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    Raja Mukesh Vijit Ghosh Vishnu G

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    Srujan Babu
    This document discusses customer retention in the services industry. It notes that relationship-oriented firms achieve higher ROI than transaction-oriented firms. Retaining high-value, less problematic customers is most desirable. Key drivers of customer retention include service quality, customer behavior and intentions, and service encounters. Relationship bonds and customer benefits increase retention while switching barriers decrease it. Measuring customer retention includes account penetration, share of wallet, and customer equity. Performance is measured through customer feedback, CRM systems, and balanced scorecards.

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    Raja Mukesh Vijit Ghosh Vishnu G

    Uploaded by

    Srujan Babu
    21 views21 pages
    This document discusses customer retention in the services industry. It notes that relationship-oriented firms achieve higher ROI than transaction-oriented firms. Retaining high-value, less problematic customers is most desirable. Key drivers of customer retention include service quality, customer behavior and intentions, and service encounters. Relationship bonds and customer benefits increase retention while switching barriers decrease it. Measuring customer retention includes account penetration, share of wallet, and customer equity. Performance is measured through customer feedback, CRM systems, and balanced scorecards.

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    Service Retention

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    This document discusses customer retention in the services industry. It notes that relationship-oriented firms achieve higher ROI than transaction-oriented firms. Retaining high-value, less problematic customers is most desirable. Key drivers of customer retention include service quality, customer behavior and intentions, and service encounters. Relationship bonds and customer benefits increase retention while switching barriers decrease it. Measuring customer retention includes account penetration, share of wallet, and customer equity. Performance is measured through customer feedback, CRM systems, and balanced scorecards.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    21 views21 pages

    Raja Mukesh Vijit Ghosh Vishnu G

    Uploaded by

    Srujan Babu
    This document discusses customer retention in the services industry. It notes that relationship-oriented firms achieve higher ROI than transaction-oriented firms. Retaining high-value, less problematic customers is most desirable. Key drivers of customer retention include service quality, customer behavior and intentions, and service encounters. Relationship bonds and customer benefits increase retention while switching barriers decrease it. Measuring customer retention includes account penetration, share of wallet, and customer equity. Performance is measured through customer feedback, CRM systems, and balanced scorecards.

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    Customer

    Retention in
    Services

    By
    Raja Mukesh
    Vijit Ghosh
    Customer Retention:
    “Retention of Profitable customers for life”

    Retention is an outcome of behavior of individual

    Goal:

    To build & maintain a base of committed customers who


    are profitable for the organization
    Why Customer Retention?
    Research1 reveals that Relationship –oriented firms
    higher achieve ROI than transaction-oriented firms

    Customer Retention: Benefits


    -Increased revenue overtime from customers
    -Reduced marketing & administrative costs
    -Ability to maintain margins without reducing prices
    1. Harvard Business Review; Sep-Oct 1990
    Is Retention of all customers equally
    desirable?

    NO
    RETAIN
    HIGH VALUE, LESS PROBLEMATIC
    CUSTOMERS(BAD DEBTS, DELAYED PAYMENTS,
    CONSTANT BRAND SWITHCERS)

    Low value customers make distribution network


    viable

    So RETAIN all positive contributors‘


    Key Drivers of Service Quality, Customer retention
    & Profits
    SER BEHA CUST
    SERVICE ENCOUNTER
    VIOR OMER
    VICE
    SERVICE ENCOUNTER
    INTE RETE
    SERVICE ENCOUNTER
    QUA NTIO NTIO PROFI
    TS

    LITY NS N
    Relationship Drivers
    RELATIONSHIP CUSTOMER
    BONDS BENEFITS

    CORE SERVICE STRONG


    PROVISION CUSTOMER
    RELATIONSHIP
    (LOYALTY)
    FIRM
    SWITCHING BENEFITS
    BARRIERS
    How to measure Retention?

    Good Measure of retention must include measure of


    customer development i.e.
    ACCOUNT PENETRATION or SHARE OF WALLET

    CUTOMER EQUITY:

    It is the total of the discounted lifetime values


    summed over all the firms customers
    PERFORMANCE MEASUREMENT TOOLS

    CUSTOMER FEEDBACK

    E-CRM
    BALANCED SCORE CARDS:
    Customer perspective
    Fianancial measures
    Operation Perspective
    Innovation &Learning Perspective
    Amazon.com
    Revenue US$ 34.204 billion
    (2010)[1]
    US$ 1.406 billion
    Operating income
    (2010)[1]
    Net income US$ 1.152 billion
    (2010)[1]
    US$ 18.797 billion
    Founded 1994 Total assets
    (2010)[1]
    Founder Jeffrey P. Bezos Total equity
    US$ 6.864 billion
    (2010)[1]
    Seattle, Washingto
    Headquarters n Employees 33,700 (2010)[1]
    , U.S. Website Amazon.com
    Area served Worldwide
    Alexa rank 16 (April 2011)[2]
    Jeffrey P. Bezos
    Key people (Chairman, Type of site E-commerce
    President & CEO) Web banners
    Advertising
    Videos
    Online shopping
    Industry Cloud computing English, Japanese,
    Available in German, French,
    Italian & Chinese
    Launched 1995
    Top Competitors
    • Barnes & Noble, Inc.
    • eBay Inc.
    • Wal-Mart.com USA, LLC
    12 strategies

    • Offer Customized Content

    • Offer Personalized Picks and Services

    • Ask for Opinions

    • Develop an Email Personality

    • Research Before You React

    • Create a Client Portal


    • Reward Loyal Customers

    • Reward Loyal Customers,

    • Triggered Coupons

    • Make the Tedious Easy

    • Plan a "Win-Back" Program

    • Under Promise and Over Deliver


    Customer Retention
    RELIANCE
    COMMUNICATIONS
    “My vision is to provide the latest telecommunication
    facilities to every Indian at the price of a post card” –
    Dhirubhai Ambani.
     largest wireless network in the world
     cover almost 100% of all rail routes

     cover almost 100% of all national highways, and 84%


    of all state highways
    PROBLEM BEING FACED
    • Competitors
    • Not Proper Communication of Customers Complaint to the
    company
    • Lack of instant complaint solving due to the lengthy documentation
    and entertainment of complaint
    Solutions
    • Customer Satisfaction
    • Customer Retention
    • Increase in Sale
    • Service Excellence
    • Increase in Revenue by Broadband Department
    Retention--Research

    What do you do for retaining the customers?

    Which helps more in retaining the customer?


    What do you do for retaining the customers?

    10

    Giving extra schemes


    24
    Giving proper expected
    solution on time
    By showing empathy to
    customers
    66
    Which helps more in retaining the customer?
    60

    50

    40

    30
    54

    20

    10 23
    18
    0
    Good service 5
    Price
    Product quality
    Others
    Conclusion

     Customers of Reliance are more inclined towards the price


    part
     companies prospective new offers does help in retaining the
    new customers and showing empathy to the customer also
    helps in many of the situations while retaining.
    5 Tactics

    • Regular Communication with Customized Content and Special


    Offer
    • Customer service
    • Listen (and then talk)
    • Loyalty programs, appreciation awards and customer referral
    rewards
    • Bring Your Customers Together

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