CHAPTER TWO
LITERATURE REVIEW
The Concept of Customer Retention Customer Retention is a marketing tool used in creating customer’s loyalty in order to retain them (Morns, 2007). However, Dennis (2008) opined that customer retention involves creating customer value through the improvement of products and services in order to satisfy customers so that an organization can retain their existing customers. The best customer retention programs proactively analyze customer behavior in order to identify and address at risk customers before they defect. However, when the loyalty program is not successful, it is usually up to the contact center to “save” the customer. Eective customer retention programs are enabled by customer relationship management (CRM) and analytics solutions. Formal and informal contact centers need these underlying systems in order to serve as the first line of defense for businesses of all sizes-small, mid-market and enterprise that threatened with losing their customers to competitors (Okoh, 2009).
