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Customer
Retention: The key to Business Performance
K Ramakrishnan
Strategic Marketing Research Team
Customer retention is not given the attention due to
it, by most firms. It has been found that customer retention
has more impact on profits than market share, economies
of scale and other variables that are considered to
provide competitive advantage to a firm. In fact, it
has been found that companies, which reduced customer
defections by 5 per cent, could boost profits from 25
per cent to 85 per cent. |
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