Customer retention: a potentially potent marketing management strategy

Publisher Website
Google Scholar
Abstract
The traditional marketing approach advocates the marketing mix principles and the quest for market share dominance through mass marketing techniques and a focus on new customer acquisition. This approach has guided managers for decades in planning and implementing their marketing strategies. However, several authors have drawn attention to the inadequacies of the traditional marketing approach, which led to the birth of relationship marketing (RM). RM advocates supplier–customer interaction and maintaining long-term relationships with a focus on customer retention. Customer retention, in the traditional marketing approach, is however seen as the 'end' rather than the means to delivering long-term profitability to firms. This paper discusses key issues pertaining to customer retention management, namely its definition, forms of measure, benefits and potential strategies for application. It uses examples from a variety of contexts. It is proposed that customer retention should be part of the strategic marketing planning process. Customer retention, we envisage, is a potentially potent marketing management strategy. Further research is also recommended.

This publication has 0 references indexed in Scilit: