Magazine Article | May 25, 2011

Research & Trends: Understanding Customer Retention

Source: Innovative Retail Technologies

By Matt McNaghten and Clark Passino

In reaction to the recent change in the retail landscape, leading retailers have launched initiatives to understand and drive improved retention. Deloitte conducted a series of executive interviews in June and July 2010 across retail sectors that revealed just how acutely the customer brand loyalty issue is affecting the industry and a variety of innovative and leading practices. The consensus is that customers are leaving at a greater rate overall, and unlike previous periods, those that are leaving span a greater spectrum of the customer base in terms of annual spend. We found four leading practices that can be used to evaluate the current retention situation and formulate a strategy for addressing the fundamental reasons for customer migration.