Abstract: Customers are always been important for the business. With the high rate of competition in every market, it is critical to retain the customer/ loyal customers. The purpose of the paper is to highlight how short term actions with bit compromise with the profit will turn into long term customer loyalty and hence long term benefit. In this paper we will be focusing on understanding the customer retention and customer loyalty, their importance to the business. After analyzing the importance of benefits, we will understand the approach of how to increase customer retention and customer loyalty towards your business. Though there will be many strategies for each of them, we will also understand what considerations should be done while deciding the best strategy for the business as different business has different scope and also their limitations too.