CUSTOMER RETENTION

An integrated Strategy of 4 C’s
During the past two decades, customer satisfaction management has emerged as a strategic imperative for most of the firms. In the 1980’s achieving higher satisfaction ratings became a goal in itself. Only during the 1990’s was there a wide spread realization that customer satisfaction ratings were only means to strategic ends, i.e. customer retention. Today the emphasis is shifting. Beyond designing strategies to attract new customer and create transaction with them, companies are going out to retain current customers and build lasting relationship with them. We can take example of instant life insurance rates company who need to have best relation with their customers, so that they can have term life insurance business from them again and again.

Why Customer Retention
Customer retention helps a firm to increase its profitability and understand consumer preferences and needs. An organization cannot work in an ivory tower. It should gin customer’s support to continue operating and this support is gained from loyal customers. The changing demographics, the slow growth of economy more sophisticated competition, overcapacity in many industries mean fewer customers to go around. Attracting new customers has turned to be very difficult. Hence, marketers have to change the tendency of finding new customers at the cost of the old ones, but also have to realize that cutting down of defections in halves would double the average company’s growth rate.

Recommendation

We have discussed on so many factors related to business like marketing, management, product management etc…. Today we are going to discuss on customer satisfaction which is most important factor of any small business and organization. We will talk some features related to customer satisfaction which can help us to provide more satisfaction to out customer.

Expectation and experience were positively and significantly distributed for economic and aesthetic values. In the case of economy, this might be due to the fact that the consumers mentally accepted the price of the product, while buying itself. Aesthetic value was also similarly observed during the purchase.

Service and durability were the values for which the difference between expectation and experience were found to be negative and this state might lead to an overall dissatisfaction. These areas, thus. Must be given immediate attention by the manufactures and attempts must be made to convert the negative disconfirmation state to positive disconfirmation to have satisfaction.

Managerial Implication
This study helps to Identify the gap. By taking appropriate action, customers can be satisfied. Customer satisfaction alone can retain the customers and ultimately, this acts as the base for new customers.