Customer retention is considered as a dependent
variable. In the past, many compannies did not care
about customers and took their customers for
granted. Customers often did not find any proper
substitution for current suppliers, or perhaps other
supplies were just as poor in a qualiity and services,
or the market was growing so fast that the company
did not worry about fully satisfying its customers.
A company could lose 100 customers in a week,
while gaining another 1000 customers in another
week and still consider its sales to be satisfactory.
According to the ‘leaky bucket theory’, these
companies, are operating on the belief that there
will always be enough customers to replace the lost
and can be compensated for (Kotler , 2005).
Customer retention is considered as a dependent
variable. In the past, many compannies did not care
about customers and took their customers for
granted. Customers often did not find any proper
substitution for current suppliers, or perhaps other
supplies were just as poor in a qualiity and services,
or the market was growing so fast that the company
did not worry about fully satisfying its customers.
A company could lose 100 customers in a week,
while gaining another 1000 customers in another
week and still consider its sales to be satisfactory.
According to the ‘leaky bucket theory’, these
companies, are operating on the belief that there
will always be enough customers to replace the lost
and can be compensated for (Kotler , 2005).
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