The Dimensions of Customer Retention

This post is part of a series on the 7th Customer Lovefest held at the Tower Club Makati last November 15-16, 2018.

Sherwin John Sario, Assistant Loyalty Program Manager of the Metro Retail Stores Group discussed about Customer Retention Strategies that keep customers from coming back.

Customer Retention is just like how will you make your partner stay with you. Customers do not stay due to bad experiences, reasons and replacements. Companies should always consider their competitor’s loyalty program in order for them to make their customers stay with them.

According to the KPMG Retail Industry Outlook as cited by Sario, 68 percent of why customer leave a brand is because the customer believes that they do not care about them; 14 percent shows that customer is dissatisfied with their service; 9 percent shows that the customer is persuaded to go to a competitor; 5 percent shows that the customer gets a friend to provide the service; 3 percent shows that the customer leaves the market and 1 percent, the lowest factor, is that a customer dies.

Dimensions of Customer Retention

Sario described Customer Retention into four dimensions:

  • True Loyalty (Optimize the Experience)
  • Cult Loyalty (Optimize the Tribe)
  • Inertia Loyalty (Optimize the barrier to exit)
  • Mercenary Loyalty (Optimize the Incentive)

With these in mind, he suggested Loyalty Marketers to take note of these pointers:


Companies should have General Marketing Paradigm wherein you should know your customers. However, a truth in Loyalty Marketing is to know customers beyond their information fields. Companies should know their customers’ moments and not just their basic information.


After knowing their moments, that is the time they will build Relationships. Know how to relate to your customers’ moments.

Customer data will turn into waste if business will not listen, understand and connect with them. Loyalty Professionals can determine the number of inactive members, but they must know the reasons why they are inactive.


Having known the reasons for a customer’s inactivity, businesses need to engage with them. Engagement is the main factor for them to become loyal. Know how can you make them addicted to the brand. Know how to make them want your brand even more for them to stay.

Know their moments

To know their moments, companies should also learn to identify customer levels. It will be dependent to the program scheme and to the industry the company belongs to.

There are many approaches in Loyalty Marketing, such as the Macro-to-Micro approach, Tradition retention (with emphasis on Frequency and Transactions), Modern Retention (with emphasis on Emotional Business to Consumer (B2C) Engagement) and Tiered Schemes (from Silver, Gold to Platinum).

Employees should apply transitional to relational approach to customers when introducing loyalty programs such as loyalty cards – and always emphasize the benefits to the customer.

Build your Real-ationship

In building a real-ationship with customers, business should create relevance that delivers best offers:

  • Identify partners / offers that can draw members’ interest such as their hobbies, entertainment, etc.
  • Create offers that can encourage member usage.
  • Select channels based on member preferences
  • Emotional ideas also drive Customer Retention Loyalty such as compassion, respect and nostalgia.

Make them addicted to your brand

To make your customers addicted to your brand, be there wherever your customers are.

Proximity is one of the factors that customers consider. If your brand can be seen everywhere, there will be a higher chance that customers cannot forget your product. You should also provide exclusive but inclusive offers. For example, provide offers to your aging members that can also become source of acquisition.

You should always remember that loyalty programs should not make your new customers intimidated by your loyal customers, instead it should inspire them to aspire more. You should also reward social shares, as they also work as your influencers.

To cap off, Sario pointed out that Data Collection and Analysis will always be vital in the loyalty process. Therefore, companies should start investing on Loyalty Infrastructures that can straightly record and give comprehensive analytic about customer loyal behavior.

More ideas on improving your businesses’ Customer Experience await you at the 8th Customer Lovefest this November 14-15, 2018 at Discovery Primea, Makati City. For more information, call us at (+632) 633-0153 / 643-3887, text us at (+63) 920 920 2532 / (+63) 920 981 4376, email us at / or visit us on Facebook.

Written by Michelle Camacho

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