This paper provides an executive summary of the customerretention strategies used at the writer's place of work and analyzes the success of these strategies.
Abstract In this article, the writer discusses that the customerretention 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 customerretention. 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 customerretention in the company concerned. In addition, the writer evaluates the advantages and liabilities of the customerretention strategy used at the company.
Outline:
Background and Introduction
Main Conclusions
Recommendations
Critiquing the CustomerRetention Strategy
Background
Lack of Consistent Analytical Measures of CustomerRetention 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."
Abstract This paper discusses the theory and the practice of customerretention. In addition, the ideas of loyalty, intimacy, and satisfaction are studied to determine their place in the customerretention of today and the future. A better understanding of how organizations and customers define customerretention is vital to this study, as is learning how various firms measure customerretention. The paper examines how customerretention works and identifies what can be done by various companies to determine how best to serve their customers and keep them coming back.
Contents
Chapter One
Introduction
Statement of the Problem
Purpose of the Study
Importance of the Study
Scope of the Study
Rationale of the Study
Definition of Terms
Overview of the Study
Chapter Two
Review of Related Literature
Chapter Three
Methodology
Approach
Data Gathering Method
Database of Study
Validity of Data
Originality and Limitations of Data
Summary
From the Paper "Customer retention has become very important as society continues to grow. When society was very young, there were only a few merchants and they only had certain things that they sold to those that lived and worked nearby. As the population expanded and demand for more things was created, more and more merchants and businesses were established. This created much more competition based on price and other factors, and one of these factors was the treatment of the customers so that they would return to purchase from that shop again. Thus customer retention was born, and it has continued to increase in importance as the population and their demands continue to grow."
Abstract Based on ten books written on the subjects of consumer behavior and customer service, this paper sets out to show whether customer centricity has been the focus of businesses for some time, and whether it has been addressed correctly. The writer explains that the study of customerretention information shows that what it takes to keep customers coming back is quite different from what it takes to attract new ones, and discusses various types of customer loyalty programs. From the literature four specific areas that need to be examined in order to help businesses improve customer focus are identified, as well as six factors that are often seen as imperative in improving customerretention, and five specific dimensions of service quality. The paper concludes that although most studies have indicated that retaining old customers is what really boosts business growth, many businesses still persist in spending more to get new customers who will cost them money by leaving, instead of spending less to retain loyal ones.
From the Paper "It is significant to remember when looking at customer centricity that people seldom stop patronizing a business simply because of ordinary interactions that they deal with when they shop there but instead because of the failure of the specific organization to handle situations that could be potentially problematic to the satisfaction of the customer (Bowen & Lawler, 1992). Personnel who come into contact with customers need to be able to think for themselves, take responsibility for their actions, and respond well to the pressure that often comes from customers who are angry or upset (Bowen & Lawler, 1992)."
Tags: success, customer satisfaction, effective personnel, problem solving, performance coaching communication
Abstract This paper discusses customer loyalty, using the company Comcast Corporation as a case study. The paper begins with an assessment of the roots of customer loyalty, which it maintains are in staff loyalty. Next the paper examines how customer loyalty is developed. Then the paper asks how customer loyalty is incorporated into marketing strategy. Finally, the paper studies the affect of customer loyalty on Comcast's customerretention.
From the Paper "Winning customer loyalty begins with winning staff loyalty. Companies that try to win customer loyalty without first winning staff loyalty often find that in spite of great customer loyalty programs and initiatives their results fall far short."
Abstract This paper describes a business research problem on a theoretical business, the methods for testing the hypothesis, the data collection method, sample size, assumptions, levels of measurement, and the descriptive statistics that will be needed. The study uses statistical data gathered from initiating research in a business, examining problems related to customerretention in a retail environment. The business is a large chain of bicycle shops in the Northwest United States.
The Business Research Problem
Methods for Testing a Hypothesis
Data Collection Method
Sample Size
Assumptions
Levels of Measurement
Descriptive Statistic Needed
From the Paper "The business research problem is how to retain first time customers and bring back former bicycle shop customers. The bicycle shop carries a database of 6,000 total customers. Of the 6,000 customers, 2,000 are current customers. The bicycle shop's new customers are approximately 23 per week. The percentage breakdown for all categories is 65% men, 35% women. A current customer is someone who has used a bicycle shop service in the past six to eight weeks. A former customer is someone who has not used any of the services offered in the past year. The hypothesis to be tested is as follows: New customers and former customers will be retained and visits increased by mailing customer service oriented surveys. Through mail-in surveys over a period of time, analysis will be able to prove if this is correct."
