Chapter Summary Form
NameLei Lei Myint
Chapter 9.Managing the customer lifecycle: customer retention and development Chapter Summary In this chapter, we learn the company can retain, develop and sack customer. The economic argument for focusing on customer retention is based on four claims. These are what happens as customer tenure lengthens, the volume and value of purchasing increase, customer management costs fall, referrals increase and customers become less price sensitive. Have three measures of customer retention: raw customer retention rate, sales-adjusted retention rate, profit-adjusted retention rate. And know what kind of strategies for customer retention, customer delight, customer-perceived value, loyalty schemes. And more learn sales promotions, bonding, social bonds, structural bonds. And learning from research into customer commitment. More learn key performance indicators of customer retention programmers, the role of research, strategies for customer development. Customer development aims to increase the value of the customer by cross-selling or up-selling products and services to existing customers. The termination of customer relationships aims to improve the profitability of the customer base by divesting customers who show on signs of ever becoming profitable or strategically significant. Key Points
1. The economics of customer to target for retention 2. The distinction between positive and negative customer retention 3. The strategies for improving customer retention performance and growing customer value. Critical Questions
1. How to select which customers will be targeted for retention? 2. What kind of strategies is useful for the customer retention? 3. What is the key performance indicators of customer retention programmes?
Real Life Application
In reall life application, is make three core...