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Role of Consumer Behavior in Customer Retention


Consumer behavior is that factor that affects the decision of the consumer in terms of purchasing anything or anyRole of Consumer Behavior in Customer Retention services. Customers have too many choices sometimes that they have to choose between them. Sometimes it happened that customer do not know what to choose between so many choices they have. Some people purchase for the fulfilling of their very essential needs. They do not purchase anything extra or irrelevant which is not needed. Sometimes customers purchasing nature depends on the emotions that even they do not need that thing necessarily but they purchase it. Consumer behaviour is an important factor that needs to be maintained properly and efficiently so that it provides the best results to customer in terms of making them to purchase only relevant and needed things or services. (Iresearchservices.com, 2018)

Task 1 Examine the Different ways that organizations deal with their customers

1.1 Analyze consumer behavior and identify patterns and differences in approach

  • Role of customer behavior

It is very important to know the consumer behavior of the organization before the introduction of any product. If any organization remain unable to know the consumer behavior about any particular behavior, then it is possible that the particular company may face the losses. The behavior of the consumer is one of the complex things and the reason behind it is that all the consumers have different attitude and mind. It is the consumer behavior, on the basis of which organizations make the decisions regarding what to produce, and for whom to produce and in what quantity. In short, the decisions of the firms and the success depend on consumer’s behavior.

  • Collecting customer information

The collection, as well as the storage of the information of the customer, is of the important part of any organization. On the other hand, there is also some legal requirement for the controlled information. One of the basic requirements is the privacy of the data or information that indicates that the business should keep the record of the customers private. It is necessary to have the record of what customers want to buy and why as well as the number of the time they want to buy that particular product. Then it is also necessary to know their opinion about any particular products. (Marketingteacher.com, 2018)

  • A system to store customer information

The collection, as well as the storage of the data that have good quality, is very crucial to the businesses in order to perform the activities of the businesses. However, it is also necessary to keep the record of the customer information secure. There should be a system of the CRM with the ability to collect the data and also make this thing sure that the vendors of the CRM have the foolproof system of security to the data of the customers that is critical. The companies should also have possessed the layered, holistic as well as the systematic approach to secure the important information of the customers. (Lava, 2018)

  • Access to information for appropriate personnel

There are different ways to access the information of the customers. On the other hand, there may also exist the laws that provide the support to access the information of the concerned people. That laws make it sure that the information of the customers is accessed only by the relevant personal and the particular information remain secure and just use for the business purpose according to the predefines ways. On the other hand, the companies should not provide the information of the customer publicly, and no common person has the right to access that particular information. (Gnb.ca, 2018)

  • Analysis of customer behavior

There are basically four reasons in order to make the analysis of the behavior of the customers. These reasons include the attainment of the insight of the behavior of the customers for the sake of finding more opportunities for the businesses. On the other hand, the retention of the customers is also one of the basic reasons for the analysis of data. The analysis of the data makes organization able to find out the ways to retain their customers. The analyses of the data also make companies able to attract more customers and engage them to refer to the particular businesses.  (Fern Halper, 2015)

  • List of data to inform marketing

The collection of the data of the customers as well as its analysis in order to get the insight of the customer’s experience is one of the fundamental ways to enhance the opportunities of the businesses. The data of the customers also have the ability to be utilized by the marketing department in order to increase the level of sales. Such type of data has the valuable customer’s information that indicates the behavior of the customers. The data that can be used by the marketing department for the promotion of the businesses include the name, address, designation, phone numbers and the number of time the consumer buy particular thing etc. (Toner, 2018)

  • Consumer service and quality system

Quality assurance is one of the important elements to make the business successful and also manage the customers by the entities of the businesses. In this regard, the quality system, as well as the consumer services, has the ability to play its role. It is the consumer’s services that can retain the customer and also assure them the level of quality of the particular products as well as the services. The consumer services operations should possess the attributes to satisfy the customers for the achievement of the goals as well as also provide the protection to the organization. (Markgraf, 2018)

1.2 Segment Costumers and Identify Target Groups

  • Demographic

The demography is basically the statistical attributes of the population of the human beings that are used particularly for the identification of the market as well as its trends. On the other hand, it is basically the statistical study that is conducted over the population of the humans and tells about the dynamics of the living populations. The aspects of the demography may include the changes with the passage of time, in the structure, population and size as well as the distributions of the population. It also indicates the information about the birth, death, aging as well as the migration of the population.

