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].

Customer Satisfaction in Banking

Introduction

Aiming for the customer satisfaction is the most challenging task in every organization. Through the satisfied customers, a firm an easily measure the effectiveness of the business, its potential and position in the industries, and the areas that are needed to polish and improve. Keeping the trust of a customer is not an overnight miracle but with full of patience and bountiful of effort.

Background and Problem Statement

The products and services that are sold in the most favorable prices can be an initial step of the firm in obtaining the trust and be included in the top list of the customers. However, because of the tight competition of various services, particularly in banks, the perception of the customers and potential customers are also divided according to the services that they want to achieve. In addition, the impact of the economic problems and financial crunches among the financial institutions creates a great challenge in the banks. With all the challenges that are ahead on the banks, how will they gather the customer satisfaction which is the same focus of the other competing banking institutions?

Research Aim and Objectives

The aim of the study is to determine the satisfaction on the services and products delivered by the banks towards their customers to attract other potential customer. There are three objectives that can be the guidance of the researcher/s in reaching for their goal and, in also, measuring the impact of customer satisfaction to their effectiveness in the market. First objective is to recognize the various strategies placed by the banks to achieve the customer satisfaction. Second is to determine the extent of those strategies to eliminate or at least minimize the impact of resistance and reluctance of the customers towards the bank’s offered products and services. And third is to discover the level of satisfaction from the existing customers that can contribute in the success and continuous performance of the banks.

Literature Review

Finding for the loyal customers is a great opportunity for the various firms and enterprises, for the corporate leaders believe that through them, the firms can continue its business cycle. In order to keep the loyal customers, the organization should first attempt to discover the ways to satisfy the customers. Customer satisfaction is an applied term that determines on how products and services supplied by a company meet or surpass customer expectation. It is an essential tool to see the key performance indicator within business. In banking industry, being competitive is already a given factor. Customers expect that banks should be strong enough even if there are uncertainties in the country, most especially in the financial stream. In the long run, the customer satisfaction can be the key element of the organization to prepare another strategy (Gitman and McDaniel, 2005). Every business’s mission is making the customers as their first priority. In accordance to this, the business must fill or serve the satisfaction of their customers according to what preferences that the market is demanding for. In the banking industry, there is a suggested conceptualized model of satisfaction in terms of the business-to-business level. With the aid of the path analysis, corporate customer satisfaction can be determined in the earliest time with regards to the equity, and expectations of customers (Armstrong and Seng, 2000; Hackl and Westlund, 2000). Catching the attention of the customers is the first impression of the banks in terms of promotion. However, if the banks continuously deliver the satisfaction towards to their customers, the firms will not only obtaining success but also the continuing promotion of benefits for their own customers. The most desirable outcome that the customers can gain is the improvement on their experience in banking services and products and identify that there is an increase performance. On the other hand, the firm can enjoy the benefits of minimization of the business uncertainty, maximization of profit margins and enhancement of productivity; reduce on expenses, and optimization on resource deployment (Hansemark and Albinsson, 2004).

Methodology

The suggested method in the study is the use of survey and interview as the primary strategy to obtain the needed information. Through the combination of survey and interview, the current position of the bank in the society can be determined. For the first process of the investigation, the survey will be conducted among the population of the customers. The first 100 customers will be the participants and through the help of the Likert Scale, the researcher/s can view the appeal of the bank’s services and products on their customers. At the second phase of the study, the interview will be conducted among the five managers of the bank. The interview has a purpose to recognize the various strategies and their strong points to attract and maintain the customers.

References:

Armstrong, R.W. and Seng, T.B. (2000) “Corporate-Customer Satisfaction in the Banking Industry of Singapore”, International Journal of Bank Marketing, Vol.18, No.3

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

Hackl, P. and Westlund, A.H. (2000) “On Structural Equation Modeling for Customer Satisfaction Measurement’’, Total Quality Management, Vol. 11 No. 4

Hansemark, O.C. and Albinsson, M. (2004) “Customer Satisfaction and Retention: The Experiences of Individual Employees”, Managing Service Quality, Vol.14, No.1.

