ABSTRACT

This chapter discusses methodologies for achieving customer retention, and focuses on the importance of an effective complaint management system. It describes the process and the benefits of chi-squared automatic interaction detection (CHAID) for improving customer retention. Economic causes of commitment describe situations in which it is financially disadvantageous for one party to end the business relationship. The goal of psychological customer commitment is to establish an emotional relationship, in which at any time it is possible for the customer to change, but where the possibility is excluded because of personal preferences. Customer commitment via the product quality itself can come about, for example, through a product development process shared by the customer and the provider. The success of customer cards depends on the functions and services offered, in that should amount to a genuine benefit for the customer. Companies attempt to bind the customer to them with ingenious service offers and systems of discount.