Customer Focus, Customer Performance, and Profit Impact - Profit impact of customer retention

4 important questions on Customer Focus, Customer Performance, and Profit Impact - Profit impact of customer retention

In what kind of market is it easier to gain customer retention even if you have a low satisfaction rate?

In a monopoly market.

Why is it very hard to get a high rate of customer retention in a competitive market?

Because it is easy to switch.

How to estimate customer retention?

  • Customer transaction records
  • Survey
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What are the three determinants of customer retention?

  1. Customer satisfaction
  2. Substitutes
  3. Costs of switching

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