Customer Retention
Introduction
Mercedes Benz is a German automobile manufacturer founded by Daimler Motoren Gesellschaft in 1901. Mercedes not only specializes in luxury automobile, they also manufacture buses, coaches and trucks. In Germany, there is a name in the manufacturing industry known as the “German Big 3”; these 3 companies consist of Audi, BMW and Mercedes.
Mercedes was always known for its quality and durability in its product. It has done well in keeping its name for over a century. There are many different classes developed to cater for the ever demanding customers. Some of the classes are C, D, E, G, K, L, R, S, T class. Also, Mercedes reputation is also build in the Formula One scene.
1. Customer retention
Customer retention is an assessment that an organization takes to measure the customer defection. It is important because retained customers tend to spend more, need lesser loyalty cost and they tend to refer someone to your business. Therefore, it is deemed as an important aspect in growing a sustainable business.
The number one goal of all companies in retaining their customers is making customers feel special. A video on Youtube suggested that “When was the last time you made a referral for a business? Is it because you don’t have any referrals? Or you feel that they (the business) don’t really appreciate your business”
When a business makes the customer feels special, they would become more valuable to a business because they will practice repurchase. They would also be more open to a business continuing to educate the customers. According to a research done by Harvard Business School, they suggested that “by increasing customer retention rates by 5%, it increases profit by 25% to 95%”. (HBSWK) This shows that customers feel appreciated by using the slightest effort in customer retention. A little effort can go a long way.
For all of that to happen, customer retention strategy is needed. Customer retention strategy is the steps taken to keep the customer
Mercedes Benz is a German automobile manufacturer founded by Daimler Motoren Gesellschaft in 1901. Mercedes not only specializes in luxury automobile, they also manufacture buses, coaches and trucks. In Germany, there is a name in the manufacturing industry known as the “German Big 3”; these 3 companies consist of Audi, BMW and Mercedes.
Mercedes was always known for its quality and durability in its product. It has done well in keeping its name for over a century. There are many different classes developed to cater for the ever demanding customers. Some of the classes are C, D, E, G, K, L, R, S, T class. Also, Mercedes reputation is also build in the Formula One scene.
1. Customer retention
Customer retention is an assessment that an organization takes to measure the customer defection. It is important because retained customers tend to spend more, need lesser loyalty cost and they tend to refer someone to your business. Therefore, it is deemed as an important aspect in growing a sustainable business.
The number one goal of all companies in retaining their customers is making customers feel special. A video on Youtube suggested that “When was the last time you made a referral for a business? Is it because you don’t have any referrals? Or you feel that they (the business) don’t really appreciate your business”
When a business makes the customer feels special, they would become more valuable to a business because they will practice repurchase. They would also be more open to a business continuing to educate the customers. According to a research done by Harvard Business School, they suggested that “by increasing customer retention rates by 5%, it increases profit by 25% to 95%”. (HBSWK) This shows that customers feel appreciated by using the slightest effort in customer retention. A little effort can go a long way.
For all of that to happen, customer retention strategy is needed. Customer retention strategy is the steps taken to keep the customer
References: Gregory.C,15 Customer Retention Strategies. Available from: http://www.helpscout.net/blog/customer-retention-strategies-that-work/> [5 November 2014] Frederick. F.R, Phil. S, The economics of E-Loyalty. Available from: <http://hbswk.hbs.edu/archive/1590.html> [5 November 2014] Facebook Mercedes-Benz Malaysia. Available from:<https://www.facebook.com/MercedesBenzMalaysia> [ 5November 2014] BMW MALAYSIA. Available from: <http://www.bmw.com.my/com/en/index.html> [5 November 2014]