  • Socio-economic

The socio economics is basically the study of the social science that makes the study about the activities of the economy that has many effects on the behavior of the consumers and also indicates that in what ways the activities of the economy may provide the influence to the social process of the consumers. Such type of information usually collected in order to gather the data about the economic activities of the customers. On the other hand, this also has the ability o tell the purchasing power as well as the purchasing habits of the customer in order to redesign the businesses.

  • Geographic

The geography is one of the fields of the science that is associated with the study of the features, lands, phenomena of earth and inhabitants. This may involve the human as well as the physical geography. The geographic information of the human beings indicates the information of the people, culture, communities as well as their economies. Such type of information is also the part of the consumer, management system and may utilize by the organization for the advancement of the business as these are among the useful information for the department of marketing to generate the opportunities of the businesses.

  • Psycho graphic

This method is use to group the latest and the old customers on behalf of their beliefs, values, attitude, interests and other life styles as well. Sometimes we can observe these factors and sometimes we do not observe them clearly. When we identify these segments well only then we can easily be market our products or services better. Some products or services are dramatically different in the form of groups, geographic activities and other characteristics as well. Every person has a different nature and he or she must be deal by understanding their own natures so that proper segmentation may be done. (Bhasin, 2018)

1.3 Choice of Target Market

  • Justification for selected segment

The segment that is selected for the marketing segmentation is must be justified first. If you identify that what you are going to do then it would be better for you and for your market as well. The target market that you select must have all the details related to the age, location, education, needs etc. You must plan first that what you wanted to do because when you [plan you will be able to do act best in the market segmentation. The factors that offer the most potential in them you must get great results from that character. (Wagner, 2018)

  • Appropriate for message

The targeted plan or segment that you have selected for your marketing segmentation must be efficient enough that they can easily convey the selected message which you wanted to convey easily. The messages are compulsory to transfer because it is the way through which you can easily communicate with each other and can set goals for each other so that you can easily get the most targeted aim which you are going to manage about. The better you communicate with your target market the better you will be able get the best out of your target market.

  • Suitable media chosen

To choose suitable media for the advertisement of your target product or service that you have selected is the most important thing. The best thing is that you must select that media which makes you more popular and renowned among other targeted markets. The more you get fame about your target market the better you will be able to get success in order to achieve the success in achieving your goals. The best thing is that media will help you not only in making your target market renowned as well as it explores many unique ways as well to enhance your abilities.

  • Suitable activities chosen to appeal target

There are many of the activities you can do to enhance the working efficiency of your targeted market. To perform activities in improving the efficiency of your target market is very much important as it increases the working efficiency of your target market and explores many unique ways to achieve your targets in an efficient way. The activities must be according to the market you have targeted to achieve success in it. The best thing is that you must involve all the characters in your activities so that mutual benefit will be provided by you.

2. Develop Skills and Practices that will Support Customer Retention

2.1 Appropriate CRM (customer relationship management) and customer relationship marketing activities

  • System in use

Customer relationship management is a strategy that is use to appropriately manage the relationships among the organization. It is also important to manage the mutual interaction of the relationships between them. This system is very much important or beneficial for the organizations to create a more positive relationship with the customers which enhances their profit ratio and provides best success to the organizations. It is an appropriate system in which this strategy works. There is operational CRM that helps to manage the operations on daily basis. There is analytical CRM also present that helps in accepting customer’s feedback in order to improve the performance of system. Another CRM is also present which is called collaborative CRM that manages the interrelation system within the various departments of the organization. (Nibusinessinfo.co.uk, 2018)

  • Current Role of Staff

The staff is the most important factor or you can say it is the base of any organization’s or systems success that without staff it became impossible to take the organization at a height of success and to keep your system’s working efficient and continues as well. The senior management, the IT manger, The operational mangers, frontline and all other administrations managers and supervisors must be efficient enough to work best in the pressure or critical situations and must be able to get most efficient results for the organization. The staff handles all the activities and if it is not efficient enough then it became impossible to make the system successful. (Coursehero.com, 2018)

  • Service policies in use

There are many of the policies implemented and used in CRM in order to make the working in system very much efficient and successful. The policies that are followed are according to the need of the system and as well as according the working efficiency of the staff of the system. The best services by a CRM system is the IT department system’s services that deals with the security and safety of the CRM system as well as of the employees or staff dealing with that system. The services are only being made efficient when they are being monitored time-to-time. (Warwick.ac.uk, 2014)

