Retaining Customers

Catalog description

According to research from Harvard Business School, increasing customer retention rates by 5 percent increases profits by 25 percent to 95 percent. Marketers and business leaders must understand the profound impact customer retention has on the profitability of the organization. They must deconstruct their organizations’ retention drivers and qualify and quantify the relationship between product quality, service experience, relationship management and loyalty. Then they must act on those findings. Research studies of service companies across industries show correlations between loyalty-leading companies and performance: their topline growth rates and shareholder returns are greater than companies with average loyalty scores. Loyalty leaders also exhibit lower expenses compared to their loyalty-lagging peers. The objectives of this course are therefore to: • Recognize the impetus for retention and loyalty as a marketing discipline understanding the impact of retention and loyalty on growth and profitability • Define and apply customer retention principles o Voice of the customer o Customer experience design o Problem resolution, root cause analysis and recovery o Relationship management and customer engagement programs • Calculate customer lifetime value and model loyalty economics • Evaluate and design appropriate programs to decrease churn and increase retention • Identify structural and cultural organizational barriers to success and design interventions