Chapter All

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CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Most firms today do feel pressure from their competitors around them, so they

will have to be alert to embrace any change that they may face in the future. The

relationship that these firms have with their customers has to be useful in overcoming

the problems they encounter with their competitors .To succeed in the mist of such

intense competition, business should embrace relationship marketing. In the business

world today, top management must recognize that the customer is the core of the

business and the success of a company greatly depends on its customers. Companies

therefore, should rely on the effective management of relationship with their

customers. So, an important obective for company should be to make the customers

happy since they are the ones who ensure the life of the business. Moreover, In the

past, many firms did not know that customer retention was an important factor and

did not rely pay attention to their customers with the prete!t that many of these

customers did not re"buy since the main interest of the organization is to make profit.

#rganizations have to posses the ability to be able to retain customers gain a long

term advantage over its competitors. The maor aspect of any organization is to make

their customers happy, this will help to build a strong relationship with customers and

it can be done through the gathering of customer information which is considered as

one of the most important strategy in building relationship with customers. The

customer retention management seeks to carry out systematic research and optimize

business processes, retain valuable customers yo improve efficiency and profitability

of enterprises. Customer retention strategy is to accommodate the business interest

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and the interests of customers and comprehensive solutions. It was adapted to update

the concept of marketing management$ organizations need to attract and maintain

stability of the enterprise segment of customers effectively and to firmly grasp the

most valuable customers to obtain ma!imum benefits. The management of customer

retention helps firms to form a unified and comprehensive customer contact channels,

customer service capabilities, and thus become the elements of customer relationship

management. The total customer satisfaction will lead to customer loyalty, leading to

an improvement in customer retention. %egardless of satisfied customers, loyal

customers and business customers will be retained for some reasons. Most companies

are now recognizing that the improvement of product &uality and the provision of

&uality customer service is the key to competitive success, but only a few companies

regularly use a variety of methods to measure the degree to retain business customers.

'romotion is the most effective means to retain customers. (ere, many companies

tend to lower prices to attract customers and record more sales, but for many

customers, they pay more attention to the &uality of the product or services and the

good image of the organization. (ence, there should be interaction between the

organization and customers though some companies do not realize this. Customer

retention can be very, very profitable. The problem is that most people simply do not

understand how to design it correctly, and do not understand the need for tracking,

analysis, and program refreshment to keep the profitability ball rolling.

(owever, it is argued that not all the customers are e&ually profitable to the

organization so they need to focus on strategies that may help to

reinforce customers retention. This could be done through customer segmentation

and differentiation which goes with selecting the right customer for the right

programs to help build long lasting relationship.

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)inally, customer retention could be the only a failure because people do not

know enough about their customers before they implement , and end up putting

too much cost in the process. If you are thinking of going to customer rout,

the best thing you could possibly do for yourself is put in a customer

retention program first. (owever, organizations should not only concentrate on

the products or services they have to sell and generate a ma!imum profit but

to pay more attention to customer*s needs that will enable to attract and retain

customers who will continue to buy their service or product instead of

wasting resources and time to fight against competitors. This study will

e!amine the role of customer retention can play to enhance the growth of an

organization.

1.2 Pro!e" #tate"ent

#ver the years, marketing activities have evolved from a meager beginning

into a multibillion"dollar endeavours. In the past, when many people worked

on farms, small artisan and business owners provided customer service to their

neighbours. Many small towns and villages had their own small general stores,

barbershop and similar service oriented establishment owned and operated by

people living in the town. )or people living in more rural areas, medicine and

other goods made their way from one location to another to serve their

customer and distribute various products. +uring that era, customer service

differed from what it is today by the fact that the owners and the Chief

!ecutive #fficers -C# were also motivated frontline employees working

face to face with their customers.

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/hen industry, manufacturing and larger cities started to grow, the service

industry really started to gain grounds. In the late 0122s, as the mail service

matured, companies introduced the mail order catalogue to address the needs

of customers.

Today, businesses have changed dramatically as the economy has shifted from

a dependence on manufacturing to a focus on providing timely, &uality and

value n of products and services. This is why some profit seeking organizations

pursues different strategies such as promotion, aids, grant etc in retaining their

customers.

