Polytechnic University of the Philippines

College of Business Administration

DEPARTMENT OF OFFICE ADMINISTRATION
BACHELOR OF SCIENCE IN OFFICE ADMINISTRATION

Principles of Public and Customer Relations

Strategies of Customer Retention

Prepared by:

BSOA 2-3N
S.Y. 2021-2022
 Table of Contents

Customer Retention
1

Importance of Customer

Retention
2-3

How to Build Customer

Retention Strategy
3

Strategies of Customer

Retention
3-7

Benefits of Customer
Retention
7-8
Strategies of Customer Retention
A. Customer Retention
B. Importance of Customer Retention
C. How to Build Customer Retention Strategy
D. Strategies of Customer Retention
E. Benefits of Customer Retention

At the end of the lessons/topics, students should be able to:

1. Define the meaning of customer retention.

2. Discuss the importance of building a strategies of customer retention and being professional
in all business dealings;

3. Adopt the qualities of being a strategic business owner;

4. Identify the different strategies of customer retention applied in office administration;

Customer Retention
Staying competitive in the digital age is no easy feat. Consumers are constantly
bombarded with clever adverts trying to convince them to jump ship to another company or
service, and without a strong customer retention strategy, it just might work. The good news is,
if you’ve already convinced a customer to buy once, you’ve already done the hard part. All you
have to do next is give them incentives to stay, and that’s why we’ve put together everything
you need to know about customer retention strategies.

What is Customer Retention?

Is the act of deterring customers from defecting to another company or the actions a
company takes to encourage customers to stay. Most companies focus more attention on the
acquisition of new customers than customer retention.
It pays attention to the needs of existing customers of the business to serve them better.
Customer retention process starts with the moment the customer first interacts with business
and continues throughout the lifetime of his relationship with business. It also reduces the
promotional expenses as if the company is able to retain the sufficient number of customers
then it will not target much on new customers.
Importance of Customer Retention
Customer retention rate is calculated as the percentage of customers company can keep
till the end in relation to the number of customers it had at starting of specific business period.

The main aim of customer retention programs and activities is to ensure that customers
may continue to buy the company products and services for the long term. It focuses on
improving the loyalty of customers towards the business so that long term relationship can be
established.

Importances of customer retention in business are given below:

• Increases Revenue
- Customers become loyal to the business and make repetitive purchases with
business. They will explore and use different products and services of the
company. Loyal customers are even ready to pay premium prices for the
company’s product. This increases the overall profitability of the business.
• Reduce Promotional Expenses
- Cost of acquiring new customers is much more than the cost of retaining the
present customers. Company should focus on the needs of its present customers
to serve them better and make them loyal ones.
 Enhances Brand Image
 - Best customer services companies have more chances of acquiring new
customers. New customers easily get attracted to such businesses seeing their
goodwill and customer loyalty programs. By serving their customers in a better way
companies are enhancing their brand images.
 Valuable Feedback from Customers
- They develop a better level of understanding with their customers. Customers also
develops a sense of belongingness with them and provide them with valuable
suggestion and feedback. They suggest ways how they can improve their services
to improve their customer’s satisfaction.

How to Build Customer Retention Strategy

The best customer retention strategies are formed around business goals and insights.
For example, one goal may be increasing customer loyalty, and in this case, you’d want to pick
strategies that focus on this. You may want to signal that your service is consistent and reliable
with solid brand awareness.

If your customers come to your business because you offer the best prices, then your
customer retention strategy should revolve around reminding them of this and get straight to
costs! Whatever niche your business falls into should be reflected in your customer retention
strategy and knowing what your goals are will help you pick the right strategy for your business.
1. Surprise Gifts and Discounts

- Customers are people and people love to feel appreciated. One way you can show
your customers that you appreciate them is through surprise gifts and discounts.
You can offer them a discount on products they frequently purchase, along with a
short and sweet message from the customer service team telling them why they
are receiving the surprise. The exact wording of the message will depend on your
company brand and style, but the message should make it clear that they are
getting this discount for being a loyal customer.
- Offering surprise gifts and discounts not only encourages customers to buy again,
but it can also elevate your brand. Customers who receive surprise gifts often post
them to social media, increasing your exposure which can help attract new
customers to your business. Master Card expertly used this strategy to reward
loyal customers by sending cardholders free surprise gifts of cupcakes, concert
tickets, and VIP celebrity meetings.

2. Provide Excellent Customer Service

- This may seem a little obvious at first glance, but you need to
consider what a company considers excellent customer service doesn’t
always match up with what the customer thinks is excellent customer service.

Here are a couple of ways you can boost your customer service to the next
level:

• Provide a cohesive and consistent experience – a customer should always feel like
they’re getting the same care and attention whether you’re talking to them on the phone,
via email, or on a live messaging service.
• Provide multiple contact channels to accommodate a range of communication
preferences.

