Customer Loyalty and Retention - 3371 Words

The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention by Harkiranpal Singh May 2006 UCTI Working Paper WP-06-06 The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention Harkiranpal Singh Asia Pacific University College of Technology Innovation Technology Park Malaysia Bukit Jalil, 5700 Kuala Lumpur, Malaysia May 2006 kiran@apiit.edu.my Abstract To be successful, organizations must look into the needs and wants of their customers. That is the reason why many researchers and academicians have continuously emphasized on the importance of customer satisfaction, loyalty and retention. Customer satisfaction is important because many researches have shown that customer†¦show more content†¦Furthermore, it is important to realise that many customers will not complain and this will differ from one industry sector to another. Lastly, if people believe that dealing with customer satisfaction/complaint is costly, they need to realise that it costs as much as 25 percent more to recruit new customers†. Friendly Employees Courteous Employees Knowledgeable Employees Helpful Employees Quick Service Overall Customer Satisfaction Accuracy of Billing Billing Timeliness †¢ Billing Clarity Service Quality Good Value Competitive Pricing †¢ Figure 1 Factors that Affect Customer Satisfaction In order to achieve customer satisfaction, organisations must be able to satisfy their customers needs and wants (La Barbera and Mazursky, 1983). Customers’ needs state the felt deprivation of a customer (Kotler, 2000). Whereas customers’ wants, according to Kotler (2000) refer to â€Å"the form taken by human needs as they are shaped by culture and individual personality†. Aaker (1995) said that the strategic dimension for an organisation includes becoming more competitive through customer satisfaction/brand loyalty, product/service quality, brand/firm associations, relative cost, new product activity, and manager/employee capability and performance (Figure 3). Effect of Customer Satisfaction on Profitability Customer satisfaction does have a positive effect on an organisation’s profitability. According to Hoyer and MacInnisShow MoreRelatedEffectiveness Of Loyalty On Customer Retention884 Words   |  4 Pagescompany’s service quality, trust, commitment and communication that leads customers from prospects to partner. However, it is not really easy task for companies to achieve customer as partner. It needs extensive effort from brand to get it. Loyalty program In the initial part of study, it has elaborate meaning of loyalty. Now, this section has presented literature on effectiveness of loyalty on customer retention. Loyalty program often considered as value sharing or enhancement instrument. SabolRead MoreCustomer Service Process Of Customer Loyalty And Their Retention851 Words   |  4 PagesCustomer service is the process of interacting with the customers and the companies to understand the customers’ demands and queries. The customer service is there for each top restaurant who wants to provide a better dining experience to their customers and to get feedbacks from them (Huemer and Setzer, 2011). The customer service helps the company or the restaurants to understand the needs and demands of its customers. By doing that, the company can retain their customers who become loyal to theRead MoreCase Study Hypothesis: Wow Gifts Ensure Retention and Customer Loyalty713 Words   |  3 Pagesgifts ensure retention and customer loyalt y. 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Fast paced technological growth is the main determinant of increased customers’ expectations from the marketers of products and services. Both internet and web enabled technologies complemented the CRM in a significant manner. The approach of research is to gauge the impact of the electronic customer relationship management required in the creation of commitment and the customer base retention in the sector of IranRead MoreCustomer Retention1590 Words   |  7 PagesMake Customers Come Back - Winning Customer Retention Strategies Customer Retention marketing is a tactically-driven strategy to keep relationships with customers going and increase customer interest. This strategy relies on the study of custo mer behavior. Here are the basic tenets of a marketer that seeks to increase customer retention: 1. Past and Current customer behavior This is the best predictor of how customers will behave in the future. They are the characteristics marketers should most often