+espite the fact that most organizations try so hard to retain their customers,

we still observe the companies losing their customers on a daily basis so then,

what can the company do in order to retain its customers.

1.2.1 Research $uest%ons /hat is the effect of customer satisfaction in the sales volume

/hat is the impact of customer retention on the level of profitability

/hy are most organizations always looking for new customers but could

not maintain the e!isting ones

1.& O'ect%(es o) the #tudy

The main obective of the study is to e!amine the relationship between

customer retention and organizational growth.

In order to achieve the main obectives, study pursues the following specific

obectives$

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To investigate the effects of customer retention on the sales volume.

To e!amine the impact of customer retention on the level of profitability.

To evaluate the role of customer retention on the net asset of the

organization.

1.* Research Hy+othes%s

Ho3 There is no significant method used to retain customers.

Ha3 There is a significant method used to retain customers.

1., #co+e o) the #tudy- De!%"%tat%ons

The research is limited to the study of the impact of customer retention on

organizational growth.

1. Organ%/at%on o) 0ork

The study is divided into five main chapters$ the first chapter is the general

introduction. Chapter two is the literature review. The third chapter dwells

on the methodology employ for this study. Chapter four is based on data

presentation and analysis -interpretation while the final chapter presents the

summary, conclusion and recommendations to the organization in case

CHAPTER T0O

ITERATURE REIE0

2.1 Conce+tua! 3ra"e4ork

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2.1.1 De)%n%t%on o) #o"e 5ey Ter"s

2.1.1.1 Custo"er

The definition of the word customer provides reasons why business need to

develop the main customers rather than simply attract buyers. The word

customer is defined by the #!ford nglish dictionary as meaning 4*to render

a thing customary or usual** and to practice inability. 5 customer is a person

who becomes, accustomed to buying from you . This custom is established

through purchase and interaction on fre&uent occasions over a period of time,

without repeat purchases, this person is not your cust6omer over time.

2.1.1.2 Custo"er Retent%on

5ccording to Macmillian nglish dictionary the international student*s edition,

customer retention is the ability of the firm to keep workers or customers

from leaving the organization.

5ccording to /ikipedia, the free encyclopedia, customer retention can be view

as the activity that is, selling organization undertakes in order to reduce

customer defection. Successful customer starts with a customer and continues

throughout the lifetime of a relationship. Customer retention statistics are

typically e!pressed as a percentage of long term clients and they are

important to a business since retained customers tend to spend more, cost less

and make valuable references to new potential customers.

2.1.1.& Custo"er #at%s)act%on

Customer satisfaction is a situation where the customer e!pectation is met

through good &uality product , on timely delivery.

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Service is the manner in which you and other employees treat your customers

and each other as you deliver your company*s product or other deliverables.

2.1.1.9 #4%tch%ng Cost

Switching cost at this point is 4*the cost that the consumer incurs by changing

one service provider to another** -;ee, ;ee and )eeick, 8220, including the

cost that can be measured in monetary terms, the psychological aspect of

facing a new firm, and the time efforts involved in using a service or

product ?.

2.1.2 Other Conce+tua! Issues

Customer retention has a direct impact on profitability, research by @ohn

)leming and @im 5pland indicate that engaged customer generates 0.A times

more revenue than normal customer while having engaged employer and

engaged customer retains a revenue gain of >2B times the normal. 5 firm*s

ability to attract and retain customers is not only related to it*s products or

services but strongly related to the way its services but strongly related to the

way its services are e!isting and the repetition its creates within and across

the market place. The simplest view that any organization could take of

customer retention is that, the way to keep customer retention is to keep them

satisfied. Some organizations think that this means ero defects, others are

really looking at ways in which retention is not ust a concept but a reality.

5lso, 'ayne et al


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remains loyal for five years -6 whereas a rate of D2E pushes the average

loyalty up to ten -02 years. This shows that as the average life of a customer

increases, so does the profitability to the firm.

