CUSTOMER ACQUISITION AND RETENTION MANAGEMENT …International Journal of World Research, Vol: I Issue XXVI, February 2016, Print ISSN: 2347-937X ... retention within retailing sector

International Journal of World Research, Vol: I Issue XXVI, February 2016, Print ISSN: 2347-937X

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CUSTOMER ACQUISITION AND RETENTION MANAGEMENT IN

RETAIL INDUSTRY-WITH SPECIAL REFERENCE TO VILLUPURAM

DISTRICT

Dr. K. VIJAYARANI

Professor and Head, Commerce Wing, DDE,

Annamalai University, Annamalainagar-608 002, Tamilnadu

Mrs. R. BRINDHA

Ph.D., Research Scholar, Manonmaniam Sundaranar University,

Abhizhegapatti, Tirunelveli-627 012

ABSTRACT

Customer retention is beyond satisfying and maintaining existing customers. Hence, attention on this area

is greatly needed in order to further improve the firm’s performance. It is believed that customer retention strategy

will be a great management tool for retailers to survive and grow in the very competitive retailing industry. The

findings of this study in addition to the implications given are expected to enlighten the practices of customer

retention within retailing sector. This article paper highlights customer acquisition and retention management in

retail industry-with special reference to Villupuram district.

KEY WORDS: Customer Acquisition, Customer Retention Management, Retail Industry, Customer Preferences,

Organised Sectors

INTRODUCTION

Consumers play a vital role in business. They are the backbone of a business. Sale of any product or

service comes from two ways. One is through existing customers (repeat sales) and another is through new

customer (fresh sales). Nothing may seen more obvious than the need to keep customers coming back as

cultivating loyal customers can lead to increased sales and customer share and lower cost. But here the challenge is

to retain the existing customers. Retaining existing customers needs a totally different set of strategies than

attracting new customers every time. Now - a - days, it is very difficult to retain customers owing to reasons like

competition in the market place, customer education and awareness about the products and brands, deficiencies in



customer care, ever changing customer preferences for products, accessibility of products in the market, etc.,

Hence marketers are equally focusing on attracting new customers into their fold, which is relatively easier one. As

a result, sales are mostly through first time purchases also. Now the question before the marketers is how to drive

customers towards their products. Advertising, sales promotion, personal selling are some of the important

strategies being used for this purpose. In some cases, they bring desired sales to the firm. Now, the crux of the

problem with business houses is how to acquire new customers on one hand and on the other, how to retain

existing customers.

Retail

Retail is the process of selling consumer goods and/or services to customers through multiple channels of

distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying

consumers' wants and needs through a lean supply chain.

Retail is defined as relating to the sale of goods directly to consumers. An example of retail is selling

shirts to customers in a clothing store.

Acquisition of Customers

A customer acquisition strategy defines the best mix of media and engagement tools (lead generation and

product offers) to gain new customers through targeting them and reaching them through online and

offline customer journeys.

Customer acquisition refers to gaining new consumers. Acquiring new customers involves persuading

consumers to purchase a company‟s products and/or services. Companies and organizations consider the cost of

customer acquisition as an important measure in evaluating how much value customers bring to their businesses.

Customer acquisition management refers to the set of methodologies and systems for managing customer

prospects and inquiries that are generated by a variety of marketing techniques.

Customer Retention

Customer retention is the strategic objective of striving to maintain long-term relationships with customers.

Customer retention is the mirror image of customer defection. A high retention rate is equivalent to a low defection

rate. The number of customers doing business with a firm at the end of a financial year expressed as percentage of

those who were active customers at the beginning of the year.

REVIEW OF LITERATURE

Wang and Lo (2002) identified the “Service Quality, Customer satisfaction and behaviour intentions”,

relationship between the Service Quality Factors, Overall Service Quality, Customer Value, Customers

Satisfaction and Behaviour Intentions. The significant impact is identified between the tangibles, reliability on

overall service quality; assurance and empathy on overall service quality, tangibles, empathy, network quality and

customer sacrifice on customer value, reliability, assurance and Network quality on customer satisfaction and

customer value and satisfaction on behaviour intentions.

Lather and Kaur (2006) in their study on Malls in India analysed the influence of selected attributes on

store patronage for doing shopping. The authors highlighted that shopper decision on retail format depends upon

store characteristics. Keeping these facts, the researchers had studied the nine characteristics of Malls to elaborate

the enthralling shopping experiences. The study provided academics, Mall developers and retailers a richer

understanding of various components that contribute to malls experiences.

