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er the product or service fulfilled the needs, wants and expectations of the customer. Reichheld (2004) proposed that “an improvement in the customer satisfaction rate has direct and indirect effects on company revenue. The direct effect is customer retentions rate's effect on number of customers possessed by the company. The indirect effect is customer retention rate's effect on average customer tenure, and average customer tenure's effect on yearly spending of the average customer”. Reichheld (2004) suggested that customer satisfaction is considered to be an important aspect in any business. It is vital because it helps in customer loyalty, and loyal customers are the ones which buy the product or service repeatedly. Reichheld (2004) further mentioned that nowadays companies, firms or organizations are working hard to satisfy the needs, wants, expectations and aspirations of the customers. Satisfied customers tell others about the company and this helps in getting new customers.

Buttle (2009) found out that Dawkins and Reichheld (1990) discussed that “Customer retention is the number of customers doing business with a firm at the end of a financial year, expressed as percentage of those who were active customers at the beginning of the year”. Buttle (2009) further mentioned that companies generate better results when they manage their customer base in order to identify, acquire, satisfy and retain profitable customers. Good quality services help to enhance customer satisfaction, it also helps attracting new customers through word of mouth, helps increasing the productivity, increases market share and profitability, minimises the risk of losing customers. In order to achieve the desired business results good customer relationship is the key.

Ahmad and Buttle (2001) proposed that customer retention can also be defined as “The maintenance of continuous trading relationships with customers over long term. Customer retention is the mirror image of customer defection or churn. High retention is equivalent to low defection”. Buttle (2009) further suggested that managing customer retention and tenure intelligently generates two key benefits for companies; reduced marketing costs and better customer insight. The former argued that customer retention rate should not be measured in one year it rather depends on the customer repurchase cycle.

Wang et al (2003) discussed that happy customers are important to success in any firm, organisation or a company. If the desires, expectations of the customers are fulfilled, it means that there will be an increase in the market-share and will result in generating high revenues. Reichheld (2004) proposed that when there is customer loyalty the customer retention is high and the business results tend to follow. On the other hand the customer retention rate decreases if the desires of the customers are not fulfilled and satisfied and eventually the competitors will get the advantage. In order to retain the customers a company, firm or an organisation needs to identify the vulnerable customers. Wilson et al. (2008) proposed that getting new customers is expensive, the process involves advertising, promotion and sales costs as well as start-up operating expenses. The longer a customer remains with the company, the more profitable th本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。