)urthermore, 'ayne suggests that longFlasting established customers are more

profitable for si! reasons$

;ong"established customers tend to buy more.

Satisfied customers may sometimes pay premium price.

Satisfied customers often refer new customers to the supplier at no e!tra

cost. %etaining customers make it difficult for competitors to enter a market or

increase their market shares.

%egular customer place fre&uent, consistent orders and therefore usually cost

less to serve.

The cost of ac&uiring and serving new customers can be substantial. 5

higher retention rate implies fewer new customers need to be ac&uired and

they can be ac&uired more cheaply.

)inally, customer retention is a concept to enhance organization*s ability to

retain customers and gain strategies. It is focus on creating and managing

relationships with customers more effectively through detailed and accurate

analyses of customers data using various information technology data.

:ethod o) Custo"er Retent%on

5 retain customer tend to buy regularly and they will fre&uently recommend

your business to others. )or customers to remain in an organization, they must

e!press some satisfaction to the products and services. Companies should

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that heGshe is dissatisfied with the company. It seems that a customer who

complains or suggest an idea is actually trying to led you know that they

really value the relationship, if only you would take their ideas into

consideration.

B De(e!o+ed D%a!ogue$

+eveloping dialogue will help customers who wants to talk to the company.

Making this process simple and friendly increase the level of dialogue between

you and your customers and also generate warm feelings amongst your

customers. %egular dialogue or communication programmes include$ letters,

special offerings and incentives where necessary. +ialogue increases renewal

and repurchase and developing the relationships across more than one product.

6 Co"+!a%nt Hand!%ng$

7o matter how perfectly designed and implemented a marketing programme is,

mistakes will happen, giving the negative e!perience being dealt with properly.

(andling a customer*s problem may be a routine, even boring ta! to you, but

that problem could be most worrying e!perience of your customer*s life which

if not well handle, might cost them to switch.

2.2 Theoret%ca! 3ra"e4ork

'rogrammes %e&uired for ffective Customer %etention.

2.2.1 Add%ng a!ue to a Re!at%onsh%+.

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Michael 'orter -0D12 argued that competitive advantage comes from the value

a company creates for its customers. Halue is the worth of the product or

service. 5dding value to customer retention helps organization to sustain a

perfect relationship with its customer which automatically enables the

organization to retain the customers. 5n organization can add value to its

relationship with customers through$

0 +eveloping an ability to solve customers* problem or complain ointly.

8 #ffer privileges to customers who which to enter into the same type of

formal relationship.> Making the reordering of products and services by customers easier.

2.2.2 Custo"er oya!ty

This is the willingness of a customer to stick to a particular brand of a

company*s product irrespective of the fact that there e!ist many other

substitutes from the competitors. This is because the customer derives high

degree of satisfaction from such product or organization. The customer shows

his loyalty to the brand by buying the same similar or additional offering from

the same brand. Most organization offer loyalty programs

to increase customer satisfaction level. sing customer satisfaction as tool, an

organization maintains the relationship with its e!isting clients and fulfils their

need through additional offering. It is &uite challenging to achieve customer

loyalty. (owever, customer loyalty can be achieve by following a number of

key identifiable stages that the relationship goes through. This is more formerly

known as the relationship marketing ladder or customer loyalty ladder.

6ro4%ng a oya! Custo"er$

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'eople grow into loyal customer by stages. The process is established

overtime. ach of these stages is looked at one by one below.

#tage 1< #us+ect

This is the starting point. Suspect are people or organizations who might

conceivably have an interest in buying the companny*s product or services but

might not have the means or real intention to buy.

#tage 2< Pros+ect

In this stage, the company has the task to identify which suspects are really

good prospects customers with the motivation, ability and opportunity to

making a purchase by interviewing them, checking on their financial standing

and so on. Then it is time to send out the sales people.

#tage &< Custo"er

/hen the sales people are sent out, the prospects then buy and become the

company*s customer who buys or uses the company*s product for the first time

and then repeat purchase.

#tage *< C!%ent

)rom the first time customer to a repeat customer, a customer becomes a

client due to regular purchases.

#tage ,< Ad(ocate

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)rom being a client, the customer becomes an advocate because he is not only

satisfied with the company*s product delighted. 5n advocate recommends the

company and its products and services to others.

#tage < Partner

This is the final stage of loyalty but has very great challenges of turning

advocates into partners or supporters. (ere, the partner does not only

recommend the company and its products and services to others but bring in

new customers as well.

3%g.1= Re!at%onsh%+ :arket%ng adder

5dvocate mphasis on

Supporter developing and

Client enhancing relationship

Customer -Customer keeping

'rospect

mphasis and

new customer.

-Customer catching

The ;adder highlights the process from targeting the customers, to adoption,

developing the relationship from customers to long term clients. )rom here, it

is then essential to encourage them to become both a support and advocates of

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the company, in order that they can become marketing tools on their behalves.

(ere, you not only retain them, but also use them to grow your market.

2.& E"+%r%ca! %terature

The link between customer satisfaction and customer retention.

%eichheld and =enny


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'arasuraman, et. al -0D1B noted that these gaps 4*can be a maor hurdle in

attempting to deliver a service which consumers would perceive as being of

high &uality. 4*:ecause this study focused on the interaction between the firms

representatives and its customers. This author found the fourth gap


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about organizational performance$ providing problem solving skills and other

knowledge that helped employees contribute to organizational performance and

basing rewards on performance. They found that empowering employees to

provide a &uick response to customer frustrations 4* can turn a potentially

frustrated or angry customer into a satisfied one**. -:owen and ;awler, 0DD2.

:itran and (oech -0DD2 also noted that defections are seldom the result of

ordinary interactions but of an organization*s failure to handle abnormal

situations to the customer*s satisfaction.

%elationship of sales skills to :ehaviours linked to customer satisfaction and

%etention.

/illiams, Spiro and )ine -0DD2 noted that very few researchers have e!plored

the customer"sales person interaction from a communication perspective. They

proposed a model that focused on communication as the primary element of

this interaction. They found that, although many authors stressed the

importance of 4*verbal and non"verbal code -Marks 0D10$ @ackson et. al. 0D11

such as message order, patterns of argument, use of evidence, visual contact,

etc. In personal selling, most of the research had concentrated on non"sales

interactions. The customer retention function re&uired that sales skills be

combined with service skills associated with &uality and customer loyalty. This

researcher identified areas in which these two skill sets overlapped, to

determine which -if any behaviours on the part of the representatives might

alter a customer*s decision to take some or all of their business to another

supplier.

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CHAPTER THREE

RE#EARCH :ETHODOO6>

&.1 Background o) the #tudy Area.

;es Societies 5nonymes des :rasseries du Cameroun -S5:C is a brewery

firm in the manufacturing sector and the brewery industry of the Cameroon

economy. ;es societies des :rasseries du Cameroon ** !port, :eaufort, Castel, Tuborg,

5mstel, Mutzig beer, Tonic, vinto uice, 'amplemouse, T#'


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&.2 #ources and Ty+es o) Data

Pr%"ary source

This is data collected in the field for the very first time by the researcher.

This is when the data is gotten from the original source by the researcher

through the means of &uestionnaires, interviews as well as hidden observations.

$uest%onna%res$

5 structured &uestionnaire was used and it has the advantage of presenting

&uestions in se&uence.

Inter(%e4$

5n interview is a face to face meeting between two or more people where the

interviewee is asked series of &uestions by the interviewer for a direct

response.

#econdary #ource

This is information that has already been collected from the field and

analyzed. That is information collected from other people, and in most cases,

the information will not be presented in the re&uired form.

The secondary data for this research were collected from books, articles,

archives, internet.

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&.& ar%a!es o) Data Co!!ect%on.

Custo"er #er(%ce

82.A

Age

60 and above

>9"62

82">6

0

>B

022

2.A2

86.8

AB.0

Educat%ona! !e(e!

