This document discusses customer retention and loyalty. It notes that customer retention aims to reduce customer defections by maintaining relationships from the first contact. Loyal customers buy more and promote the business. High staff turnover makes it difficult to build strong customer relationships and retain customers. Studies show customer retention can impact profits more than other factors. Maintaining 95% retention leads to 15% growth compared to only 5% growth with 85% retention. Superior retention increases profits by spreading acquisition costs over many years of customer lifetime value. Building a Facebook page can increase customer loyalty by 36% through more visits, spending, emotional attachment and psychological loyalty to the brand. Customer referral programs are an active retention strategy.