In managing the business which provides pure services to the customer, company need to ensure that the service delivered is meeting with expectation and satisfied the customer. The quality of services is considered to be a critical success factor for the service companies. Service is close conceptual as well as empirical link to customer satisfaction turned it into the core marketing instrument, making it the most researched area in services marketing (Fisk et al., 1995; Bolton et al., 2000). In addition, the accumulated research has linked positively the service with profitability (Fornell, 1992). It is very important to retain the customer. But, nowadays, the service provider needs to identify other factors that lead to customer retention rather than provide a quality service. On this study, researcher has chosen Swiss Inn Sungai Petani as a base company to do research on factors that influencing customer retention, and downsize the study into room services. According to the current situation, there are some factors recognized which have influence to the customer retention. There are customer satisfaction, customer trust, and product value.
Currently, Swiss Inn Sungai Petani on their way for maintaining and retaining their present and existing customer. For information, over than 70% income of Swiss Inn Sungai Petani comes from the government and private function, while the rest from other customer. The problem or issue was come out after much consideration regarding the current situation face by Swiss Inn Sungai Petani. As we know, the economic condition of our country is quite not good nowadays. In addition, there are some other factors such as instability political situation, many competitors, and so on. As companies that provide service as main output to bring profitability, customer retention is very important.
Swiss Inn Sungai Petani plan offering comfortable yet elegant accommodation and quality service, this fully equipped inn also provides state of the art business and convention facilities. So that, they can build a stronger and meaningful relationship with their current and target customers.
The sole purpose of a business Peter Drucker once famously claimed was “to create a customer”. However, keeping the customer has become regarded as equally, if not more important since Dawkins and Reinchheld (1990) reported that 5 per cent increase in customer retention generated an increase in customer net value of between 25 per cent and 95 per cent across a wide range of business environment. It is so important to keeping the customer other than getting the customer. Since there are many competitors around this area, SISP really need to concern on how to retain their customer in order to avoid switching from them to other hotel service provider.
1. COMPANY BACKGROUND
• Swiss Inn Background
Swiss-Inn Sungai Petani, (SISP) is the three star hotels that ideally located in Malaysia’s northern industrial zone. Swiss Inn Sungai Petani is an ideal place for city dwellers and business travelers to hold meetings, events, seminars and conferences. This hotel was owned by Swiss Garden International Hotels, Resorts, and Inns, which have 7 network hotels all over Malaysia. Located in the middle of the town, Swiss Inn Sungai Petani has many potential in pursuing a successful hotelling business. A rapid development in this area can be prove by the existence of new building, shop lot, shopping centre for example, Tesco, Village Mall and so on. This hotel is headed by Mr. Louis Sebastian as the Hotel Manager and there are over 80 staffs or manpower’s to generate the operation of the hotel. Swiss Inn Hotel Sg. Petani is rated as three (3) star hotel and that why it don’t need too much employee or staff as compare to four (4) or five (5) star hotel. SISP was beginning their operation on 18th May 1996. After 5 years operation, SISP was awarded as a three star...