A COMPARATIVE ANALYSIS OF CAUSES OF CUSTOMER RETENTION AND ROYALITY IN

Many organizations have step by step strategized their operations with customer loyalty in mind in a bit to servicing customers better. Instead, most have adopted improvement programs ad hoc, and paybacks haven't materialized. Building a strong loyal customer base must be integral to a company's basic business strategy. The economic benefits of high customer loyalty are measurable in terms of profit, market share and market lead. When a company consistently deliver superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring new customers goes down. The better economics mean the company can pay workers better, which sets off a whole chain of events. Increased pay boosts employee morale and commitment; as employees stay longer, their productivity goes up and training costs fall; employees' overall job satisfaction, combined with their experiences, helps them serve customers better; and customers are then more inclined to stay loyal to the company. Under customer loyalty, a company must understand the relationships between customer retention and the other parts of the business--and be able to quantify the linkages between loyalty and profits. It involves readdressing and assigning four important aspects of the business: customers, product/service offering, employees, and measurement systems.