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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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