chapter  11
12 Pages

Relationship marketing

Such is the fiercely competitive nature of virtually all markets today that most companies operate in markets characterized by oversupply. Under these conditions, if a service does not satisfy, the customer can move on to find another company whose service does. In recent years there has been a refocusing of marketing away from customer acquisition to that of customer retention. If the company is to benefit from retaining customers, customers will also seek to benefit from giving their loyalty to the company. The refocusing on retention is predicated in the belief that improved

Organizations can grow business by attracting new customers, losing fewer customers and doing more business with existing customers. A combination of the latter two is generally a more efficient way of utilizing resources.1