Customer Retention in Service Industry
Customer retention is previously considered as the last resort of a company in traditional marketing approach rather than a way to improve long term profit (Krishnan & Govindarajan, 2013). This is because traditional way of marketing strategy tends to focus more on attracting new customers than...
| Main Authors: | , , |
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| Format: | Book Section |
| Language: | English |
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Penerbit UTHM
2020
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/1853/1/Chapter%2004%20Customer%20Retention%20in%20Service%20Industry.pdf |
| _version_ | 1825709615566815232 |
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| author | Siew, Wei Teng Abu Seman, Noor Aslinda Harun, Amran |
| author2 | Harun, Amran |
| author_facet | Harun, Amran Siew, Wei Teng Abu Seman, Noor Aslinda Harun, Amran |
| author_sort | Siew, Wei Teng |
| collection | UTHM |
| description | Customer retention is previously considered as the last resort of a company in traditional marketing approach rather than a way to improve long term profit (Krishnan & Govindarajan, 2013). This is because traditional way of marketing strategy tends to focus more on attracting new customers than satisfying the existing customers. However, as globalization continue to precede, low growth and highly competitive marketplace shows that retaining customers is the more effective way to sustain a company against inroad competition. It is found by some studies showing that companies which emphasize on attracting new customers are actually earning to cover up the regular loss of existing customers without them noticing. Thus, winning new customers are considered a risky way to be profitable (Rosenberg & Czepiel, 1984). Many previous literature reviews also showed the importance of customer retention in increasing company revenue. More companies are now changing their marketing and management strategies to reach out to their existing customers in order to prevent them for opting for service provided by competitive company. A number of researches posit that customer retention increase profitability by lowering the cost used to attract new customers. It is supported by studies showing that there is increase in profit to as high as 95% if customer retention of the company increases by 5% (Sharmeela-Banu et al., 2012). Many researchers came into agreement that repeated customers are the more valuable asset compared to new customers in today’s market (Climis, 2016). Meanwhile, it can be seen in today’s world economy, service industry has emerged to be one of the fastest growing sectors among the others. Customers are considered the real asset to service industry due to the nature of this industry which prioritizes relationship between customers with the service (Alshurideh, 2016). This makes it even more crucial for this industry to practice customer retention strategies in order to survive and grow in the very competitive marketplace. As such, this study intends to explore literatures pertaining to definitions, measures, importance and factors that influence customer retention in service industry as well as to discuss on possible strategies to be applied based on the studies. |
| first_indexed | 2024-03-05T21:41:16Z |
| format | Book Section |
| id | uthm.eprints-1853 |
| institution | Universiti Tun Hussein Onn Malaysia |
| language | English |
| last_indexed | 2024-03-05T21:41:16Z |
| publishDate | 2020 |
| publisher | Penerbit UTHM |
| record_format | dspace |
| spelling | uthm.eprints-18532021-10-27T07:17:03Z http://eprints.uthm.edu.my/1853/ Customer Retention in Service Industry Siew, Wei Teng Abu Seman, Noor Aslinda Harun, Amran HJ9103-9695 Local finance. Municipal finance Including the revenue, budget, expenditure, etc. of counties, boroughs, communes, municipalities, etc Customer retention is previously considered as the last resort of a company in traditional marketing approach rather than a way to improve long term profit (Krishnan & Govindarajan, 2013). This is because traditional way of marketing strategy tends to focus more on attracting new customers than satisfying the existing customers. However, as globalization continue to precede, low growth and highly competitive marketplace shows that retaining customers is the more effective way to sustain a company against inroad competition. It is found by some studies showing that companies which emphasize on attracting new customers are actually earning to cover up the regular loss of existing customers without them noticing. Thus, winning new customers are considered a risky way to be profitable (Rosenberg & Czepiel, 1984). Many previous literature reviews also showed the importance of customer retention in increasing company revenue. More companies are now changing their marketing and management strategies to reach out to their existing customers in order to prevent them for opting for service provided by competitive company. A number of researches posit that customer retention increase profitability by lowering the cost used to attract new customers. It is supported by studies showing that there is increase in profit to as high as 95% if customer retention of the company increases by 5% (Sharmeela-Banu et al., 2012). Many researchers came into agreement that repeated customers are the more valuable asset compared to new customers in today’s market (Climis, 2016). Meanwhile, it can be seen in today’s world economy, service industry has emerged to be one of the fastest growing sectors among the others. Customers are considered the real asset to service industry due to the nature of this industry which prioritizes relationship between customers with the service (Alshurideh, 2016). This makes it even more crucial for this industry to practice customer retention strategies in order to survive and grow in the very competitive marketplace. As such, this study intends to explore literatures pertaining to definitions, measures, importance and factors that influence customer retention in service industry as well as to discuss on possible strategies to be applied based on the studies. Penerbit UTHM Harun, Amran Rashid, Umi Kartini 2020 Book Section PeerReviewed text en http://eprints.uthm.edu.my/1853/1/Chapter%2004%20Customer%20Retention%20in%20Service%20Industry.pdf Siew, Wei Teng and Abu Seman, Noor Aslinda and Harun, Amran (2020) Customer Retention in Service Industry. In: Advance in Marketing Research. Penerbit UTHM, pp. 29-37. ISBN 789672389347 |
| spellingShingle | HJ9103-9695 Local finance. Municipal finance Including the revenue, budget, expenditure, etc. of counties, boroughs, communes, municipalities, etc Siew, Wei Teng Abu Seman, Noor Aslinda Harun, Amran Customer Retention in Service Industry |
| title | Customer Retention in Service Industry |
| title_full | Customer Retention in Service Industry |
| title_fullStr | Customer Retention in Service Industry |
| title_full_unstemmed | Customer Retention in Service Industry |
| title_short | Customer Retention in Service Industry |
| title_sort | customer retention in service industry |
| topic | HJ9103-9695 Local finance. Municipal finance Including the revenue, budget, expenditure, etc. of counties, boroughs, communes, municipalities, etc |
| url | http://eprints.uthm.edu.my/1853/1/Chapter%2004%20Customer%20Retention%20in%20Service%20Industry.pdf |
| work_keys_str_mv | AT siewweiteng customerretentioninserviceindustry AT abusemannooraslinda customerretentioninserviceindustry AT harunamran customerretentioninserviceindustry |