Paper Topic:

Customer Loyalty and Retention

Introduction

Customer retention is important because there is a dire need to keep existing customers for as long as possible so that they will not use competitors ' services or products , while at the same time their leaving will not erode the business of their current service or product provider . This means that if customers defect the direct outcome will be a reduction of market share and profit . In order to avoid that there is a need to have a customer service in place that will meet or exceed the customers ' exceptions in

order to make them loyal . When a given business or a brand succeeds in securing the loyalty of its customers the outcome will be the likelihood of their being persuaded to use competitors products and services will be less that will result in maintaining the level of current business volume (Dahlsten , 2003

It is possible to retain customers by using various strategies such as introducing loyalty programs that avail free membership cards and would avail rewards for every purchase made . Such loyalty programs could avail various kinds of incentives such as discounts or point rewards acquired for making purchase . A good example to cite is air miles points offered by airlines where the points could be accumulated through long term purchasing of airline service and when the points are accumulated they could purchase rewards such as air tickets , luggage discount , or a complimentary night at a given hotel . The advantage of such incentives is if the customers want...

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