Sunday 27 February 2011

CUSTOMER RETENTION PROGRAMME

 
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UNIVERSITI TEKNOLOGI MARA PAHANG
FAKULTI SAINS GUNAAN
IJAZAH SARJANA MUDA SAINS (KEPUJIAN)(TEKNOLOGI PERABOT)
MKT 501
TITLE:
CUSTOMER RETENTION PROGRAMME
NAME:
1)     SHUHAILA BINTI JOHAR (2009729251)
2)     NOOR MAZLIANA BINTI HASSAN (2009538801)

CLASS:
AS227 4A

DATE SUBMITTED:
21 FEBRUARY 2011




 CUSTOMER RETENTION PROGRAMME
            The true meaning of customer retention is the subject of some controversy. In fact, the easiest way to approach retention is from the negative which is retention means that the customer has not defected or the customer remains active. Some marketers take an action-oriented, and essentially conservative, stance, insisting that the true meaning of retention is repurchase. There is some logic to this argument since repurchase is the source of conversion to customer profitability. The term repurchase presents an attractive metric for assessing performance. Upon acquisition, the stage typically associated with the initial purchase, thus the strategic objective of a company with new customers is to stimulate repurchase.

Customer is our key of surviving in doing business. The failure to fulfil customer needs is failure to the business. Its meaning that customer is very important, without them we are null. Nowadays, customers are educated and know well their right “Kuasa Pengguna” as promoted by Ministry of Domestic Trade, Co-operatives and Consumerism. Customers are able to evaluate what they want to buy because there are many ways they can find it. Customers are human being; they are born with various needs and want to fulfil their way of life.
Company must learn and know well their customer to retain their survival. Customer always seeks for better customer relations or customer care. However, quality of the product or service is the number one. Almost of today customer is generation Y who are more complicated and fussy, they always want a company that can offer customer retention programme. Customer retention programme is a process that offers various activities that lead to customer loyal to the company.
Lately, most of business entity in Malaysia, they have their own customer retention programme. Basically the programme is similar but they have their own value added that differ to other company. The value added is always attracting customer to stay with them and increasing numbers in new customer.
One of the customer retention programmes is give rewards when spending more. This means, company gives rewards to the customers for free when the customers spend more in buying the products from the company. The examples of the rewards are giving cash, goods, voucher and others. As examples, when customers spend more than two hundred ringgit, they will be entitling for that reward. Company who practices this programme is clothing section such as John Master. They give rewards such as towel, bags and belts for free when buying their products. For rewards in monetary voucher, it will encourage customers to use that voucher at another time and resulted the customer will come again to buy the products in the company. This way will give customers extra items and value when they shopping or buy the products. At the same time, the customers will spend more to get extra rewards and give benefit to the company in gaining customer relationship
The other customer retention programmes is buy with buy. Buy with buy is when the customer spends at certain or specific price, they will entitled to buy another items or goods with lowest price than the market price. Currently, MYDIN Store is practising this way where when the customers buy their products more than hundred ringgits, the customers enables to buy the several items from the MYDIN store for a lowest price such as soap, biscuits and others.
Membership also one of the customer retention programme that always being used in attract the customer to retain their customer loyalty. This membership programme will offer better and extra benefits to their customer. Visually, to be a member, they are required to pay some fees but the value of benefit that they will receive is greater than the fees. Members will receive special member’s card to prove they are members and eligible to receive all of the benefits for members. The company who practices the membership programme is Jusco SDN BHD. They offer their customer to be their member and give many benefits to them such as specially priced supermarket items and free parking when they presented their member’s card. By using the member’s card, the customer also can get special offer and special discount at specific time when buying the company’s products.
Many company used the programme of point collection on every purchasing. This means, for each purchasing, they enable to have the amount of point based on their purchased value. By using the membership card state above, the point can be collect from any purchased from the company. Besides, we can get a point for every ringgit that we spend in buying their products if we present the members card to the cashier while purchase the products. Then, the point collected can be added and be more if more purchased are made and the customer can use the points to exchange the points with the products or gift from the company. This programme gives many benefits to customer satisfaction in making purchases in the company. This programme is practised by the Jusco SDN BHD, Bonuslink, Tesco and other company that provide the membership card.
To create a loyal customer in buying the product from company, the company usually used the programme that offers the services after making their sales. Normally, the offer of services comes from the warranty of the products. Usually the products that have a warranty are electrical products. It is to ensure the equipment works well when used and to give satisfaction to customers who use them. If the product cannot function in a warranty time period, customers will be sorry and will not buy the product again if there is no action from the company. It is important for company to give after sale services to create customer’s friendly in retain their relationship with the customer. This is because each company must care with their customer’s satisfaction in using their products. Through the good after sale services, the problem of products can be solve the faster and keep the customer still interested to buy another products from the company.
Besides, establishing a detailed client database will allow these companies to keep track of personal information and individual preferences of all their customers. This enables them to provide better service and value. As an example, a corner grocery store owner kept information on 200 customers in his head but the large superstore can now keep track of 20,000 customers through its customer database. With effective implementation of customer databases, companies will be able to re-establish contact with customers, and will be able to work successfully towards increasing customer retention, repeat sales, and customer referrals.
In addition, by performing an event oriented communications in which the customer is genuinely interested will make them become satisfied with the products or services. A variety advantages from customer retention program also can be achieve by enhanced and empowered customer, after sales, and technical support.  This will make the customer loyalty become much better and thus it will achieve the objective of the customer retention program.
Thus, it can be said that the customer retention programs focus on helping the clients to identify key moments across every customer touch point that maximize loyalty and drive incremental revenue. Besides, the holistic, customer experience-based retention strategy employs statistical models to examine the impact of reward programs, communication channels and employee-to-customer interactions leading to customer retention and satisfaction as well as optimal investment against tangible activities that drive loyalty.
In retaining customer to create loyalty among them, every aspect above must be an ideal package and programme to ensure the successful customer retention in the company. Company should create the concept that can always make the customer remember their products with their services. This means, with the ideal programme or package that given from the company to the customers, the customer will always find their products and make their products as a one of the their favourite company to go and favourite products to buy.

REFERENCES



1 comment:

  1. assignment not properly organised. No introduction. Body. No conclusion. Too brief for a semester report.

    ReplyDelete