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Graduate Thesis Sample

Graduate Thesis Example from Professional Writers

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Graduate Thesis Sample on Business

Applying Customer Service to Achieve Customer Retention

Since early 1980s, the shift in marketing theory with more emphasis has shifted from individual sales to ensuring effective customer service as well as relationship with the customer. There has seen tremendous improvements in technological applications in terms of database management systems and software.  In 1990s, these have made it easy for a change in focus from with effective customer service being regarded as the core of marketing solutions. Customer’s satisfactions tend to be overwhelmed and it has not been easy to achieve the expectations of sales from a number of companies due to their poor methods of relationship with customers. Despite the different definitions of customer service, this paper provides a holistic approach towards application of customer service as a method of ensuring customer satisfaction as well as retention. The literature review of this paper provides methods of providing customer service as a way of ensuring customer loyalty. It provides useful frameworks that can be used to serve customers to ensure they are loyal to the business. The methodology sections gives technique in which the customer retention may be obtained. The results section gives the analysis of the study from the findings. The conclusion section gives the summary of the findings and the review of the study.

Background of the Problem

When customers are loyal, the level of success which can be attained by a business is beyond explanation.  This is because; they are the most important people in determining the extent of sales and profitability of the business.  The profits realized from such transactions can be used for settling costs such as, expenses involved in production of an item or improvement of sales by advertising.  Customer service is considered the most important process of ensuring customers are retained and also other customers are attracted into the business.  When loyalty is maintained, customers are likely to attract even more customers to ensure further loyalties to the company.

In the current world, there are a number of challenges that face economies with so many companies trying to compete for customers to ensure their survival.  There are a number of customer relationship management practices and techniques that are considered important in keeping customers loyal to the company and even attract other customers.  The implementation of these customer service practices can assist a business to develop loyalty from the most profitable buyers in their operations (Yaowalak, 2008).  This study is being conducted because a customer usually considers his time more valuable and expects businesses to make their appointments happen at the agreed times.  It has been realized for greatness to be achieved, there is the need to keep time as much as possible.  This study will show there is a need for communication between customers and the companies and the availability of customers is important (Ruben, & Nicholas, 2007).  Customers do not like paying for services which are below standard.  In order to achieve customer satisfaction, there is the need to sell the highest quality products, because satisfied customers are the contributing factors in the growth of a company rather than saving resources and materials (Van Ree, & McLennan 2007).  It has further been determined to have a high level of employee retention, there is the need to offer reasonable compensation.

It has also been found that there is the need to have problems solved and developing company policies which ensure that, the rights of consumers are awarded. This paper, therefore tries to explain some of the warranties that are provided in the business world so that the image and reputation of the company remains high in the market and customers are retained.

Statement Problem

While trying to improve the conditions of their businesses, most companies rush quickly towards improving the amount of sales instead of improving the level of quality of their services. In addition, organizations focus on improving employee ranks and do not consider improving customer retention. Currently a lot of emphasis is put on improving customer satisfaction. Howver, satisfied customers is not enough and it has been found necessary to improve their loyalty by ensuring they are retained by the business. Most businesses have also realized that if customers are not satisfied with the levels of their services, there is less likelihood that customers will turn over at your business in the subsequent occasions. This has called for the need to come up with an important transformation of the way businesses view their services to customers. It is the process where customers are transformed from being satisfied to being loyal. This is because a satisfied customer is not necessarily a loyal customer. Businesses have also realized that it requires a lot of hard work and ensuring constant attention to customers and being diligent in providing services with outstanding consistency.

Purpose of the Study

Through the results of the study in this paper, an insight is developed regarding the importance of customer service to the profitability of a business.  It explains the process as the results of developing a good customer service technique.  The research also gives an insight into the ways in which customers can be retained and the additional benefits of attracting more loyal customers to the business.  The paper explains the significance of effective customer information handling which makes connections with customers easy and ensures the connection with customers is simplified and customers are reached at the right time when they need goods or services provided by the company.  The study also involves research in areas related to customer service to substantiate on the validity of the theoretical insight provided in the literature review.  The results of the survey show whether the information provided by literature review are right or wrong.

Significance of the Study

By ensuring customers are satisfied, businesses are able to remain competitive in their areas of operation and ensures customers repeat purchases in the same businesses. By being able to achieve certain amount of loyalty from its customers, a business ensures that customers do not move away from making purchases in the location and the share of the company on customers on a particular location becomes extremely high. Despite the fact that not all customers will demonstrate the same level of loyalty, it is clear that customer loyalty is directly related with increased sales.

This has called for the need to develop customer loyalty methods that ensures satisfied customers are retained by the business. This paper provides methods that can be used to ensure customer satisfaction and also ensuring their loyalty to the business. It proposes a range of services such as provision of differentiated products in ensuring differences between products and services is a factor that ensures customers do not make purchases in the company. The paper shows the effects of providing differentiated products and services in comparison with similar companies that do not provide differentiated products and services

Problem Statement

Customer loyalty is not determined by the quality of a product produced but the level to which customers are served and treated by employees of a company.  This research will provide deeper insight to achieve customer loyalty.

Research Questions

The study has been conducted to determine how effective customer service will result in improved customer retention.  A number of research questions have been formulated to assist in solving the problem.  Some of the questions this research tries to answer are:

  • What are the ways in which customer service can be regarded as effective to ensure customers are satisfied with the manner in which they have been served?
  • What are the effects of improved customer service on customer retention?
  • What are the steps towards effective customer service


There is s relationship between the level of customer service and the level of customer retention by a company.

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