Having a robust and extensive customer base is an ideal situation to be in for any business trying to compete with the best and the most established players in the industry. With the current state of affairs and the unpredictable market conditions, it is difficult if not impossible to keep the interest of the target audience alive. On an average a business loses 20-25% of its client base due to poor customer relationship strategies. Gaining an understanding about the importance of customer service and retention has become essential for businesses in their quest for survival and growth. The implications of losing business can be painful and the cost of reviving interest can be phenomenal. Still, only a few businesses truly realize the importance of retention and those are ones that stay ahead of the competition.

The positive impact of the retention process increases over a period of time. Stronger client retention can help a business advance ahead of its competitors and stay afloat during tough times. The resulting effect on the long-term revival and growth prospects should not be undermined. There are various customer retention techniques that have been designed, implemented and refined over a period of time. Each method contains a step-by-step process, which will help you in achieving significant increase in customer retention, provided they are implemented appropriately. This in turn has a positive and desired impact on any business and its prospects in the long term.

Importance of Customer Retention
Stronger customer retention is vital for the growth of any business. Even a small reduction in the customer attrition rate can have a positive impact on the profitability; however, the objective is to keep working on ways and means to bring the rate down to a more acceptable level. Acquiring customer costs businesses a fortune (in terms of Advertising, Marketing and Promotions, etc.), whereas client retention might involve only a fraction of that investment. Providing satisfactory product or service might not be enough to retain a customer, largely because of intense competition. Customer retention management for a company should rely on the combination of the following:
1. Increased customer satisfaction by giving consistent product quality and customer service.
2. Motivation for continuing to do business with a particular company.
3. Willingness and drive to appeal or recommend a service provider or company.

The two components those are vital for retention and which needs to be pursued rigorously are:

1. Customer satisfaction - A satisfied and happy customer is more likely to stick to a particular business. Happy customers don't necessarily look for alternatives or substitutes.

2. Systematic and proactive customer relationship management - A proactive approach is vital for a business. Instead of waiting for customers to complain about a low-quality product or service; a proactive company goes out and tackles the issues head-on.

With techniques comes the tips that are easy and help you in making more money in your business. Follow these two tips for ultimate results in customer retention

1) Focus on your customers
Your customers will account for about 80% of your business revenue. So, if you have a customer mailing list and aren't currently using it to the best of your ability, then you're missing out on substantial profits. You should make it a goal to contact your existing customers on a monthly basis - this is the best way to market your business, and this frequent contacting will cause you to be first in their minds when they are ready to make a purchase. Or require a service.

2) Offer some sort of guarantee
Warranties and Guarantees and especially the Money back guarantees works best in improving sales and conversions. Providing a product or service with a money back guarantee will give your customers a chance to purchase with no risk involved, as the risk will be shifted from their shoulders to yours.

This is known as passing your prospects the power and nothing is more valuable and profitable to your business than making your prospects realize and utilize their power. With a guarantee, you give your prospects power, and you allow them to take their time when deciding on vendors.

I hope you will be able to use these tips to make your business grow than you ever could think possible. It's up to you to put these techniques into use so that you can make your net worth even more valuable - and I know that this is something that all of you would definitely will want to do.

Use the tips in this article to your advantage because I really think that it can help you in the long run. Once you implement the above explained techniques, there is no looking back on how much name and wealth you will make in your business. So, keep that in mind.

Good luck in your present and future endeavors!!