);SC

#";H;

5";H;

+I';#M5

+J% 57+ 5:#H

6

A

02

8D

1B

>.A

6.8

A.B

80.6

98.8

E;+er%ence

;ess than 8

>"6

6"A

A and above

8

A1

>9

0D

0.6

6A.1

89.A

0B.0

:onth!y %nco"e

;ess than BD,22262,222"DD,222

022,222"0DD,222

822,222 and above

008>

D8

D

1.00A.2

91.0

9.A

#ource= 3%e!d sur(ey 21*

5 total of 0>6 responses were obtained in this study and secured for data analysis.

:ased on these data, a demographic profile of respondents is presented in Table 8.

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There are seven -6 demographic characteristics discussed. These include gender, age,

education, e!perience and monthly income.

)rom the table, the maority of the respondents are male -AD.>E as compared to

female -82.AE.

The average age of the respondent is between 82">6 years old and accounted for

AB.0E -022 respondents. 86.8E respondents are in the ages of >9 to 62 followed by

only 2.AE or only one employee in the 60 and above year*s age group.

The composition of these respondents indicate that maority of the respondents

who are e!cellent or performed in the ob are from the youth age group -82">6.

In terms of the formal education attainment there is an unbalance distribution

between those with tertiary education -1>.AEN00> respondents and secondary

education -08.9EN0A respondents and primary ->.AE N6 respondents.

The respondent*s ob e!perience between 6"A comprises 6A.1E -A1 respondents,

89.AE ->9 respondents with 6 to A years e!perience and 0B.0E -0D respondents with

A and above year*s e!perience. #nly 0.6E -8 respondents has an e!perience of less

than 8 year.

)rom the study, more than half of the respondents -91.0E who are receiving

a monthly income between 022,222 and 0DD,222frs, salary range between 62,222"

DD,222frs and 822,222 and above -0A.2E and 9.AE respectively. The lowest salary

range was less than BD,222-1.0

Ta!e *= 0hy do you consu"e Brasser%es +roduct

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Res+ondent 3reuency Percentage

Ouality products D8 91.0

;ow price 00 1.0

Jood customer service 8> 0A.2

#thers D 9.A

Tota! 1&, 1#ource= 3%e!d sur(ey 21*

The composition of table B indicate that maority of the respondents who

consume brasseries product do so because of &uality product -91.0E, good customer

service -0A.2, low price -1.0E and others -9.A

Ta!e ,= E))orts "ade y organ%/at%on take to "a%nta%n a cord%a! re!at%onsh%+

4%th %ts custo"ers and to get "ore Custo"ers.

Res+ondent 3reuency Percentage

Sales promotion A1 6A.1

Credit facilities >9 89.A

+oor to door delivery of products 8 0.6

Installation of refrigerators in customers

bars

0D 0B.0

Tota! 1&, 1#ource= 3%e!d sur(ey 21*

The composition of table 6 indicate :rasseries do sales promotion mostly to attract

and retain potential customers -6A.1E, credit facilities -89.A free refrigerators in

customers bars -0B.0E and door to door service -0.6 respectively.

Ta!e = 0hat ene)%t does the co"+any get as a resu!t o) retent%on o) custo"ersF

Res+ondent 3reuency PercentageIncrease in customerNsales volume A1 6A.1

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Increase net profit >9 89.A

'rospect of continuity and growth 0D 0B.0

Jood organizational image 8 0.6

Tota! 1&, 1

#ource= 3%e!d sur(ey 21*

The percentage composition of table 9 indicate benefit of customer retention with

a 6A.1E -A1 respondent for increase in customerNsales volume, 89.AE ->9 for

increase in net profit, growth with 0B.0E -0D respondents and good organizational

image 0.6E -8 respondents.

Ta!e 7= #u""ary o) hy+othes%s

Hy+othes%s Resu!ts #u++ort

Ho Customer retention is not significantly related to

organizational growth

7one 7ot supported

H1Customer retention is significantly related to

organizational growth

Significantly

related

Supported

*.2 Inter+retat%on o) Resu!ts

This section e!amines to find out the relationship customer retention and

organizational growth taken into consideration customer satisfaction. #ne would

e!pect that there would be some degree or correlations between customer

retention with organizational growth. In this case, 'earson correlation analysis

was used to find the relationship between the predictor variables and

organizational growth. The preceding discussion is to answer the main obective

of this research, which is to investigate the relationship between customer

retention organizational growth. This is related to (ypothesis (0, which posits

that customer retention is significantly related to organizational growth and

(ypothesis (o posits that customer retention is not related significantly to

organizational growth.

