Page 86 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 4: Customer Retention, Acquisition and Expectation

have loyal customers in their customer inventory. With the backup of loyal customers, the Notes
organisation could enjoy a number of advantages. In short, having loyal customers will serve as
a sustainable competitive edge to the organisation concerned in the present day context. Therefore,
organisations should keep “building customer loyalty” as their prime agenda.
Customer loyalty is a company’s ability to retain satisfied customers. Maintaining customer
loyalty is one of the toughest challenges for any marketing department in a business enterprise,
since the wants of a customer are modified at much faster rate than their needs. It requires a
business enterprise to follow a pro-active approach that includes formulating strategies for
brand consolidation, researching and continuing with new product development, following
TQM (Total Quality Management), implementing CRM systems, and also, working out Pipeline
Management tactics.

A customer loyalty program is based on a simple premise: as a company develops stronger
relationships with their best customers, those customers will stay with the company longer and
become more profitable.
Since every marketer wants customers, a logical question to ask is “what affects customer
loyalty”. The factors that affect the customer loyalty are:

1. Customer satisfaction
2. Emotional bonding
3. Trust
4. Choice reduction and habit

5. History with the company
Figure 4.3: Factors affect Customer Loyalty

Satisfaction

Emotional Bonding Attitudinal loyalty

Degree of customer loyalty
Trust

Behavioural loyalty
Choice reduction
habit

History with the
company

Source: https://www.google.co.in/.3.0...0.0...1ac.1.7.img.lht30OO7YYM
1. Customer Satisfaction: People develop belief about what they expect to happen before
they make a choice. Customer satisfaction is a post-purchase or post-choice evaluation
that results from a comparison between those pre-purchase expectations and actual
performance. Fulfilment of an expectation is confirmation. If there is a disconfirmation
expectations are not met. Dissatisfied customers may complain, choose never to purchase
the transactional experience is thus seen to result in confirmation or disconfirmation yet
for most organizations, the goal is to measure and manage customer satisfaction with the
cumulative experiences customers have with the brand, product, organization, or location.

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