• Route the right agents to the right customers by assessing the customer’s needs and
assigning the agent most skilled in that area.
 3. Customer Surveys
- A good survey should have a mixture of multiple
choice questions and free text answer fields to allow
the customer to express their opinions more
thoroughly where needed.
- Send your customers a quick online survey to
complete to gain a better insight into what’s working, and what isn’t.
You’ll never please every customer on every issue, but surveys can
help you identify patterns that you’ve missed.

4. Be active in your community

- Customers are becoming increasingly

socially conscious, and that means you
should too. Customers pay attention to
whether your organization gives to charity,
whether the employees take part in
community improvement schemes, and
who you engage and partner with. You
don’t necessarily need to have an elaborate
Corporate Social Responsibility (CSR) plan
or donate to charity, there are also simpler
ways to show you care about the community.

- The key is to be creative with your brand. Customers don’t want to feel like
they’re dealing with a cold corporate entity, they want the companies they
buy from to feel well-rounded, sincere, and like a real person.
5. Keep Customers Informed

- Make customers feel a part of your wider team by keeping

them up to date on new developments such as new
product lines, new partnerships, or exciting milestones for
the company. You can do this through a monthly
newsletter over email.

6. Customer Onboarding
-
Onboarding will vary depending on your
company’s niche, but the aim is to educate a
customer about your products and your
brand. You don’t want to overwhelm them
with a wall of text about your business
philosophy but being too quiet can make the
customer feel ignored. When a customer
buys one of your products, you can send
them an email with a short tutorial on how to
use it and the details of the customer service
team, so they know who to contact if they have any issues.

7. Use Gamification
- Gamification is a fun way to
reward loyal customers for
benefitting your company,
and it’s a very successful
strategy. You can offer
customers a discount for referring a friend, you can award them redeemable
points for each purchase, or you can give them a visual appreciation boost in
the form of a badge.
8. Be Personal

- You’re collecting lots of data on your customers, so use this data to improve their
experience. Before reaching out to a customer you should know how they like to
be contacted, what they have bought previously, and what previous interactions
looked like. Customers don’t want to feel like just another number, and they will
become frustrated if they have to repeat the same information over and over.
- By offering a personalized experience they will feel like a part of your team and
associate your company with a smooth and easy experience.

Benefits of Customer Retention

 Loyal Customers are More Profitable
- They’ll be more open to price increases, but be cautious not to raise prices simply
to see how long they’ll stick around. Lifetime revenue is the end goal, not just today’s
revenue.
 Your Brand Will Stand Out from the Crowd
- Put your consumer hat on, and consider how many brands you interact with that
actually seem to value your patronage. Most brands focus on acquisition, which makes
the retention-centric among us stand out even more. The ones that earn continual
engagement are those with whom they feel an emotional connection with on some level.
 You’ll Earn More Word of Mouth Referrals
- Your loyal customers will be your best source of new business. Despite all the
efforts into online and mobile marketing and social media, people are still most strongly
influenced by referrals from friends and family.
  It’s Better for Employee Health
- Customer retention is basically relationship building. Good relationships make life
better for everyone. They’re mutually beneficial. Sales, on the other hand, are
transactional.
- To a business, being relational makes everything easier. Customers are less likely to
fly off the handle at the first sign of distress. That protects your revenue and makes life
easier on your employees - who play a huge role in customer loyalty.

References:
- Moore, K. (n.d). Help Scout. Retrieved February 19,2022, from
https://www.helpscout.com/blog/customer-retention-strategies-that-work/?
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bU9akSXE
- Patel, S. (2022, February 18), 15 Effective Customer Retention from Top Brands.
Reve Chat. https://www.revechat.com/blog/customer-retention-strategies/?
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bk20K0LQ
- Kulbyte, T. (2021, May 04), 7 Unique Ways to Increase Customer Retention (and
Increase Profits!). SupperOffice. https://www.revechat.com/blog/customer-retention-
strategies/?
fbclid=IwAR3lJGUHRvh7GIENdU7e0HaHFpwgz8VdJWlPXhcKkbbktR1vfb-
bk20K0LQ
- Mceachern, A. (2020, July 09), Customer Retention 101: Grow your Business by
Selling More to Current Customers. Shopify Blog.
https://www.shopify.com/ph/blog/customer-retentionstrategies?
fbclid=IwAR274ZTXD15KqGHniiL4WIl4Ch5FRCdfsnHjqZivYghFh6r0hH6xMTBmjns
- Commbox. (n.d.). 8 Best Customer Retention Strategies Your Business Should
Use. https://www.commbox.io/8-best-customer-retention-strategies-your-business-
should use/?
fbclid=IwAR004_VLIElYpwl4x2ZOAKH2Fsw6yJJoKiHXqWWsmjfnOVNutuAkARqgN
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