MKT 300 Lecture Notes - Lecture 8: Customer Retention, Appurtenance, Collection Agency

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Fathima Saleem

Document Summary

Relationship marketing: building long-term satisfying relations with key parties customers, suppliers, distributers in order to retain their long term preference and business. No emphasis on building a relationship with customers. Customer acquisition generally costs more than customer retention. Business"s tend to focus on customer acquisition. Focus on attracting and retaining best customers / target these customers. Acquaintances satisfy and facilitate transactions reduce customers perceived risk and cost. Partners customized offerings & interactions loyalty focus on enhancing relationship. Confidence benefits less anxiety; risk of something going wrong ability to trust provider know what to expect get best level of service. Better prices, discounts, special deals unavailable to others (ex. Trust and loyalty leads to less price sensitivity. Tendency to spend more as relationship develops. Ability to gather and create customer databases for better segmenting and targeting of. Recency: length of time since a customer"s last purchase. Customer count: number of customers of a firm for a specified period of time.