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This can be sign in the table below

Ta!e 8= Pa%r4%se corre!at%on "atr%; )or custo"er retent%on and organ%/at%ona!

gro4th

ar%a!e 6ro4th target ach%e(ed ?N1&,@

R #%g

Customer satisfaction .1 .8,

Customer loyalty .1, .,

Customer retention .188 .29

G+ .,

The result is presented in Table 1, shows three research variable such as

customer satisfaction -r2.209, customer retention -r2.096, are not significantly

related to organizational growth. Thus, (ypothesis -(o Customer retention is not

significantly related to organizational growth is reected. Meanwhile customer

retention -r2.011, pP2.26 is significantly related to organizational growth. The

finding suggested that the higher retention of customers is considered due to

&uality product, promotion and price reduction that will strive for acceptance from

customers -new and old, thus organizational growth.

To confirm which predictor variables that have the relationship on organizational

growth, once again correlation analysis was run on all variables as shown on

Table 1. #nly one variable, customer retention under the variable option showed the

positive correlation -r e!ists between customer retention and organizational growth.

Table 1 shows that correlation between predictor variables and sales

performance are at a positive relationships. (owever, only one variables was

significant where pP2.26 level.

This study attempts to investigate customer retention from the perspective of

organizational growth. )inally, the study also investigates the relationship

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between predictor variables and organizational growth. The findings of the study

are summarized in Table 0. The correlation analysis was also done to see whether

there are relationships between predictor*s variables and organizational growth Table

1. 5ll the predictor variables were found to have no relationships with the

organizational growth e!cept customer retention that has a positive relationship

with organizational growth. 5s a summary, from the two hypotheses tested, only one

(0was accepted -table A.

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CHAPTER 3IE

#U::AR> O3 :AOR 3INDIN6# CONCU#ION AND

RECO::ENDATION#

,.1 #u""ary o) :a'or 3%nd%ngs

Most organizations whether large or small, profit"making or not"for"profit

making always ensures continuity in their business activity by trying to meet

up with their obectives. (owever, different organization pursues different

strategies in achieving continuity and growth but the most common means that

cut across many organizations is by making sure that their customers are kept

intact. This is why some organizations will refer to their customers as the king

and tend to belief that their customers are what guarantee business success.

)rom the findings of this study, it has been realized that even though an

organization may so desire to boost up their sales, it will depend on how well

they meet up with their consumers* needs. That, it is only when the

organization is able to identify the needs and values of the consumers of its

product and to meet up with maority of these needs and values that the

organization can achieve the retention of these consumers. This implies that

organizations are very committed to meeting customers* needs and values. This

tie to the second hypothesis that asserts that organization*s commitment has a

positive effect on customer retention.

It has also been realized that in respond to meet up with customers need so

as to maintain them, organizations tend to satisfy their customers by using the

following tools or techni&ues$ sales promotions, provision of &uality products

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and services, granting credit facilities to their customers, prompt delivering of

products or services, guaranteeing after sale services, maintaining good

relationship with their customers, organizing parties for loyal customers,

awarding timely bonuses to customers, making direct e!tra phone calls to

customers to know and assist them in times of difficulties. #rganizations have

also tend to provide social amenities such as pipe"born"water, health care

facilities, and education of underprivileged in the realm of corporate social

responsibility. Thus, we reect the first hypothesis that states that there is no

significant method use to retain customers.

)indings further review that customer retention is very important to an

organization and it provides a lot of benefit to both the organization and to

the customers. Such benefits include increase in sales volume, good

organization image, increase in the level of net profit due to fast business

turnover, and the prospects of continuity and growth. Thus, we accept the

second hypothesis that states that there is a significant method use to retain

customers.

