+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

IMPACT OF CUSTOMER RETENTION ON BUSINESS PERFORMANCE

  • Type:Project
  • Chapters:5
  • Pages:65
  • Format:Microsoft Word
(Marketing Project Topics & Materials)

ABSTRACT

As customers are the backbone of any business, firms without customers would not be able to sustain their performance. This is because such firms are believed to have no revenues, no profits and therefore no market value. Accordingly, managing customers is deemed to be very crucial business agenda in which the key focus has been switched in recent years from attracting new customers to preserving existing ones. Both practitioners and scholars have discovered that it is much easier and cheaper to retain the exiting customers than investing on the potential customers. A decent customer retention level is believed to be a significant contributor towards improvement in the overall firm performance. Accordingly, this study explores the customer retention practices adopted by fast-food firms in general and Favourites fast-food in particular while examining the factors that retain customers and the subsequent impact of customer retention practices on business performance. A survey of forty (40) customers of Favourites Fast-Food Asaba showed that customer service and quality of product have significant influence on customer retention which inturn has direct impact on business performance. Hence, it is advisable for fast-food businesses to pursue an effective and efficient customer service and ensure high and consistent quality of their product.

CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
As customers are the backbone of any business, firms without customers would not be able to sustain their performance. This is because such firms are believed to have no revenues, no profits and therefore no market value. Accordingly, managing customers is deemed to be very crucial business agenda in which the key focus has been switched in recent years from attracting new customers to preserving existing ones. Both practitioners and scholars have discovered that it is much easier and cheaper to retain the exiting customers than investing on the potential customers. A decent customer retention level is believed to be a significant contributor towards improvement in the overall firm performance. A glimpse on the existing researches on customer retention highlights that financial sector has been thoroughly investigated which leave a room for a detailed investigation on customer retention within the fast-food industry.
Customer retention is seen as an obligation by a customer to carry out business transactions with a particular firm on a regular basis (Hansemark & Albinsson, 2004). In addition, Molapo and Mukwada (2011) have ascertained that firms are all out to foil attempts by customers to switch retailers and indirectly retain them. also, Erdis (2009) has established that firms direct their marketing efforts to please their current customers in order to retain them and foster long-term relationships with them. Customers will frequently patronise firms which meets their needs and hence, an enduring relationship will be fostered (Fill, 2005). 
Farquhar (2004) claimed that retained customers increase firms’ profits because acquiring new customers are a costly affair. This is in line with the findings of Reichheld and Schefter (2000) which ascertained that firms that are able to raise customer retention by five per cent would be able to boost profits by 25 – 95 per cent. In addition, the costs of acquiring new customers are five times more than retaining an existing customer for a firm (Tu, Lin, & Chang, 2011). Thus, boosting customer retention will increase firm’s profits and performance by leaps and bounds (Sim, Mak & Jones, 2008).

1.2     STATEMENT OF RESEARCH PROBLEM
Customer retention is not given the attention due to it, by most firms especially the fast-food industry. It has been found that customer retention has more impact on profits than market share, economies of scale and other variables that are considered to provide competitive advantage to a firm. In fact, it has been found that companies, which reduced customer defections by 5 per cent, could boost profits from 25 per cent to 85 per cent. 
Traditionally, marketing management has relied on permutations and combinations of the marketing mix elements (product, price, place and promotion) to achieve market dominance through enhanced market share by acquiring new customers. This approach considers the formation of homogenous segments of relatively heterogeneous customers. It does not take into account the history of association between the customer and the seller and hence does not reveal the actual buying behaviour of the customer. Aggressive branding and promotions are other tactics used by sellers adopting the traditional marketing approach. But brands with the highest market share are not always the most profitable. In some cases, they may even be unprofitable. 
The relationship marketing approach on the other hand, focuses on customer retention, encouraging increased spending and on long-term relationships with customers. Gronroos, a research scholar, has stated - ‘Marketing is to establish, maintain and enhance relationships with customers and other parties at a profit so that the objectives of the parties involved are met. This is done by a mutual exchange and fulfillment of promises'. Customer retention should thus become a part of the strategic marketing planning process of any firm. 
It is on this note that the researcher investigates the impact of customer retention on business performance.

