Customer Retention Strategies

Introduction

In any kind of business, customers or clients are important part of bringing the profit back to the enterprises. In various industries, whether in production or services, the customers always play an inspiration and became part of the long-term goal of the organizations. This is because of the increasing uncertainties in the market and the rapid changes that heightened the competition.

Background and Problem Statement

Customer satisfaction can be also equaled with the customer retention. Logically speaking, when the customers are satisfied with the products or services by the organization, there will be customer loyalty and maintain the relationship they had. The retention of the customers means everything for the organization and it is also important as part of the promotional strategies. Thus, strengthening the customer relationship can bring the enterprise far. However, not all the customers can deliver the good fortune for the organization. First, there should be an effort placed for the customers to achieve their loyalty and creating the relationships. And then, maintaining the relationship to increase the profit gain and advantages of the organization. But the question is what are the most applicable and appropriate customer retention strategies of the organizations?

Research Aim and Objectives

The aim of the study is to collect the effective strategies that will lead towards the customer retention. In order to have access in all the possible information, there are three objectives that can guide the entire study. First is to determine the recent customer retention strategies being implemented in the corporate world. Second is to compare the strategies along with the business models and theories in order to justify the customer retention strategies being applied. And lastly, is to measure the effectiveness of the customer retention approach in the middle of challenges and changes within the business environment.

Literature Review

In the telecommunications industry, the customers are their focus because through the existing customers, they can manage the life of the business. Through the edge of the technology, it is easy for the personnel to get in touch with their clients and added to that, is the programs that readily made and accustomed to its functions to match the work of the employees. Most of the organizations are carful in hiring their employee to adequately provide the customer benefits. Because of the great belief of the corporate leaders that the customers can bring them the advantages in the competition, the continuous product development is fashioned (Jacada Fusion, 2008). Meanwhile the other industries such as the manufacturing sector are aware about the various complexities. Manufacturing industry poses many strategies and various applications of managerial approach to have a balance in their operation. From the pooling of resource up to utilizing the materials are part of the operations. But what is important before setting the processes is to understand the requirements of the customers. This will help them create the product according to what the preferences are. Knowing what should be result is easy for the production to produce the essential steps that is suitable for the foreseeable result. For example in case of Vodafone, the measurement of the long success is through creating the trend on the idea of customer satisfaction. It seems that the key to the success of all the organization is to target the customers’ needs and wants satisfactorily and Vodafone is not oblivious on that. The business indicators might tell different in the marketplace and the wise business leaders turn to market in where the true competition is set. Other organization includes the customer satisfaction as part of their objectives to achieve the customer retention. And through simply catching the customers’ interests, the customer retention starts (Gitman & McDaniel, 2005). In service-oriented industry, like the McDonalds, the plans and creation of products and fashioning the services are perfectly for the customers. In the long-run, there is a continuous policy development in order to improve the industry (Sampson, 2007).

Methodology

The suggested method in the study is the use of comparative case study. Since the study is seeking for the most applicable solution, the use of the case studies from the various businesses and industries are preferable. Through the use of the comparative case studies, the study can reach to the level wherein the organizations experience the downfall and their comeback in the market through the help of the customers. It is a great opportunity to examine the case studies for they convey a lot of information and insights which is useful for the study.

References:

Gitman, L; & McDaniel, C., (2005). The Future of Business: The Essentials. Mason, Ohio: South-Western.

Jacada Fusion (2008) Communications Industry Report: Customer Retention Strategies in Action [Online] Available at: http://www.jacada.com/whitepapers/pdfs/45.100.0206-Customer-Retention-Strategies.pdf [Accessed 02 July 2010].

Sampson, S.E., (2007) A Unified Services Theory Paradigm for Service Science [Online] Brigham Young University, Available at: http://www.ifm.eng.cam.ac.uk/ssme/references/Sampson_ref_cambridgessme07.pdf [Accessed 02 July 2010].