service retention

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Customer Retention in

Services

By

Raja Mukesh

Vijit Ghosh

Vishnu G



Customer Retention:

´Retention of Profitable customers for lifeµ

Retention is an outcome of behavior of individual

Goal:

To build & maintain a base of committedcustomers who are profitable for the organization



W hy Customer Retention?

Research1 reveals that Relationship

±oriented firms higher achieve ROI

than transaction-oriented firms

Customer Retention: Benefits

-Increased revenue overtime from customers

-Reduced marketing & administrative costs

-Ability to maintain margins without reducing prices1. Harvard Business Review; Sep-Oct 1990



Is Retention of all customers equally

desirable?

NO



Key Drivers of Service Quality, Customer retention

& Profits

SERVICE ENCOUNTER

SERVICE ENCOUNTER

SERVICE ENCOUNTER

SERVICE

QUALITY

BEHAVIOR

INTENTIONS

CUSTOMER

RETENTION

PROFITS



Relationship Drivers

RELATIONSHIP

BONDS

CORE SERVICE

PROVISION

SWITCHING

BARRIERS

CUSTOMER

BENEFITS

FIRM

BENEFITS

STRONG

CUSTOMER

RELATIONSHIP

(LOYALTY)



How to measure Retention?

Good Measure of retention must include measure of

customer development i.e.

ACCOUNT PENETRATION OR SHARE OF WALLET

CUTOMER EQUITY:

It is the total of the discounted lifetime values

summed over all the firms customers



PERFORMANCE MEASUREMENT TOOLS

CUSTOMER FEEDBACK

E-CRM

BALANCED SCORE CARDS:

Customer perspective

Fianancial measures

Operation Perspective

Innovation &Learning Perspective



Amazon.comRevenue

US$ 34.204 billion

(2010)[1]

Operating incomeUS$ 1.406 billion

(2010)[1]

Net incomeUS$ 1.152 billion

(2010)[1]

Total assetsUS$ 18.797 billion

(2010)[1]

Total equityUS$ 6.864 billion

(2010)[1]

Employees 33,700 (2010)[1]

Website Amazon.com

Alexa rank 16 (April 2011)[2]

Type of site E-commerce

AdvertisingWeb banners

Videos

Available in

English, Japanese,

German, French,

Italian & ChineseLaunched 1995

Founded 1994

Founder Jeffrey P. Bezos

HeadquartersSeattle,

Washington, U.S.

Area served Worldwide

Key people

Jeffrey P. Bezos

(Chairman,President & CEO)

IndustryOnline shopping

Cloud computing



Top Competitors

� Barnes & Noble, Inc.

� eBay Inc.

�Wal-Mart.com USA, LLC



12 strategies

� Offer Customized Content

� Offer Personalized Picks and Services

� Ask for Opinions

� Develop an Email Personality

� Research Before You React

� Create a Client Portal



� Reward Loyal Customers

� Reward Loyal Customers,

� Triggered Coupons

� Make the Tedious Easy

� Plan a "Win-Back" Program

� Under Promise and Over Deliver



³My vision is to provide the latest telecommunication

facilities to every Indian at the price of a post card´ ±

Dhirubhai Ambani.

largest wireless network in the world

cover almost 100% of all rail routes

cover almost 100% of all national highways, and 84%

of all state highways



PROBLEM BEING FACED� Competitors

� Not Proper Communication of Customers Complaint to the

company

� Lack of instant complaint solving due to the lengthy documentation

and entertainment of complaint

Solutions

� Customer Satisfaction

� Customer Retention

� Increase in Sale

� Service Excellence

� Increase in Revenue by Broadband Department



Retention--Research

What do you do for retaining the customers?

Which helps more in retaining the customer?



What do you do for retaining thecustomers?

10

24

66

Giving extra schemes

Giving proper expected

solution on timeBy showing empathy to

customers



5 Tactics

� Regular Communication with Customized Content and Special

Offer � Customer service

� Listen (and then talk)

� Loyalty programs, appreciation awards and customer referral

rewards

� Bring Your Customers Together

service retention

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