Cook, S. (2011), urges customer service providers must recognise that customers have different levels of expectations. The expectations are divided into two distinct categories namely:
1. Primary expectations – are the customers’ most basic requirements of an interaction.
Example: When dining at the restaurant, our primary expectations are to satisfy our hunger, to let someone else do the cooking, and pay a reasonable price
2. Secondary expectations – are based on our previous experiences that are enhancements of primary expectations.
Example: When dining at the restaurant, our secondary expectations are to have good service; to be treated with courtesy; and to receive good tasty food.
Understanding customer’s expectation …show more content…
Furthermore, the service experienced is transferable in the mind of the customer and serves as a point of reference for other purchases. When customers’ expectations are not met, they often experience a cognitive dissonance behaviour whereas when their expectations are not met, they experience a cognitive consonance or simply a consonance behaviour. Customers can only be retained in situations in which they experience Cognitive Consonance. It is important to meet and exceed customers’ expectations Cook, S. (2011) mentioned.
According to Donovan (2011), defined customer retention is the ability of a business to retain customers. It is both a measure of customer loyalty and the capacity of the business to keep customers satisfied by good service and quality of the product sold. The best customer for any business is the returning one. It shows that the customer is happy with both the service and the product but there are other benefits too. A returning customer is cheaper to the business, as they will need to spend less on advertising or inducements such as price-cutting and giveaways. A happy customer will also tell other potential customers of a product and service; doing a job of marketing for the …show more content…
Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace (Donovan,2011).
Donovan, (2011) further stated that customer retention is more than giving the customer what they expect; it is about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts ‘customer value rather than maximizing profits and shareholder value at the center of business strategy’. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service. Customer retention has a direct impact on profitability.
Machado, R. & Diggines, C. (2012), stated that while a growing business needs to capture new customers constantly, the focus and priority should be on pleasing the existing customer’s base. Companies that do not nurture their customer their customers will ultimately fail. For this reason, customers should be seen as an integral part of the marketing strategy of any