  • Quality Bench marks used

The benchmarks are the metrics that are used to measure the technological factors in the CRM system. The best thing is that the matrices are able to contribute benefits and many of the disciplines can be made accurate and efficient enough in terms of making it more efficient. The technological factor in the CRM system use to lead you towards the success of the system and as well as towards the improvement in quality and efficiency of the system in the organization where this system is implemented. The better systems will provide the better performance in success in the organization.  (Davey, 2018)

  • Quality of Customer services

The quality of the services that any CRM system provides to the customer under an organization is the main thing that must be focused by every organization. Customers are those who take your organization at the height of achieving success because they are going to use your products or services. The quality of the services must be defined after the feedback of the customer that what actually they wanted to have from you. If the services are according to the customer’s will than it will make your customers consistent with you. (Datanova.com.au, 2018)

  • Available data on customer satisfaction

The customers get themselves satisfy when they will get the data that they wanted to know about. The services or the product that they are going to take from the organization they needed to be the best in terms of getting the best services as they are paying for that and when customers pay for something their expectations becomes high then it became the responsibility of the organization to fulfill that expectations at a best level.

2.2 Explain and provide examples of Customer Retention Practices for Different Industries

  • Loyalty Schemes

To keep your customers satisfy with your services and to keep your customer sticks to you must take best care of your customers retention services means you must delight your customer by providing them those strategies that are according to the actual need of the customer from your organization. You must keep updated the data of your customers and you must keep them connected with you by continuously giving them alerts about the services you are providing to them. (Yotpo.com, 2018)

  • Targeting Group of Customers

Every organization must target some of the areas and they must focus on them with great efficiency and best performance as a must. The customers are of different types and each customer want unique services and with special great attention as a must. Every organization must made different department for different services and must target each customer to make every customer satisfy. The targeted customer feels special if he is being given a special attention and he will continue taking your services to fulfill their satisfaction needs.

  • Product development to meet customer needs

There must be invented many of the different products in the organizations to help customers because many of the time customer needs different services with respect to different offers organization provide to the customers. When there are a variety of products or services then it became easy for the customers to choose among them because every customer need is different.  The more variety you will offer to the customers the better they rely to you in terms of taking services in different aspects.

  • Adapting Marketing Mix

Marketing mix basically are the services or actions that a company performs in terms of promoting their products or services which they are offering to the customers. It is basically the set of tools and techniques that fulfills the task of an organization. Marketing mix has four types price, product, promotion and place. All these factors are necessary to be taken care amount them with lot of care and with great attention along with time-to-time. They also contain packaging, positioning, people and sometimes politics as unique marketing mix factors.  (Economictimes.indiatimes.com, 2018)

  • Personalizing marketing

Personalizing data is the making of the strategies and techniques that enables the companies to work according to a proper system and with best interest of them in order to take the high rate of success. The services and products are given to the customers by working on the personalized marketing in terms of working with efficiency and proficiency as a must. (Manthei, 2018)

  • Choice of media for promotion

All the organizations that are offering services or products to the customers must advertise themselves in order to promote their business. If you do not advertise your business efficiently then people do not be able to know about your organization and as well as this strategy makes your profit high as more people will contact to you for services or products.

2.3 Create examples that Demonstrate the Concept of Adding Value to the Customers

  • Loyalty Schemes

Adding value to customers is that thing that makes the organizations to focus on the customers’ needs and to provide them the best possible solutions for their problems. To make the customer loyal with your organization you must satisfy them with best services and with great performance as a must. The customer became more consistent with you if you satisfy them with the service which they wanted to have. (HUGHES, 2017)

  • Considering Customers Perspective

Customers have different perceptions while having any purchase they wanted to have unique and different things that can only be possible just because of considering their beliefs and values with the best possible outcome of the purchasing behavior in terms of fulfilling their needs. (Winsky, 2018)

  • Consistently Improve Customer Satisfaction

The customer is the basic factor of the success of the organizations. Every organization must implement or make such policies that satisfy their customer at every stage. Customers satisfy only when if their needs are being fulfilled by the organizations they concerned with for their needs. The main thing is that once you satisfy any customer then they will remain with you through the time they need services for any other thing as a must. (Stewart, 2018)

Also Study: Analysis of Consumers Behavior of  Online Shopping Especially in Stirling City


Summing up all the points we can say that consumer behavior is the decision making of the customer in terms of making any choice in the purchase. People have too many choices sometimes but when they have too many choices they do not make any decision so where it is needed organizations must provide the services in terms of satisfying the needs of the customers in terms of making right choice for the customer.

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