Are Retained Customers Automatically Loyal: A CRM Study

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ACKNOWLEDGEMENT

I certify that the work presented in the dissertation is my own unless referenced

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First of all, it would give me great pleasure to show my gratitude to my professor, for his propositions, remarks, understanding and patience. It would also be an honour to express gratitude to my parents, my mother, my father, my sister and my brother for their endless support in my life and allowing me to make all my decisions. I would also like to take the opportunity to show appreciation to my co-workers for their expert cooperation on every occasion. I would also like to be grateful to the Department, managers of the university, instructors and students who have supported me throughout this research.

DECLARATION

I declare that the content presented in this thesis/dissertation is, in my understanding and opinion, original and has not been presented for scholarly assessment in the past, either completely or partly, for an academic degree at this educational institution or elsewhere. I would also like to admit that I have studied and understood the principles, prerequisites, processes and guidelines of the University regarding the higher academic degree research award and to my dissertation. I would also like to declare that I have abided by the University's principles, prerequisites, processes and guidelines.

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ABSTRACT

In this thesis, the focus is on customer retention and loyalty under the realm of customer relationship management. The satisfaction level of the customers distinguishes a successful enterprise from and unsuccessful enterprise. Customer satisfaction eventually leads to customer retention and customer loyalty. The two terms are different in terms of customer satisfaction. This involves that the all the customers should be managed as an asset of the enterprise to ensure potential lifetime customer loyalty and revenue generation. In the era of advancing technology and competitive scenario, the role of CRM in this context cannot be denied. Lately, the rapid changes in the global economic and technological environment, the behaviours of consumers are also changing. Therefore, those retailers who could not cope with these sudden changes are not able to compete. Hence, they end up closing the business. Numerous studies about the loyalty of customers have been published; however, there is still a gap, which occurs due to the changing behaviour of consumers. This is why I have more interest in this subject. However, the purpose of this study is to analyse the existence of a relationship between retaining customers and their loyalty level with the organisation.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Problem Statement2

Objectives2

Significance of the Study3

CHAPTER 2: LITERATURE REVIEW4

Introduction4

Misconception of Retained Customers Are Automatically Loyal5

Customer Retention7

Customer Loyalty8

Customer Retention versus Customer Loyalty9

Customer Relationship Management Strategy10

Focus on Customer Satisfaction10

Reducing Switch cost11

Tesco's Customer Loyalty in UK12

Summary13

CHAPTER 3: METHODOLOGY14

Sample14

Informed Consent15

Ethical Concerns15

CHAPTER 4: RESULTS17

Results of Questionnaire Survey17

Development of CRM Model for a Comany43

Customers Lifecycle in CRM44

Attraction Phase45

Maintenance Phase46

Retention Phase46

Summary48

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS49

Conclusion49

Recommendations and Further Study50

Summary51

REFERENCES52

APPENDIX58

Appendix A: Consent form58

Appendix B: Questionnaire Survey59

Appendix C: Responses to Questionnaire61

Appendix D: List of Charts63

CHAPTER 1: INTRODUCTION

Background of the Study

The organisations have ...