Customer Retention (v): the maintenance of the patronage of people who have purchased a company's goods or services once and the gaining of repeat purchases. Customer retention occurs when a customer is loyal to a company, brand, or to a specific product or service, expressing long-term commitment and refusing to purchase from competitors. -- BNET Business Dictionary

Are you running toward your prospects and walking away from your clients?

Ensuring that you keep the customers you currently have is Good Business 101, but in the thick of a bustling day, it’s easy to lose sight of their needs and expectations. When the dust finally settled, how many times have you looked up to find that the customers you thought you could count on weren’t there anymore?

Not all customer attrition is undesirable. Taking stock of your client base and rehousing unprofitable customers can be very healthy for your business. But if you discover that your company is losing more than 5% of your profitable customer base each year, you have an opportunity to increase your bottom line at your fingertips.

Customer retention isn’t an activity you undertake from time to time, it’s a culture defining philosophy. Built on the premise that the cost of keeping one customer is less than the cost of replacing them and the benefit infinitely more, every member of your organization dedicates him or herself to doing more than just satisfying your customers. They strive to delight your customers. More important than just providing excellent service, your staff looks for ways to bring added value to your customers.

In dollars, what does customer attrition cost your company?

What are the intangible costs of customer attrition to your company?

What does “value added” mean to your customers?

Are you taking advantage of all of the “low hanging fruit” opportunities in your customer base?