Strategies for Customer Retention and Business Growth: Report

This report analyzes customer retention strategies, emphasizing the importance of retaining customers for long-term business success. It defines key metrics such as retention rate, customer lifetime value, and return on investment (ROI), providing calculations for the years 2017, 2018, and 2019. The report highlights the need for appropriate segmentation techniques to gain a competitive advantage and discusses retention strategies specifically for independent retailers, including click and collect, loyalty reward programs, mobile payments, community building, and SMS/email campaigns. It also addresses factors affecting the implementation of marketing plans, such as political and global factors, and concludes that customer retention rate is significant for future business performance. The report references academic sources to support its analysis of customer relationship management and its impact on company performance.

Task 3
Retention Strategy

Introduction
It is essential for a business organization is to
create brand awareness and tries to make product
popular in the market. the sales representative
responsible to interact with customer and make
their product and services in fulfil its needs.

Retention rate
This ratio is defined how effectively an Frim can
sustain its customer for long time. For this
purpose, a company can use various methods such
as identify desired and profitable customer
behaviour,
create advocates so that products can be
passionate in front of various customer.

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Particulars 2017 2018 2019
Retention
rate=((E-N) S)
*100
75% 80% 85%

Life time value
This is the one way to analyse marketing cost to
calculate life time value of the customers. It is the
revenue which a customer will earn in his life
time. It is also used in market budget.

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Return on investment
ROI is like a profitability ratio which calculate
or measure profit on investment. For example, if
a person invests in property so he can calculate
his return on investment in a specified time.

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Particulars 2017 2018 2019
ROI=
(Net profit –
Amount
Invested) /
(Amount
Invested)
150% 180% 200%

Appropriate segmentation techniques
A business organization is required that to design
and develop various tools and techniques which
helps to provide competitive advantage.
Segmentation is related with the divination
market in to
small parts and offer products accordingly

Retention strategies for independent
retailers
• Click and collect
• Loyalty reward programme
• Offering mobile payments and digital receipts
• Create community, events and attractive visual and video branding
• SMS and email campaigns
• Hold and generate contact
• Give free products
• Mobile convenience

Effective retention strategies
Every business organization is required to retain
its customer in the long run in order to maintain
its market share and profitability in the market.
therefore, various organization focused on
customer relation and make their business
ompare as compare to other firms.

Factors affecting implementation of marketing
plan
Business environment is too complex and
competitive which needs careful analyses and
evaluation. There are various factors which can
be micro and macro influenced marketing plan.
• Political factors
• Global factors