LECTURE

ON

CUSTOMER RETENTION STRATEGIES

1

Aspect of Relationship Program

Relational Facet Financial incentives Organizational Implications Frequent flyer/reader/buyer/visitor .. Rewards Discounts, product upgrades, awards, prizes Related products or providers expand the net increased customer loyalty to price, incentives Friendly companionship, trust .. Connections Personal insights, recognition, mutual affections, Interpersonal interactions expand the link Increased customer loyalty to the organization

Social bounding

Structuralinteractions

Systemic mass personalization management Mass personalization, cultivations, simulation Artificial intelligence continues the connections increased customer loyalty to the experiences
2

Customer Life Cycle

Acquisition
Suspect Prospect Customer 1st transaction

Retention
Loyal advocate
Repeat Customer

Winback

Inactive regular customer

Lost customer

Reasons for lost customers

Novelty seeking A need, due to satiation or a drive, due to thrill-seeking, or an intellectual curiosity that causes people to choose variety over time The customer perceives a higher benefit value associated with an alternative choice and believes it to be more gratifying A disagreement in which the customers and the companys views seem to be incompatible The customer has no confidence that the organization can reliability fulfill its promises

Dissatisfaction Relative advantage Conflict Loss of trust

Cease to need

The product or solution is no longer required

4

Customer Retention Strategy

The welcome Understand the cognitive dissonance

Reliability
Responsiveness Recognition Personalization

The sold product & services are reliable

Customer want to be treated right, organization should cares about their right needs and feeling Special attention or appreciation

Tailor promotion and product to the specific customer Access Strategy & Communication. Customer needs to contract Customer-initiated the organization. How to response from the communication organization Reward Strategy Frequent buyer program. Frequent buyer awarded redeemable point.
5

Conflict and Customers Complaint Management

Problem Identification and Management Complaint management
Level of dissatisfaction Attribution theory Personal characteristics Be Customer centric Express regret Resolve Conflict
Accommodation Compromise Termination

On customer complain:

Follow up and Prevent Recurrence Keep in touch and Listen to Customers