Which of the following is an effective customer retention strategy?

Building a relationship over time is an effective customer retention strategy because it fosters trust and loyalty between the customer and the business. When businesses take the time to understand their customers’ needs, preferences, and behaviors, they can create personalized experiences that meet and exceed those expectations. This ongoing engagement helps to keep customers satisfied and encourages them to continue doing business.

A strong relationship can also lead to customers becoming advocates for the brand, as they are more likely to share their positive experiences with others. Long-term relationships often translate to repeat purchases, reduced churn rates, and ultimately, increased revenue for the business.

In comparison, occasional discounts may attract customers temporarily, but they do not necessarily build lasting loyalty. Ignoring past behaviors and preferences could alienate customers, as they may feel undervalued or overlooked. Choosing not to follow up can lead to missed opportunities to address customer concerns and foster loyalty, further hindering retention efforts.