Page 78 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Neha Khosla, Lovely Professional University
Unit 6: Customer Retention

Unit 6: Customer Retention Notes

CONTENTS
Objectives
Introduction

6.1 Different Types of Customers
6.2 Customer Retention Strategies
6.2.1 Negative Retention Strategies
6.2.2 Positive Retention Strategies

6.3 Trends in Customer Retention
6.4 Keys for Customer Retention
6.5 Customer Loyalty
6.6 Summary
6.7 Keywords

6.8 Review Questions
6.9 Further Readings

Objectives

After studying this unit, you will be able to:
Identify the Different Types of Customer and Discuss Its Strategies

Define Customer Retention
Discuss Trends in Customer Retention
Explain the Key Techniques used for Customer Retention
Explain Customer Loyalty

Introduction

Customer retention is the key to any organization’s effectiveness. Customer centric approach to
marketing program helps retain customers and win back lost customers. An organization needs
to study the needs of the various market segments and design the marketing programs tailor
made to suit the segments. Customer anticipates several things from the company in addition to
the product; which the firm has to study well to bridge the gaps between customer expectations
and firm’s delivery. Emergence of competitive environment resulted in a series of customer
focused (quality centered) management approaches. Thus the quality and productivity have
become synonymous and the employee-centered (internal customer) focus on change
management such as QC, Kaizen, TQM, Zero defects, etc., have come into play.

6.1 Different Types of Customers

Customers play the most significant part in business. In fact the customer is the actual boss in a
deal and is responsible for the actually profit for the organization. Customer is the one who uses

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