Customer Satisfaction, Loyalty and Retention

Table of Contents

Introduction 2

Who is customer? 2

Important of Customer 2

Customer Satisfaction, Loyalty and Retention 3

Care existing customer 4

The crisis that firms face to do 5

Revenue/sales drop crisis 5

Increasing of operating costs 5

Higher material cost 6

How crisis give a rise to realization on importance of customers 6

Why firms fail to realize the importance of customers 7

Conclusion 8

Reference 9

Introduction

Who is customer?

Customers are playing important roles in every organization. They are like a backbone of the company, without customer the company cannot make any business. Every person who enters business also is a customer. They may not purchase anything today, but may purchase something other day if the service is good. The firms need to determine and analyze each customer type, because each customer can provide different valuable and profitable. There have 5 types of customer, such as loyal customer, discount customer, impulse customer, need-based customer and wandering customer. Loyal customers are a customer that provides unique revenue and likely recommends your products and services. Although the customer base is less but it can make up sales higher. Discount customers shop the stores frequently and they make decision by size of store markdown. Impulse customers do not have particular items to buy but they will come to shop by whim, and buy product seem good to them. Need-based customers shop the store is to buy a particular product by specific need. Wandering customers have no specific need product but rather they want a product with sense of experience and community.

Important of Customer

Customers can help to provide revenue and reference (feedback) as their need and expectation to firms. Furthermore, customers will also provide some pricing comparison information from other firms improve profitability. Zairi (2000) said "Customers are the purpose of what we do and rather than them depending on us, we very much depend on them. The customer is not the source of a problem, we shouldn't perhaps make a wish that customers ‘should go away' because our future and our security will be put in jeopardy". Customers' expectation and their needs is the key to lead the business through success, without customers the firms would not exist. According