Customer Satisfaction in the Hospitality Sector

Introduction

In the most ideal description of the hospitality business, it is simply identified as the organizations or teams from top to bottom that usually comprises the top chefs, sales teams, and the management. During the hospitality operations, the teamwork should be seen in the setting to effectively ensure the standard of their work and functions according to their responsibility. The harmony and cooperation of the people might trigger to the success of the business and achieving the customer satisfaction.

Background of the Study and Problem Statement

Because of the changes within the trend in the globalization of products and services, the demand for tourism or hospitality services is under the pressure of the competitive markets (Smith, 2000). The success of an organization can be originated from the simple focus on the learning and skills. Employees are expected to carry out the roles and obligations to achieve the core objectives of the hospitality businesses. However, most of the products and service industries believe that through the customers’ satisfaction, the business can be evaluated towards its success.

Research Objectives

The objective of the study is divided into two important topics. First is to determine the customer satisfaction in the hospitality industry and second is to determine the effectiveness of the customer satisfaction based on the marketing and/or advertising focus of the business to attract more of their clients.

Research Questions

The study recognized the important roles of marketing and advertising functions in every industry. However, it is the main focus of the study and therefore, the study prepared the several questions that can guide the entire study towards its completion.

1. What are the marketing and/or advertising strategies of the hospitality businesses that have a potential in maintaining or attracting their clients?

2. What are the actions of the management in the variations of the promotional strategies?

3. How can the employees help the strong function of the marketing and advertising strategies of the business?

Literature Review

The employees and the management are committed to meet and yet, exceed the expectations of the customers. The clients have a lot of choice when it comes to hospitality and the business should attract and retain the customers through the application of different strategies. There are two effective strategies that the hospitality industry prefer to apply and that is the internal communication and external communication. The communication between the staff or the clients is important in the service industry most especially in the hospitality (Lazer and Layton, 1999). The internal communication is the most basic strategy to ensure that the employees’ understands the needs of the clients as well as contributing to the success of the business. On the other hand, the external communication is another method that usually involves the technology. External communication is a massive method that can affect the variety of people and through the use of the marketing strategies, such as the campaigns, advertisements in television or newspapers, posters, and others the promotion of the organization for just a day can be possible. Also, the communication methods should aim in promoting the quality as presented in the everyday process or transaction of the businesses. Furthermore, the marketing strategies are formulated to represent the best attribute of the business that can also meet the expectations of the customers (Morris, 2008).

Methodology

The applied method is the use of questionnaires that measures the satisfaction which is entirely based on the perceptions of the customers. Through the questionnaires, the customers can freely describe the level of satisfaction they gained in the particular hospitality business and the other concerns they bear in mind. In addition, the questionnaire also indicates the issue on how the marketing and/or advertising of the business affect their decision making. The participants are diversified clients. It is also determined the age, gender, and the years of the clients’ relationship with the hospitality business.

Conclusion

From learning the factors that affects the customer satisfactions, the hospitality businesses should foster the improvement in the skills of the employees. The marketing and advertising efforts of the business will be useless if the people will not create a mean action to meet the satisfaction of their clients.

References:

Lazer, W., & Layton, R., 1999. Quality of Hospitality Service: A Challenge for the Millennium. [Online] Available at: http://www.hotel-online.com/Trends/EI/EI_ServiceChallenge.html [Accessed 23 Feb 2010].

Morris, P., 2008. Guidance for the Diploma Hospitality: Foundation [Online] Available at: http://www.qcda.gov.uk/libraryAssets/media/Hospitality_foundation_-_altered.pdf [Accessed 23 Feb 2010].

Smith, R., 2000. Prospects and Challenges for Tourism and Hospitality Organizations in the 21st Century. [Online] Available at: http://www3.ntu.edu.sg/nbs/research/TM-prospects.htm [Accessed 23 Feb 2010].