We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Customer Retention Programs?

By Christy Bieber
Updated: May 17, 2024
Views: 15,978
Share

Customer retention programs are programs designed to encourage existing customers to remain customers. In the business world, it is a well-known fact that it costs much more to obtain a new customer than it does to keep existing customers. As such, it is essential to keep existing customers happy and returning to the brand or company by offering various retention programs and benefits.

Customer retention programs are very common with cable television companies, cell phone companies, satellite service companies, and other companies who receive monthly payments from customers. For these companies, it is extremely important to maintain their customers, as each customer provides a steady influx of cash. As such, when customers call to cancel, they are generally directed to a special cancellation or customer retention department which has the authority to offer them numerous incentives, such as free premium television service, a discount on their monthly bills, or other incentives to remain a customer.

Customer retention programs are also important when a customer has a complaint about service. Having a negative encounter or experience with a brand can cause a customer to switch loyalties. As such, companies may try to offer incentives or other benefits to customers who complain or who experience poor customer service to retain or win back their loyalty. For example, a customer who sends a complaint letter is commonly sent coupons for a free replacement product, money back, or some other type of apology and offering to entice that person to remain a customer of the company.

There are also customer retention programs designed to keep happy customers happy and designed to make it worth a customer's while to remain brand loyal. For example, many companies will offer various incentives for buying a certain number of products. A sub shop, for example, may offer to give a customer his tenth sub free after he buys nine subs. The company will then give him a card or some other item to keep record of the number of visits he has and will provide the free item to reward his loyalty.

Customer retention programs are important in business for a company to maintain its customer base. Customer service representatives and staff may be trained on methods of customer retention when a customer calls with comments or complaints. Marketing departments may also develop and devise retention or loyalty programs in conjunction with other marketing efforts.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-are-customer-retention-programs.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.