Customer retention analysis refers to the assessment of a company’s customers and to find out how many customers the company can retain. It seeks to find out how many customers continue to take services from the company and how many leaves. It is necessary for a company to retain old customers, rather than gaining new and therefore this analysis is indispensable for any company or business house.
Sample Customer Retention Analysis:
Customer Retention Analysis of Joy’s Salon
Report prepared by: Mr. Allan Smith, Business Analyst.
Report submitted on: 1st of January, 2011.
This customer retention analysis is prepared by the business analysis team of our company, to find out the customer retention rate of the company. It is prepared with the aid of certain tools like invoice assessment, feedback forms, survey sheets and other related methods.
Objectives of customer retention analysis:
- Assess the shop’s ability of customer retention.
- Find out the limitations and drawbacks of the management.
- Get further advice from the analysis team, on how to attract and retain more customers.
Tools used for retention analysis:
- Past invoice record assessment.
- Customer survey sheets.
- Online feedback forms.
- Customer satisfaction rating.
The customer retention analysis is prepared over a period of one year. The statistical reports show that the retention rate of the customer is good. However the shop has to thrive for a better result. The churn rate is 12 % in a year. The retention cost of the company has to be increased to ensure maximum customer retention. A detailed analysis and suggestions is enclosed herewith the copy of this report, for the company’s perusal.
Mr. Allan Smith,
Business Analyst, Joy’s Salon.