We define customer retention as an activity which has three goals:
● the repetition of contracting,
● the renewal of the current contract,
● the extension of the duration of the current contract (by, for example, the reduction of early terminations).
We suggest the application of two different methods. The Short Term Customer Retention Index (SRI) measures, for example, the efficiency of marketing campaigns; the Long Term Customer Retention Index (LRI) is a useful tool to measure the efficiency of the whole company:
● customer service,
● brand value,
● product supply.