Customer Retention Strategies

The services industry is the most important sector in the economy. It contrib. to more than half of the GDP for most developed nations in the world. It also provides 70% employment to the world population. One of the most important services in Malaysia is the financial and banking services. The banking services have undergone tremendous changes since the last decade. The introduction of islamic banking system has changes the way we do business. Despites the introduction of internet banking and the sophistication of technology, services failure happen sometimes. Customers today are very much quality oriented and they expect to have superior quality of services every time when they consume it. When services failure happen, they defect to other services providers. thus service firms lose customers, business and revenues. Business firms must recover to stay in business. Firms must satisfy the customers so that they will return to more purchases, inform good word of mouth of the firm by recommending it to other prospective customers when they themselves become satisfied and pleased about it. The service recovery strategies may cover such orientation as firm, customer, employee, atonement and justice. This book is about how service managers could apply those recovery strategies to retain their customer for life-time profit and other benefits.