Paper on Customer Retention

Many different alternatives exist to face the customer retention problem. One good alternative would be to use and develop a strong customer relation management strategy. With the information collected from the customer loyalty system, the company needs to develop a customer relation service. To improve the perceived value of the brand, the company should create a very developed customer service with a dedicated customer service number and an easy way to order cars. In the airports and main retail places, the company should develop a specific office/desk dedicated to the premium customers and those who have loyalty cards. So that, the consumers don’t lose time and can enjoy of a best quality service.

Retention is a reflection of a customer’s willingness to remain with a particular company’s service or products and is useful to measure customer loyalty. The relationship

The aspects of business success that Jones (2012) chooses to study are that of customer retention and employee satisfaction. Being able to minimize the loss of customers correlates to improved financial

Customer Satisfied can become loyal and loyal customers may also lower marketing costs since retaining customers is significantly cheaper than attracting new ones. (Johnston and Clark 2008)

When you build a strong, ongoing relationship with a customer, there is a personal connection made. And it is less likely that a customer is going to do something to jeopardize a close business relationship.

Customers enable the organization to treat each customer in a different way on the basis of the contribution they make towards the firm (Kleinaltenkamp & Wengler, 2007). The analysis of customer lifetime value aids the organization to rank and order customers on the basis of their contribution to organization’s revenues. It also helps the organization to determine as to how much it can invest in retaining customers to gain positive returns on the investment.

Customer retention/attrition is estimated by the Company to arrive at the adjusted revenue, however, no support is provided for the 75% of probability of retention.(Exhibit XI) Retention rate can be expected by conducting statistical analysis of historical customer turnover and revenue growth rates. When historical customer data of sufficient quality is not available, it may be necessary to rely on management estimates or industry data. Probability of retention is

But, as any mom-and-pop business will tell you, it is the direct relationship with their customer that is all-important when it comes to long-term customer loyalty. "Knowing the customer" is the bottom-up approach practiced by the best of small operations-ones that know their customers well, even personally. While this practice is intuitive to small companies that life and work in the same community where their customers live, for national and international companies such

One of the most expensive and difficult tasks facing any business is acquiring new customers. Acquiring a new customer can cost five times as much as retaining an existing customer. Research has shown that 2% increase in customer retention can decrease costs by as much as 10% for a business. To retain current customers, businesses engage in relationship marketing strategies to continually attract repeat

| A recent survey found that 84% of “satisfied” customers will “jump ship” for a better deal if the opportunity arises. With the marketplace becoming increasingly commoditized, customer retention has become a critical part of business strategy. (E)

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?

In the last 20 years, more and more emphasis has gone into investigating the core components of customer loyalty and seeking to single out the factors that cause customers to return. Studies have consistently demonstrated that clients who feel that they can trust the business or worker to care for them and to be honest will reward the business by their devotion even, occasionally, at cost to themselves. Han et al. (1993) rated trust as the most important characteristic in any business relationship, whilst Kumar et al. (1995) saw trust and commitment as being indistinguishable one from the other. When client learns to trust producer, commitment, almost inevitably followed.

Building a loyal customer base is a primary goal for companies of all sizes around the world. The benefits of having a customer retention department were assessed during this research. To achieve this goal, companies need a systems infrastructure that provides detailed information on each customer’s activities and allows them to proactively analyze and anticipate customer dissatisfaction. Well-trained and empowered agents can retain the vast majority of their customers. The challenge is to give agents the support, information and flexibility they need to get the job done, while having a management team in place to

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do