Customer retention in service firms: three case studies of companies in the transport-logistic industry

Customer retention has increasingly become the focus of many companies’ strategy. Through three case studies of Swedish companies in the transport- logistic industry this thesis investigates the extend companies within the service sector can enhance customer retention through customer relationship management. CRM is a business approach that focuses on ways companies build customer relationships with their customers. Companies may choose to apply different parts of CRM to their business: through technology and other means of communication with customers, various training programs and other resources devoted towards the employees of the company. Evaluating past and present customer behavior makes it possible for companies to adopt the most effective business strategy. Findings indicate that to be able to attract and keep customers, i.e., increase customer retention rate, companies have to adopt a proactive approach – devote time and resources to stay in touch with customers. In this way companies not only can increase their competitive advantage but install a sense of seeking benefits not just for the company but for their customers. A major conclusion of the study is that companies must recognize the impact of local culture and market conditions on companies’ business performance. Companies have to realize that they not only have to do the right things but have to do the things right: by listening to customers and adopting a strategy based on common grounds with customers a company stands better chance to outrank competitors and be more efficient in building strong relationships with their customers; hence increase customer retention.

Author: Isaksson, Rebecka; Suljanovic, Mirela

Source: Luleå University of Technology

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