1. Abstract
Purpose: This research paper gives an insight on the factors affecting customer retention, customer retention is now known to be a key factor which can alter customer’s decision on repurchase of a particular product/ service. This research paper discusses relationship marketing, customer loyalty and customer satisfaction as basic factors affecting customer retention.
Design/ Methodology/ Approach: The data for this study was gathered through a questionnaire distributed to population in Islamabad and Rawalpindi. The results were obtained by testing the hypothesis with regression.
Findings:
Research Limitations: The limitation for this paper is that data was gathered only for telecom industry. This research can further be done on apparel and FMCG sector.
Keywords: Customer retention, Customer loyalty, customer satisfaction and relationship marketing.
2. INTRODUCTION
Customer retention is a very old phenomenon companies know that in order to generate greater revenues they need to retain the old customers, the great thing about retaining old customers was that they were loyal to the company (product, service) and would not think to switch to some other product very easily, but however with the passage of time, entry of competitors and removal of barriers for global business need was felt to gain knowledge about retaining the customers. It was well explained by the Pareto model that 80% of the business revenue was generated due to 20% retained customers and due to their re-purchase, hence proving that it is far more difficult to attain a new customer than to retain an old one.
The purpose of this paper is to examine the different factors effecting customer retention. Customer retention is ...
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High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
We will track customer retention rates by using advanced point-of-sale systems that use our customers’ information, such as phone number, address, etc., to track purchase
However, the marketer must act like an integrator where they must produce technical capability with the market requirements and the marketer should be invented to bring the consumer into organisations. Furthermore, the consumers associate with the firms as members for the reworking and expansion of commodities. Therefore, the associations are measured as the important point for the source of consumer choice and firm variation. It is noted that the relationship promotion comprises in using the one-on-one communication in order to getting the loyalty of clients. These relations might be simply enhanced in the organisations if the promotion is part of everyone's work picture that is beginning from receptionist to board of directors (Basole & Rouse,
Customer churn refers to the periodic loss of customers in an organization. Customer churn is a very common problem of every organization all over the world. In the competitive market it’s a very big challenge for any organization to retai...
Grönroos, C. (2004). The relationship marketing process: communication, interaction, dialogue, value. Journal of Business & Industrial marketing, Vol 19, Issue: 2, 99-113.
The definition of customer retention is the number of customers doing business with a firm at the end of a financial year expressed as percentage of those who were active customers at the beginning of the year. Besides, for customer development is the process of growing the value of retained customers.
Customer loyalty has been the topic of discussion for many organizations in today’s healthcare industry. Often times a customer’s loyalty is a key factor when it comes to retaining customers. Healthcare providers and clinics should focus on satisfaction too however in order to retain their customer base, they should measure customer retention report extremely careful. According to the text, Goetsch & Davis (2014), “To retain customers over the long term, organizations must turn them into partners and proactively seek their input rather than waiting for and reacting to feedback provided after a problem (Goetsch & Davis pg. 104.) This statement alone does not mean that customers will remain with a particular provider or clinic but it can be used as a starting point with customer retention.
... level. Factors such as the quality of customer service and customer loyalty have gained much importance over the last decade and have become amongst the most important factors to the success of retail organisations. Major retailers are constantly striving to identify new schemes to maximise customer loyalty and new ways to identify customer’s desires. This paper has provided a critical analysis specifically aim at explaining factors such as customer loyalty and how it could be maximised and how the quality of customer service could be maximised. From my research its evident that quality control is critical in achieving the best customer service possible in turn leading to customer satisfaction which leads to customer loyalty. Consistent appraisal of customer service quality is something what should be done to maintain & improve the customer service quality levels.
Richards, K., & Jones, E. (2008). Customer relationship management: finding value drivers. Industrial Marketing Management, 37, 120-130.
Customer relationship management has become the marketing buzzword of the past two decades, with business-to-business firms jumping in, many without really being certain of what they hope to achieve from it, and oftentimes being disappointed with the results. Gummesson (2004) describes CRM as "the values and strategies of relationship marketing with particular emphasis on customer relationships- turned into a practical application. " CRM has become a necessity to successfully and profitability manage customers and a firm’s relationship with them, with the market reaching a value of approximately $11.5 billion in 2002. Xu et al. 2002). The 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Second
Ryals, L. (2005). Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of Marketing, 69(4), 252-261. doi:10.1509/jmkg.2005.69.4.252
Task 1: Critically evaluate the key concepts/theories on the topic of the effectiveness of loyalty programmes on customer loyalty
Svend Hollensen (2003): “Marketing Management a relationship approach”, FT Prentice Hall Financial Times, pg 9-10
Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.