EFFICIENT CUSTOMER RETENTION STRATEGIES WHICH BENEFIT

ORGANIZATIONS
ABSTRACT: When customers are satisfied with a particular organization, they even become
more willing to pay higher prices because they get value satisfaction from more than just price and
they are even most likely to be less responsive to price appeals offered by competitors (Buttle,
2009). According to (Murphy & Murphy, 2002), there is an increase in profitability over the life
of a retained customer because they tend to buy more as their trust increase. This paper focuses on
providing some of the most efficient customer retention strategies which benefit organizations.
Introduction: According to (Cathcart, 1990), dissatisfied customers may express their displeasure
and stop doing business with an organization without giving notice. Organizations ought to have
customer retention strategies because successful customer retention increases customers’ lifetime
value and boosts revenue (Today’s Egg Daily Expert,2018). Customer retention strategy as defined
by (Gallleto.M,2015) refers to the activities and actions that organizations take to reduce the
number of customer defections. The goal of customer retention programs is to help organizations
retain as many customers as possible through customer loyalty and brand loyalty initiatives
(Gallleto.M,2015).
Organizations need to focus on Customer loyalty such as Trustworthiness, Satisfaction, Price,
Rewards, Reputation, Product, and personal relationships. According to research by (Akaeze. O.C
& Akaeze A.N.S.,2017), the three critical factors identified as responsible for customer loyalty
towards the auto dealership business included Customer Satisfaction Product Quality, and Service
Quality.
Efficient customer service. Customers feel valued when they receive good care and help during
their interaction with the organization. Seamless processes that prioritize good customer care bring
about customer patronization for your organization (Bose & Bansal, 2001).
Organizations should aim for high customer satisfaction. Performing beyond the expectation of
the customer causes emotional bonding with the organization. The exceptional performance brings
about repetitive purchasing and referral hence customer retention.
Seeking customer feedback. A customer is known to be the king of your business. An organization
can lose resources when they give a deaf ear to their customers. Consumers’ opinions are very
important because such opportunities make them feel valued.
Repetitive purchasing generates a continuous revenue stream for the organization. The
organization needs to demonstrate that it cares and rewards customers for their commitment
(Rogers & Gilleland, 2009). Rewards can be gift cards, shopping vouchers, and more.
Conclusion: Organizations need to consider customer retention strategies that put the customer as
king of their businesses for continued loyalty
1. Purchases/services: Purchase of phones, car service repairs
Data that I gather before making a product purchase
Quality. I tend to buy products from a brand for the known quality. I buy Samsung phones because
they have had very good reviews from other customers.
Good customer service. Some retail sellers are good at customer care. They have live chats, send
emails, and even call to fall upon customers. That makes me feel valued and the best way I repay
is to support them by buying products or referring other customers.
Reliability. Mechanics at Simba Garage are very reliable and that’s the reason I chose them always.
They can respond to your request at any time of the day.
Income status. The first thing I check is the cost involved. I only go for products that fit my pocket
size.
Price of the product. Even when I have the budget, I consider value for money by looking at the
best but affordable product
My most compelling type of data, do you buy impulsively?
I have always taken genuine quality reviews from consumers that have an experience of the
product am yet to buy or service. For instance, while selecting a car, I usually inquire about the
fuel efficiency, spare parts, price. I don’t usually buy impulsively.
Type of products I buy impulsively
I rarely buy products impulsively
Way to improve my consumer behavior
Yes, I wish to use the buying decision process consisting of five stages which are Problem
recognition, Information search, Evaluation of alternatives, Purchase decision, and post-purchase
behavior to improve my consuming behavior.

3. In these two units, Developing Market Strategy and understanding Consumer Behavior, I have
learned how to collect and utilize data for understanding customers’ buying behavior, different
types of data available, and how to collect data but not in a detailed way. Is there room for revisiting
these two units more practically?
What stood out: Through consumer behavior, I can know how customers interact with and use
products. This knowledge can help me inform future decisions about product creation.
Reference
Today’s Egg Daily Expert. (2018, September 7). Customers, Come Back! Learn How to Use
Customer Retention to Your Advantage. The Daily Egg.
https://www.crazyegg.com/blog/customer-retention/
Gallleto.M. (2015, June 25). What is Customer Retention? NGDATA.
https://www.ngdata.com/what-is-customer-retention/
Azita, M. (2010). Fastest ways to lose customers. Retrieved November 8, 2012, from http://blog.
getsatisfaction.com/2010/10/04/fastest-way-tolose-customers/
University of Minnesota. (2015). Principles of Marketing. University of Minnesota Libraries
Publishing
Alport, G., (1954) .“Trait Names: A Psychololexical study “Psychological Monograph 47, no 211
Anderson, A.R (1965).Attitude and Consumer Behaviour: A Decision model in New Research, in
Marketing:USA. Person Pros.

Bush, R., Mosteller, F. (1985). Stochastic Models for Learning, New York: John Wiley and Sons.
Chritton, S. (n.d). Develop a Target Market Positioning Statement, Personal Branding.
https://www.dummies.com/careers/find-a-job/personal-branding/develop-a-target-market-
positioning-statement/
Lumen Learning. (2016). Module8:Positioning: Developing Positioning Statements.
https://courses.lumenlearning.com/suny-marketing-spring2016/chapter/reading-developing-
positioning-statements/
Mullen.H.(2018, May 28th). Making Market Forces Work for You: A Q&A With Product
Positioning Pro April Dunford. unbounce. https://unbounce.com/call-to-action/product-
positioning-expert-april-dunford/