What Is The Impact To The Business When Customers Are Not Treated Well?

What Is The Impact To The Business When Customers Are Not Treated Well?

Research Question

What is the impact to the business when customers are not treated well?

Introduction

Standard business loses approximately 20 percent of its customers annually just by failing to focus on customer relationships. In several industries this outflow is as high as 80 percent. The cost, in either case, is stunning, but few businesses truly understand the implications. Customer loyalty, the term is all about the phenomenon of attracting the right customer, get them buy your product, but often and buy in higher quantities and can also create referral and do constructive word of mouth for your product. Customer loyalty is build by treating your customers the way they want to be treated.

Customer loyalty is the relationship between the individual's repeated buying behaviors and attitudes towards a specific brand. Customer Loyalty cannot be measured easily as it varies with different products in different industries. The most important impact in the loyalty of a customer depends upon the market segment which is targeted. Thus, a company should understand as to whom they are targeting, the customer's demographics, psychographics, and their geographical location. Market segment may have people with different characteristics who have a demand for the similar product depending upon the features of that product like its price, quantity, function and quality (Bernd, 2008).

Various retention programs can help to sustain the customer, discount coupons can be provided to the frequent customers, lucky draw coupons in which the customer can win various prizes on the purchase of the product. An online program can be made which can help out the customers to stay in touch as to what offer the company is giving to its loyal customers. Customer services play the most important role in their retention. Online system should also be updated in order to provide satisfactory services to the customers. Customer service is a relationship between service providers and their customers. Nevertheless, from beginning of the industrial revolution to the early 1960s, the only relationship that existed was between the manager and the worker. However, in the last two decades, the relationship between managers and workers has expanded to become a triad that includes the customer as a role player in organizations' success. The change from a dyad relationship to a triad came about because customers became more educated and demanded a role in the process.

Factors Impacting Customer Retention and Business

Customer retention is worth something nurturing. If a business gets able to retain their customers consistently, it will have competitive advantage and can generate more revenues. Following are the factors which impact the customer retention:-

Core offering

The companies have to focus intently on what they know to attract the type of customers they want, and have firmly concentrate on delivering what is expected every time. Core offering elements include location and premises, services, and the product have a large role in retaining ...