On average, U.S. corporations lose 10-30% of their customers every year. Raising customer retention rates by 5% can increase lifetime customer value by 25-100%. Customer loyalty is measured by their purchasing patterns and can range from undivided loyalty to indifference. Maintaining customer loyalty requires focusing on satisfaction, trust, and emotional bonding through consistent customer experiences. Successful customer retention strategies center around creating engaging experiences, transparency, education over sales, and prioritizing customer needs.

1. 1

5. 5

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7. 7

8. On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld 8

9. An average company has a defection
rate of 10%-30% per year.
9

10. Raising your customer retention rate by
5% can increase the lifetime value of
average customer by 25% -100%.
10

11. 11

12. Customer On average, U.S.
loyalty is a customer’s commitment or
attachment to a brand, store, manufacturer,
corporations lose
service provider, or other entity.
of their customers
every 5 years. ~ Reicheld 12

13. Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
13

14. Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
14

15. Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
15

16. Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
d. Divided loyalty: AAABBBAABB
16

17. Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
d. Divided loyalty: AAABBBAABB
e. Indifferent: ABCDADCBAC
17

18. On average, U.S.
Customer loyalty includes:
corporations lose
a. A behavior regarding the product
of their customers
every 5 years. ~ Reicheld 18

19. On average, U.S.
Customer loyalty includes:
corporations lose
a. A behavior regarding the product
b. An attitude towards the brand/company.
of their customers
every 5 years. ~ Reicheld 19

20. Challenge with behavior as a loyalty criteria is a
customer may repeat purchases because:
a. Convenience, price, availability, or inertia
due to habit.
20

21. Challenge with behavior as a loyalty criteria is a
customer may repeat purchases because:
a. Convenience, price, availability, or inertia
due to habit.
b. Purchases made w/out motive for choice
21

22. Attitude towards a brand is favorable that
reflects preference & commitment
expressed over time.
Includes emotional attachment
& positive evaluation
22

23. Behavior factorsaverage, U.S.
On include:
a. Choicecorporations lose
b. History with company
of their customers
every 5 years. ~ Reicheld 23

24. On average, U.S.
Attitudinal factors include:
corporations lose
a. Satisfaction
b. Emotional Bonding
c. Trust
d. Risk reduction
of their customers
every 5 years. ~ Reicheld 24

25. On average, U.S.
Customer satisfaction: A post-purchase
evaluation that results from a lose
corporations comparison
between pre-purchase expectation and
actual performance
of their customers
every 5 years. ~ Reicheld 25

26. Xerox found thataverage, rate of a 4 out of
On a satisfaction U.S.
corporations lose
5 were more likely to switch to competitor than
those that rated 5.
26

27. Emotional Bonding:
a. Brand affect, brand equity
b. Company attachment
27

28. Emotional Bonding:
a. Brand affect, brand equity
b. Company attachment
c. Feelings of closeness,
affection trust & respect
d. Technology limits emotional
bonds.
28

29. Willingness of customer to rely
on organization
29

30. Reduces uncertainty and risk
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31. Honest, fair and unreasonable.
31

32. Customer
Retention
Strategies
32

33. 1. Create A Culture
Of Buzz!
33

34. If the marketplace isn't talking about you,
there's a reason. The reason is that you're
boring. And you're probably boring on
purpose. You have boring pricing because it's
safer...You have boring products because
that's what the market wants.
~ Seth Godin
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35. 2. Consistency
builds trust!
35

36. Customer retention is a long-term game, not a
drive-by event.
36

37. Repetition, consistency & authenticity build
trust and are the foundational tools of
customer retention.
37

38. 3. Trust most
important factor to
offer!
38

39. Lack of trust is the single
greatest reason you can’t
keep customers.
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40. Trust is earned by keeping
promises.
Trust is lost by overpromising
& under delivering.
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41. When you’ve earned trust, you
can make mistakes, own up to
them and correct them
without loss!
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42. 4. Staff as customer!
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43. Your employees treat your
customers the same way you
treat the employees!
43

44. Must retain your best
employees so you can retain
your best customers.
44

45. 5. Create an open
dashboard.
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46. One-page, high-level view of
key strategic, marketing and
financial indicators.
46

47. Transparency with employees
key to company success and
vision as well as customer
retention.
47

48. 6. Golden Rule Of
Customer Retention:
Give To Get
Mentality.
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49. Those who usually give…get!
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50. Approach customer relationships by asking,
"What am I here to give?" or
"How can I serve?“
Not, “What can I sell you.
50

51. Develop a strategic partner relationship with
a view toward adding value
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52. 7. Turn your attention
to educating not
selling.
52

53. Successful customer retention
provides valuable content &
education that shows how
brand understands customer
needs.
53

54. Content marketing strategy is
critical here…providing useful
and helpful content of value.
54

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57. jhurt@velvetchainsaw.com
velvetchainsaw.com
@JeffHurt