The document discusses various strategies for improving customer retention rates. It outlines factors that influence customer retention such as service quality, satisfaction, and loyalty. It then describes several models for understanding the customer retention process and analyzing customer value and segmentation. Finally, it provides examples of tactics for enhancing retention rates such as customer relationship management, targeted programs, and measuring retention through metrics like lifetime value and RFM analysis.

1. By- Avinash Kumar [email_address] Retention strategy

9. The Customer Value/Retention Model Customer Attraction Customer Retention Shareholder Value Customer Value Customer Satisfaction Loyalty Business Performance © Weinstein/Johnson, 2003.

11. Customer Satisfaction, Loyalty and Retention Model Highly Satisfied Satisfied Dissatisfied Highly Loyal Loyal Disloyal Retain Defect

12. A Customer Loyalty Framework Multiple loyalty Situational loyalty Limited loyalty No Loyalty Some Loyalty Complete Loyalty

20. Butterflies: Good fit High profit potential Transaction satisfaction Milk active accounts Cease investing Strangers: Little fit Lowest profit potential Make no investment Max transaction profit True Friends: Good fit Best profit potential Consistent communication Attitudinal & behavioral loyalty Delight customers Barnacles: Limited fit Low profit potential Measure size and share of wallet Low share, up- and cross-sell Small wallet, strict cost control Transaction Relationship High profit Low profit Classification of Customer Loyal Segments

37. Questions are welcomed. End of the topic