Building customer retention through relationship marketing : a qualitative approach

Abstract

As the shift from transactional marketing to relationship marketing has become a common practice within the local supply industry, a more direct and personalised approach of customer interaction is nowadays practiced amongst businesses, with the scope of acquiring customer retention for long term profitability. The research focuses on the customers’ interaction with a local importer and distributor – supplying catering establishments. The thesis realises an understanding of what retains customers to the supplier given the competitive situation locally. The objectives set, were to determine; how customer relationship marketing can increase customer retention, identify product factors leading to customer retention and to understand whether the role of technology influences in establishing customer retention. The objectives assisted to structure questions for interviewing purpose, in the aim of determining whether they are of influence in building customer retention within the local supply industry. Ten participants were selected for the purpose of the qualitative research to gather a better understanding of what the participants seek to remain supplier loyal. During the interviews, participants emphasised that through relationship marketing a more personalised approach enhances their position with the supplier, as opposed to the previous traditional marketing. Adopting such practice enables suppliers to assist and understand better their customers’ requirements. This results in a mutually beneficial exchange allowing customers to remain loyal towards the supplier. Through analysing the set objectives it was also realised that the product does have an influence in customer retention, given that the quality, consistency and commitment are met from the suppliers end. Technology, on the other hand plays a minimal role presently within the local supply industry, due to various constraints and limitations in contrast to the fast paced online environment. The research encountered an understanding of the importance of communication as well as other emergent themes such as competition, commitment, trust and loyalty, product quality, technology and social media impact also being identified. The themes assisted to better understand the existing customer, allowing suppliers to acknowledge efforts towards building and retaining the best rapport with the customers for long-term profitability.