Customer Retention
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200 words - What are the costs associated with low customer retention?
200 words - What are the ethical and risk factors involved in e-commerce?
200 words - Why is customer satisfaction the key driver to achieving organizational goals and objectives?
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Solution Summary
The solution addresses the costs associated with low customer retention, the ethical and risk factors involved in e-commerce, and customer satisfaction.
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200 words What are the costs associated with low customer retention?
The costs are great. When a company has low customer retention, it always has client turnover. When a company cannot rely on its current customer base, there will come a time when the turnover is more significant and the company will have financial losses. When the losses are greater than the gains, the company will falter.
"The importance of building customer relationships is apparent when one considers that it is much more costly to get new customers than to keep existing ones. In addition, existing customers often purchase more than new customers (Weiser, 1995). Under conditions of high purchase-related risk, a buyer is much more likely to purchase from a supplier/salesperson who has invested the time necessary to develop a close relationship with that customer" (Boles 1996).
This is an important factor when operating a business. The competition is always waiting for new customers and when a company has poor customer relation management, the consumer will freely walk right to the competition.
When the consumer leaves, he or she takes his or her dollars with them. The goal for all business is to keep the customer at all costs, not alienate the customer.
"In the marketplace, and particularly in service environments, salespeople often perform a vital boundary-spanning role that links their firm to customers" (Boles 1996). Keep the sales staff trained and current on product changes, as a knowledgeable salesperson can retain the client ...
Education
- Master of Business Administration, University of Phoenix
- Bachelor of Science in Paralegal Studies, Kaplan College
- Business Diploma, Katharine Gibbs Business College for Women
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