Customer Management Research Paper Example | Topics and Well Written Essays - 3250 words

Customer Management - Research Paper Example â€Å"Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely†.(Wikipedia,2017) With the cost of customer acquisition rising, retention is a priority for banking institutions. Majority of the products and services offered by a bank can be easily replicated by another bank, the only factors on which they can differentiate are price, customer management and quality. Thus, customer retention is potentially the solution that banks can use to gain an upper hand and survive in an extremely competent banking industry(Inkumsah 2013). â€Å"As per Harvard Business School report, on average, increasing customer retention rates by 5% increases profits by 25%-95%†(Anon 2017). Customer Retention helps in advances in revenue generation, p roduct development, marketing, customer feedback, branding, differentiation, along with causing less stress to bank employees, getting more interaction and feedback from the customers. Analytics play an important part in banks' retention strategies. Banks, by using analytical techniques on appropriate enablers can see a significant increase in new customers and elongated relationships with existing ones.