over the entire duration of the business relationship.