,.2 Reco""endat%ons

The organization should also issue loyalty cards to their loyal customers.

This will enable the organization have information on their customer buying

behaviour as will help the organization in segmenting their products or

market.

;es :rasseries should improve on their communication skills. /hen

communication is effective, consumers become aware of the company

e!istence in the market and the various products they offer.

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/hen a new product is introduced, there should be one on more

sensitization of the product


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To the 6o(ern"ent and Pu!%c

This study will help the government to know how far this sector has helped

to create obs and improve livelihoods in the country.

This study is of great importance in the business world today because$ it is

going to help many investors to understand the various strategies used to retain

customers which will intend leads to the growth of the organization.

It will help many people to become entrepreneurs. This is because the study

will help them to know how to retain customers. (ence, some will be

interested in becoming entrepreneurs.

To The Researcher and Other Researchers

The study has help the researcher to ac&uire knowledge on how to provide

&uality services to customers so as to keep within the organization.

This study has improved the researcher*s skills, enabling the researcher to

undertake further research in other areas.

)inally, this study also contributes to literature review as it provides the basis

for further research on this topic.

,.* Conc!us%on

:ased on the findings, this study concludes as follows$

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That customer retention has positive effects on an organizational sales volume.

This is because customer retention guarantees a high degree of trust and

reliable information about a given product and such people tend to pre"

purchase, purchase and repurchase the organization*s products. /hen a

customer becomes so loyal to the organization, heGshe is granted a credit

facilities because of the trust established between the organization and the

customer. The customer will obtain the product even when money is not

available to purchase. Installing the customer retention management application

enables a business to work with a single accurate data base customer records

that can be continually up dated and used for sales campaign and management

reporting.

That customer retention impacts the level of profitability. That the effectiveness

of tools and techni&ues used in maintaining customers will tend to determine

the success level of customer retention programs.

That &uality services is very important on customer satisfaction and retentions.

The customer*s perception of service &uality is the main factor predicting

customer satisfaction. (igh service &uality could attract new customers, retain

e!isting customers, and even lure customers away from competitors whose

service &uality is perceived to be lower.

RE3RENCE#

:owen, and ;awler -0DD2. %ecommended that Service /orkers be mpowered toSolve problems Creatively and ffectively.

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:itran and (oech -0DD2. +efections are Seldom the %esult of #rdinary Interactions.

Marks, -0D10. 5nd @ackson -0D11. 7on"Sales Interaction

Malhorta -0DD9. Suggested that a Halue of 2.9 or less Jenerally Indicatensatisfactory Internal Consistency %eliability.

Micheal, '.-0D12. 5dding value to a relationship.

7unnally, -0D9A. %ecommended a Halue of 2.6 above as the 5cceptable ;evels of

%eliability Coefficient.

7unvi -8229. #rganisational Jrowth.

'arasuraman, et. al. -0D1B. Identify a set of discrepancies between how

e!ecutive perceive the &uality of the service they provide and thetasks associated with delivering those service to customers.

'ayn, Christopher, Clark and 'eck -0DD1. The relationship marketing ladder.

%eichheld and =enny, -0DD2. The link between customer satisfaction and

customer retention.

Schlesinger and (eskett -0DD0. 0BE of Customers Stopped 'atronising Service

:usiness

Turban, et al.-8228. Customer Service.

/illiams, Spiro and )ine. -0DD2. %elationship of sales skills to behaviours

linked to customer satisfaction and retention.

/ikipedia. Customer %etention

eithaml, et al. -0DD2. The Importance of =eeping )rontline 'ersonnel Informed

about #rganisational 'erformance.

;ee, ;ee and )eeick -8220. Switching Cost

'ayne et al -0DD1. 5 7umber of Techni&ues used in Measuring Customers$

Satisfaction,

Morgan and (unt. Trust Theory of %elationship Marketing

%erchheld and Sassser -0DD2. Ouarterly Comes to Service (arvard :usiness %eview

:arnes, @. J. -8220. Secrets of Customer %elationship Management.

%eichheld and =enny -0DD2. Si! )actors as imperative to Improving %etention.

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