Abstract This paper presents a general review of the literature on customer loyalties to understand the return on investment (ROI) for holding a member for one, five or ten additional years and to understand the cost-effectiveness and programs of various companies in the banking, computers, and other competitive environments to demonstrate in what way membership organizations channel their resources. The author uses an exploratory comparative case study to analyze specific companies: Pacific Coffee Company, Canadian Imperial Bank, First Union Bank City Super, USAA, Mercedes, SunExpress, Telesales and PC Universe. The paper states that companies must develop a strategic that focuses their energy and resources totally on customerretention, customer relationships and the creation of customer loyalty and value so that attrition can be quickly identified and remedied and defection can be prevented. Tables
Table of Contents
Introduction
Introduction
Background
Purpose of the Study
Hypotheses
Definitions of Terms
Organization of the Remainder of the Study
Literature Review
Customer Loyalty
The Customer Loyalty Pyramid
Store Loyalty and Brand Loyalty
Return in Investment (ROI) of CustomerRetentions Customer Lifetime Value (CLV)
Research Methodology
Purpose of this Study
Introduction
Participant Samples
Research Design
Conclusion
Research Findings
Pacific Coffee Company
Canadian Imperial Bank
First Union Bank
USAA
Mercedes
SunExpress
Research Analysis
Conclusion
Recommendations
From the Paper "Determining the CLV, or economic worth of a customer, is, in principle, a straightforward exercise. To calculate CLV, project the net cash son, household, or company whose revenues over time exceed, by an acceptable amount, the company costs of attracting, selling, and servicing that customer. This excess is called customer lifetime value (CLV). Customer lifetime value should be an important construct in designing and budgeting a number of marketing decisions such as customer acquisition programs (Dwyer, 1989). Recognizing its importance, many researchers in direct marketing have studied CLV and its managerial applications "
Abstract This paper addresses challenges facing managers with regard to employee or customerretention due to changes in technology and provides suggestions on how these might be managed. It looks at the causes of both employee and customer resistance to changes and advises making changes in "baby steps."
From the Paper "Technology can be a great tool for retaining customers and employees but it can also pose retention challenges for both. Even in today's technology-savvy environment there are always some customers and employees who fear technology and ..."
Abstract This paper discusses some of the strategies that banks employ for customerretention and cross selling, and then takes a look at the expectations for the future in these areas.
From the Paper "Traditionally, banks got and obtained their customers through a combination of advertising, word of mouth, acceptable rates on saving and checking accounts, and sheer luck of geography. It was typical for a customer to choose a bank based on having a branch close to his or her home or otherwise easily accessible on the drive to work. Most customers stayed loyal to their banks, kept in the fold by a ceramic piggy bank or toaster when they opened a new account or took out a home loan; and they typically did all their banking with a banker their family may have known for years. Tellers were expected to be friendly, bank officers were not."
Abstract The paper examines the crisis in the hospitality industry with regard to recruitment and retention of employees. Several contributing factors to the recruitment and retention phenomenon are considered, such as increased diversity, the imbalance between skilled and unskilled labor and the nonexistent benefits, such as health insurance, profit sharing and retirement benefits. The author notes that management strategies are counterproductive and do not offer the employee real incentive to strive for achievement. The paper also addresses the issue of corporate responsibility for employees. The paper concludes with suggestions for employee retention in the hospitality industry.
Outline:
Introduction
Major Obstacles to Employee Retention Employee Retention Solutions
Conclusion
From the Paper "Several big name hostels are beginning to practice better diversity standards and seeking to create a better awareness among the public about the diversity and inherent interest in their employ. This trend will likely continue and it is hoped that it will continue to be a fruitful part of the development of individuals from varied nations, as assimilation is really a small part of immigration. Many more issues surround the struggles of immigration and diverse populations, many of which can only be answered by employment."
A critique on an article by K.S. Folse, called "The Effect of Type of Written Exercise on L2 Vocabulary Retention", which discusses word retention following vocabulary exercises.
Abstract This paper analyzes and critiques an article written by K.S. Folse which examines the variable effects of three different vocabulary exercises on word retention, based on a sample of ESL students enrolled in intensive language programs at American universities. The paper concludes by explaining the limitations of the study.
From the Paper "Implications for classroom practice are extensive. Teachers who base their vocabulary exercises and assessment tools on original sentences, based on the assumption that original sentences will lead to retention, may need to rethink their approach to TESOL. Folse (2006) adds that creating original sentences place undue time and energy demands on the students, which may detract from their actual ability to retain the word. Teachers also have to spend more time on grading original sentences, and poor grammar may impact grades without reflecting whether or not the student actually understood the target word. Writing sample sentences with the target words, teachers can create more meaningful and effective exams that are also easier to grade."
