Customer Retention

Better Essays
Introduction
Mercedes Benz is a German automobile manufacturer founded by Daimler Motoren Gesellschaft in 1901. Mercedes not only specializes in luxury automobile, they also manufacture buses, coaches and trucks. In Germany, there is a name in the manufacturing industry known as the “German Big 3”; these 3 companies consist of Audi, BMW and Mercedes.
Mercedes was always known for its quality and durability in its product. It has done well in keeping its name for over a century. There are many different classes developed to cater for the ever demanding customers. Some of the classes are C, D, E, G, K, L, R, S, T class. Also, Mercedes reputation is also build in the Formula One scene.

1. Customer retention
Customer retention is an assessment that an organization takes to measure the customer defection. It is important because retained customers tend to spend more, need lesser loyalty cost and they tend to refer someone to your business. Therefore, it is deemed as an important aspect in growing a sustainable business.
The number one goal of all companies in retaining their customers is making customers feel special. A video on Youtube suggested that “When was the last time you made a referral for a business? Is it because you don’t have any referrals? Or you feel that they (the business) don’t really appreciate your business”
When a business makes the customer feels special, they would become more valuable to a business because they will practice repurchase. They would also be more open to a business continuing to educate the customers. According to a research done by Harvard Business School, they suggested that “by increasing customer retention rates by 5%, it increases profit by 25% to 95%”. (HBSWK) This shows that customers feel appreciated by using the slightest effort in customer retention. A little effort can go a long way.
For all of that to happen, customer retention strategy is needed. Customer retention strategy is the steps taken to keep the customer



References: Gregory.C,15 Customer Retention Strategies. Available from: http://www.helpscout.net/blog/customer-retention-strategies-that-work/> [5 November 2014] Frederick. F.R, Phil. S, The economics of E-Loyalty. Available from: <http://hbswk.hbs.edu/archive/1590.html> [5 November 2014] Facebook Mercedes-Benz Malaysia. Available from:<https://www.facebook.com/MercedesBenzMalaysia> [ 5November 2014] BMW MALAYSIA. Available from: <http://www.bmw.com.my/com/en/index.html> [5 November 2014]

You May Also Find These Documents Helpful

  • Better Essays

    Customer Retention

    • 1365 Words
    • 6 Pages

    Customer Retention Strategies The easiest way to grow your customers is not to lose them The average business loses around 20 percent of its customers annually simply by failing to attend to customer relationships. In some industries this leakage is as high as 80 percent. The cost, in either case, is staggering, but few businesses truly understand the implications. Imagine two businesses, one that retains 90 percent of its customers, the other retaining 80 percent. If both add new customers…

    • 1365 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Customer retention

    • 442 Words
    • 2 Pages

    Customer Retention Literature Review Customer satisfaction holds considerable significance in corporate sector as with no satisfy and dedicated customers, you don't have a trade. A review conducted on college students in Bahrain indicated that adolescent consumers places more stress on factors like a bank’s repute, openness of bank personnel, suitable locality, 24/7 ATM, and accessibility of parking, in selecting their banks (Almossawi,2001). There is an mounting gratitude that the final purpose…

    • 442 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    FOUR SQUARE (42) VALUES OF CUSTOMER RETENTION IN EMERGING MARKET SCENARIO: A NEW PARADIGM Mr.Ch.Trinadha Rao, Asst. Professor Miracle School of Management, Miracle Educational Society Group of Institutions (Approved by AICTE, New Delhi & Affiliated to JNT University, Kakinada) Kongavani Palem, Bhogapuram, Vizianagaram (Dist)-535216, Andhra Pradesh, India…

    • 3753 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention by Harkiranpal Singh May 2006 UCTI Working Paper WP-06-06 The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention Harkiranpal Singh Asia Pacific University College of Technology & Innovation Technology Park Malaysia Bukit Jalil, 5700 Kuala Lumpur, Malaysia May 2006 kiran@apiit.edu.my Abstract To be successful, organizations must look into the needs and wants of their customers. That…

    • 3382 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    In the world of marketing, there are many techniques that are used to promote new products and services and customer retention programs. Sales promotion techniques are a powerful way of getting the marketing message across to all marketing channels, and are becoming increasingly sophisticated in order to be "seen and heard" in such a crowded market. Our company is aware that there may a small loss of market share, and wants to do something important and drastic to make that occur. We will call our…

    • 827 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Customer Retention: With Special Reference to Telecommunication Industry in Sri Lanka K. A. Silva Lanka Com Services (Pvt) Limited, Colombo, Sri Lanka S. T. W. S. Yapa Department of Decision sciences, University of Sri Jayewardenepura, Nugegoda, Sri Lanka samanyapa@sjp.ac.lk ABSTRACT The landscape of the telecommunication industry in Sri Lanka has been changed drastically since the deregulation of telecommunication sector in early 1990s. Number of service providers has been increased…

    • 5868 Words
    • 24 Pages
    Powerful Essays
  • Better Essays

    ABSTRACT CRM (Customer Relationship Management) is an integrated approach to identifying, acquiring, retaining and delighting customers. The purpose of this thesis is to analyze the impact of Customer Relationship Management Process on Customer Retention with reference to Banking Sector. We describe the objectives of Customer Relationship Management (CRM) in Customer Retention which is very important for the survival of companies in today’s competitive environment. CRM helps organizations maximize…

    • 4730 Words
    • 19 Pages
    Better Essays
  • Good Essays

    the follow up work and at last coming up with a printed format of the enquiry reply form to assist the marketing team Project 3: The third project was again in The Forum Mall and this time it was to increase the loyalty of the customers via face book by conducting many contests etc. on the other side the in house brands would get a free space for their promotions in return to the free gift vouchers. Convincing the brands to take part in this program is also part of it.…

    • 22873 Words
    • 92 Pages
    Good Essays
  • Satisfactory Essays

    Why Customer Retention Is So Important Good customer retention is vital to any organization because a slight reduction (5%) in the customer defection rate has a disproportionately positive effect on profitability (depending on the cost of acquisition, ranging between 25 and 80 %!). Companies with high retention also grow faster. However, customers can only be retained if they are loyal and motivated to resist competition. When customers are merely satisfied with the service they receive they may…

    • 361 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Loyalty Programs play a significant role in a company’s customer retention plan. They help motivate consumers in choosing a company over their competitors by offering monetary rewards or special treatment rewards to loyal consumers. Loyalty Programs were first introduced to Canadians in 1958 when A.J. Billes decided to boost gas bar business by giving away Canadian Tire 'Money '. (Canadian Tire Corporation, 2010). Canadian Tire ‘Money’ is still a very successful loyalty program that millions of…

    • 1777 Words
    • 8 Pages
    Best Essays