Customer Retention Strategies

Paper Summary:

In this article, the writer discusses that the customer retention strategy used at the company at which the writer works is actually comprised of four specific tactics. The writer then describes and explains the four major tactics used for increasing customer retention. The writer maintains that tying all these tactics together into a unified strategy requires a constant focus on measuring how effective they are through the use of analytics to gauge the retention rate of customers. The writer also looks at the problems and future trends regarding customer retention in the company concerned. In addition, the writer evaluates the advantages and liabilities of the customer retention strategy used at the company.

Outline:
Background and Introduction
Main Conclusions
Recommendations
Critiquing the Customer Retention Strategy
Background
Lack of Consistent Analytical Measures of Customer Retention
Excessive Personal Support for Large Accounts at an Unknown Cost
No Visibility of Channel-Based Retention
Future Trends
Limitations, Conclusions and Recommendations

From the Paper:

"The following are the major conclusions from this critique of the customer retention strategies for the company at which the writer works:
"First, the four tactics the company uses is delivering results and it is estimated that the company has approximately a 60% retention rate. Yet the contribution of each of these tactics in hard numbers is not known, so the company is constantly re-shifting the mix of these four tactics that comprise our strategy.
"Second, there is no win/loss analysis to determine how effective the combination of these strategies in conjunction with each other. When one loses a customer there is much anecdotal discussion yet nothing definitive.
"Third, there is no process in place to take the lessons learned from customer retention programs and change product strategies. The link between customer retention and product direction is not in place and therefore it can take years before any lasting change comes to products."

Sample of Sources Used:

• Rick Ferguson, Kelly Hlavinka. (2006). The long tail of loyalty: how personalized dialogue and customized rewards will change marketing forever. The Journal of Consumer Marketing, 23(6), 357-361. Retrieved December 6, 2007, from ABI/INFORM Global database. (Document ID: 1143386931).
• Scott A Neslin, Dhruv Grewal, Robert Leghorn, Venkatesh Shankar, et al. (2006). Challenges and Opportunities in Multichannel Customer Management. Journal of Service Research: JSR, 9(2), 95-112. Retrieved December 6, 2007, from ABI/INFORM Global database. (Document ID: 1150292861).
• Mosad Zineldin (2006). The royalty of loyalty: CRM, quality and retention. The Journal of Consumer Marketing, 23(7), 430-437. Retrieved December 6, 2007, from ABI/INFORM Global database. (Document ID: 1160873911).

More papers on Customer Retention Strategies:

• Research Paper # 63028 : "Customer Retention"
• Case Study # 144819 : "Delta Airlines Customer Centricity"
• Case Study # 70009 : "Customer Loyalty"

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