Abstract This paper takes a look at the idea of grade retention, a concept designed to improve the standard of education in the USA. The paper focuses on the state of Florida, which has implemented the grade retention system. According to the paper, students in Florida can now be kept back to repeat a year, rather than be promoted on the basis of 'social promotion' instead of academic readiness.
From the Paper "The rules for determining promotion between the third and forth grade in Florida are based largely on the students' performance on state standardized tests. (Reid) According to the Department of Education, Florida law now says that third graders that score low on the FCAT standardized test "must be retained, unless there is other information that indicates these students can read independently." (The New Department of Education) The tests are the key factor in the decision, however under certain circumstances parents can appeal decisions based on the test, however the appeal procedures and qualifying for promotion based on other means can be a difficult process. If a student performs poorly on the FCAT test, the teacher must be the one to create a portfolio of the child's work to demonstrate the ability to meet minimum performance standards. Unfortunately, convincing teachers and administrators to create such a portfolio may be difficult for parents, and virtually impossible for students without actively involved parental support. According to Mark Pudlow of the Florida Education Association, "Few educators considered portfolios to be a viable option...Only a small percentage of students are expected to be promoted based on their portfolio work." (Reid) In order to qualify for advancement to the next grade level without a passing FCAT score, a "good cause exemption" must be given. Students may qualify for a good cause exemption if the student speaks a limited amount of English, if the student has a disability and it is determined that it is not appropriate for the student to take the FCAT test, if the student can pass an alternate reading test called the SAT-9, if the student has been retained previously under special circumstances, or if the aforementioned portfolio is assembled and considered adequate. (The New Department of Education)"
This paper sheds light on some of the factors affecting employee retention and offers typical solutions, focusing specifically on the electronic systems industry.
Abstract The following paper examines the issue of employee retention and obtainment, which is an intensive struggle between employer and employee. Retaining and obtaining employees in today's economy is a constant campaign for the best and most deserving workers and thus this paper suggests ways of improving employee relations by improved communication, incentives, good benefits a pleasant office climate and more. The information contained within was compiled from literature found in public libraries abroad, third party investigations and personal observation.
From the Paper "During the 1990s, job seekers had a dizzying array of choices when they searched for work. It was a difficult task for employers to keep employees. Losing employees always meant losing knowledge, capital, skills, and experience (Watson, 2000). Losing knowledge was a major concern to organizations. If an organization lost an employee with a great amount of knowledge, it essentially lost revenue that the employee would have generated. If an employer lost an employee with a great amount of experience, it would take lots of time and money to retrain a new employee for positive production. Experience is an intangible that is relied up heavily. Every worker carries with him or her at least three basic types of experience. Every worker posesses a certain amount of industry, company, and position specific experience."
Abstract This is a literature review of research in the area of effective employee retention strategies for organizations. A number of online articles are discussed with various strategies.
Abstract This paper proposes a plan for promoting effective employee development and retention, touching on training, human capital management, a career development planning model, and an employee relations program.
From the Paper Employee Development and RetentionAbstract Employee development and retention are critical to an organization'sability to meet its goals and challenges and retain profitability Thispaper discusses the factors that affect employee development and retentio
Tags: employee development, retention, training, human capital, career development planning model, employee relations program
This paper discusses three articles that illustrate the use of mass customization in today's business world. The articles are then critiqued, and a conclusion/summary is offered.
Abstract Mass customization has emerged as a solution to address the new market requirements by producing goods and services to match individual customer's needs, while still enabling firms to capture the efficiency advantages of mass production. This means that individualized or personalized goods can be provided without the high cost surpluses and, thus, price premiums, usually associated with customization. To deliver mass customization, firms must find new ways to interact with their customers during the process of co-designing and configuring a customer-specific solution. This paper examines articles that deal with the ways in which several companies are meeting these demands without compromising the bottom line or customer service.
From the Paper "Henry Ford, in reference to the Model T, once said you can have it in ?any color so long as it's black.? It was many years later before car buyers were able to completely customize vehicles according to their preferences. Even though Henry Ford may have been shortsighted in this aspect by today's standards, the complete lack of customization available on a Model T did make good business sense at the time. For example, he never had to worry about running out of a popular color of paint and delaying production until more could be acquired. But those days are long gone and today's customers are becoming more demanding than ever."
