PAPERmaking! g FROM THE PUBLISHERS OF PAPER TECHNOLOGY Volume 1, Number 1, 2015
Doyle [6] conducted a study to investigate the variables which can help retain existing customers. The study identified price reasonability and call clarity as the strongest determinants of customer retention for the cellular industry of Pakistan. This study reveals that customer support services, value added services, user friendliness and customer complaints all had effects on customer satisfaction [7-9]. Causes of Desertion The causes of desertion are numerous and sometimes inter-related. To study them in greater detail and see their relative importance, this article analyses them separately. Figure 1 shows the general framework to analyse the causes of customer desertion. Desertion due to industry structure Growing competition: As a result of low entry barriers create a fragmented market with
numerous and diverse competitors. In general, the industry operates in fragmented markets, in which diverse participants in nature and size compete; as a result, the market share of each industry is diluted. A small business organisation may compete with a larger one, since they may not have significant cost disadvantages considering; ᇏ The high level of personalised service that is, in general, used throughout the industry which is difficult to automate or scale up.
ᇏ The very local clients.
Product and market adequacy: The basic model assumes a market that has to be developed, i.e. potential customers do not know the benefits of product company offers and that they have to be trained through an almost missionary activity where the representative visits nearby small towns. The implication of these conditions is that the customer is not profitable after the first visit but from subsequent ones, to recover expenses incurred in their product education. However, in the mature markets studied, customers have learned rapidly about the operation, convenience, advantages, and disadvantages of product and services. Many potential and current customers are well informed about the existence of the product offer, also having established an attitude towards it. Accordingly, business houses looking for new markets turn to segments with lower income or higher risk, where there is not necessarily the most adequate product, resulting in high attrition levels due to the lack of sustainability that incompatible product produces, or due the vulnerability of customers being approached. Regional economic factors : The micro entrepreneur’s regional economy also commonly influences desertion; this factor is related to the intuitive projection that the micro- entrepreneur makes on his or her future sales. The regional economy is an essential consideration in the decision to renew credit, regardless of the quality of the product offer. Although micro-entrepreneurs are capable of overcoming unemployment and managing
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Article 5 – Marketing (customers)
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