Page 78 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Hitesh Jhanji, Lovely Professional University
Unit 4: Customer Retention, Acquisition and Expectation

Unit 4: Customer Retention, Acquisition and Expectation Notes

CONTENTS
Objectives
Introduction
4.1 Customer Retention
4.1.1 Negative and Positive Retention Strategies

4.1.2 Meet and Exceed Expectations
4.1.3 Trends in Customer Retention
4.1.4 Strategic Customer
4.1.5 Different Types of Customers
4.2 Customer Acquisition
4.2.1 Traditional Approach to Customer Acquisition
4.2.2 Customer Acquisition Strategy

4.2.3 Customer Acquisition Management
4.3 Customer Expectation
4.3.1 Zone of Tolerance
4.3.2 Expectation Management Strategies
4.4 Summary
4.5 Keywords
4.6 Review Questions
4.7 Further Readings

Objectives

After studying this unit, you will be able to:
 Discuss the meaning of customer retention
 Learn the mechanism of customer retention

 Study the expectation of customers
 Analyse the importance customer retention
 Explain the management and delivery of customer expectations

Introduction

The explanation below aims to discuss the concept of customer acquisition and retention. Under
the present context of competitive environment, the focus of the organizations is more on
customer retention than simply on customer acquisition. Customer retention is the process of
keeping customers in the customer inventory for an unending period by meeting the needs and
exceeding the expectations of those customers. It is the approach of converting a casual customer
into a committed loyal customer. Acquisition is a vital stage in building customer relationship.
Certain key issues connected with customer acquisition are dealt here.

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