1.3     OBJECTIVES OF THE STUDY
The overall objective of the research study is to examine the impact of customer retention on business performance. Other specific objectives include:

  1. To determine the factors that influences customers retention
  2. To examine the dimensions of customer retention
  3. To examine the relationship between customer retention and business profitability

1.4     RESEARCH QUESTION
The following research questions formed the basis for the study:

  1. What are the factors influencing customer retention in the fast-food industry?
  2. What effect does customer retention has on business growth?
  3. What is the relationship between customer retention and business profitability?
IMPACT OF CUSTOMER RETENTION ON BUSINESS PERFORMANCE
Share This

Details

Type Project
Department Marketing
Project ID MKT0420
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 65 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Marketing
    Project ID MKT0420
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 65 Pages
    Format Microsoft Word

    Related Works

    CHAPTER ONE 1.1 ... 1.2  STATEMENT OF THE PROBLEM          There is keen competition among first bank geographical area of this study as a result of environmental changes [especially, technological changes and the first bank induced consolidation]. The bank are in strong contention to outwit one another in the market place. In this... Continue Reading
      CHAPTER ONE INTRODUCTION 1.1   BACKGROUND TO THE STUDY Total quality management practice is a firm-wide management philosophy of continuously improving the quality of the products/services/processes by focusing on the customers’ needs and expectations to... Continue Reading
    CHAPTER ONE 1.0     Introduction Chapter One begins by clarifying the terminology used in this study. The background to the study, which contextualizes the topic under consideration, is then presented. This is followed by the formulation of the problem statement, and the goals and objectives of the... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY It is an obvious fact that every organization tends to move to a position where customer satisfaction is given a favourable consideration. In other words, customer satisfaction is a construct that must be met optimally for efficient and effective achievement of stated objectives, and for smooth... Continue Reading
    (A STUDY OF FIRST BANK NIG. PLC, AKPAKPAVA BRANCH, BENIN CITY) CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Relationships are the soul of life. It is hard to think regarding any society or organization to survive without relationships. They are the imperceptible... Continue Reading
    THE IMPACT OF EFFECTIVE CUSTOMER RELATIONSHIP ON ORGANIZATIONAL PERFORMANCE (A STUDY OF FIRST BANK NIG. PLC, AKPAKPAVA BRANCH, BENIN CITY) ABSTRACT Banking today has become more innovative, competitive and attractive to other investors in the sector. The competitions as a result of high numbers of people who do not have bank accounts have driven... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 Background to the study A unique selling point (USP, also seen as unique selling proposition) is a feature that differentiates a product from its competitors, such as the lowest cost, the position, the highest quality or the first-ever... Continue Reading
    CHAPTER ONE: 1.0 INTRODUCTION 1.1 Background of the study 1.2 Statement of the problem 1.3 Statement of the objectives 1.4 Research questions 1.5 Research hypotheses 1.6 Significance of the study 1.7 Scope of the study 1.8 Limitations of the study 1.9 Definition of terms CHAPTER TWO: 2.0 REVIEW OF RELATED LITERATURE 2.1 Concept of internal... Continue Reading
    TABLE OF CONTENT CHAPTER ONE: INTRODUCTION Background to the Study - - - - - Statement of the Research Problem- - - - Research Questions - - - - - - Objectives of the Study - - - - - - 1.5 Research Hypotheses- - - - - - 1.6 Scope of the Study- - - - - - 1.7... Continue Reading
    ABSTRACT Advertising is very relevant in modern business performance today. The public bumps into advertising messages, while watching TV, reading magazines, listening to the radio, surfing the internet or even simply working down the street, as advertising has a stimulating influence on purchasing behavior of the consumers. Empirical reviews has... Continue Reading