Angana Borah and A.P.Singh (2008) “Emerging Issues in the Organised Retail Sector: A study of

Guwahati city” opined that a retail image that appeals to part of retailers. The retail image is strengthened through

the shopping experiences that a customer.



Sengupta and Noopur Agarwal, (2008) “In-Store Promotion - A relevant Promotional tool in Organised

Retailing”, estimated the organised retail pie to comprise clothing, textiles and fashion accessories 40 per cent,

food and grocery 19 per cent, durable 13 per cent, footwear 9 per cent, Jewelry and watches, home

doctor 7 per cent, books, music and gifts 3 per cent, beauty products 2 per cent and others 7 per cent.

Jai Awatramani, and et .al (2009) “Customer Shopping Behavior - Organised & Unorganised Retail in

Mumbai, India”, They concluded that items which are purchased on daily basis will be preferred on basis of

closeness to the stores- organised or unorganised, for items which customers prefer to purchase once in a week

have a higher probability in going in for organised retail.

Mahesh, D and et. al, ( 2011) “A Study on Intention and Attitude of Consumer Behaviour towards Retail

Stores in Chennai District, The study found out that there was significant difference among the gender, age of the

respondents and factors of shopping intention. The study concluded that an understanding and knowledge of

various factors that led to shopping intention and attitude of the consumer would help the retailers to climb the

high ladder in the market.

NEED FOR THE STUDY

In order to sharpen the marketing mix companies have been moving from marketing at the aggregate level,

called Mass Marketing, to Mass customization to the level of 1-to-1 marketing where each customer is treated as a

separate segment. The factors that have weighed heavily on this decision are the need to fine-tune the marketing

strategies and the realization that the cost of retaining customer (read servicing) an existing customer is much

lower than acquiring a new customer.

SCOPE OF THE STUDY

The Indian market has seen vast changes in political, economical and social environment, which has a great

impact on consumption. With the Indian as well as international corporate entering into the Indian retail scenario

the market has been divided between the traditional and the organized sector. The Indian retail scenario is

presently facing the similar situations as the mom and pop stores in the developing nations faced at the emergence

big box retailers. There are various issues that need to be addressed, like what would be future patterns of

consumption, which formats of retail would be preferred by customers and will the rise of organized retail affect

the traditional retailers.

STATEMENT OF THE PROBLEM

In the present scenario, customer motivation and satisfaction is under the control of business people and

especially retailers. The situation of market and trends in price of commodities, mainly, under the control of these

departments. They can raise the prices and they can down the prices according to the market situation.

The growth and development of any retailers are depending on their marketing skills and business

performance. The marketing skills depend on two factors, i.e. nature of commodity and attitude of customer

towards the commodity and the business performance depends on marketing situation and schemes introduced to

attract the customers. These two factors are depending on role and performance of neighborhood shops. It is

necessary for a retailer to measure the sort and long term activities performed to attract and motivate customers.

This is very much needed in retailing especially neighborhoods shops to develop significant sales of food and

grocery to the customers.

The researcher identifies the following problems are as under: changing economic environment, heavy

initial investments, Malls to elaborate the enthralling shopping experiences, expectations and store atmosphere

evaluations, financial and mobility restrictions, Influence patronage intentions, affects consumer format choice

decisions, modern technology is another problem the retail industry faces, Despite security measures, theft,

shoplifting, and fraud are ongoing problems for retailers, Consumer tastes and preferences can change rapidly and

greatly affect demand for retail items. Fashion fads and product life cycles can be unpredictable and companies



may struggle to make merchandising decisions, correct assortment is a major concern for retailers, checking

pricing with competitors whilst both shopping on and offline, accurate gauge of demand is critical for retail

planners, lack of retail space, Trained manpower shortage, Thinking outside the box to improve productivity,

innovation and competitive advantage, Improving efficiency, time and speed of delivery, engaging retaining and

growing talent. Hence, in the present study on customer acquisition and retention management in retail industry-

with special reference to Villupuram district.

OBJECTIVES OF THE STUDY

Hence, the present study attempts customer acquisition and retention management in retail industry with

special reference to Villupuram district.

1. To study the shopping intention, location, store loyalty, retail sales service to analyse the shopping

attitude, and to identify the determinants of shopping habits of customers‟ acquisition and retention

towards organised retail store in Villupuram district.

2. To analyse the factors influencing customers‟ opinion towards prefer organised retailing in Villupuram

district.

3. To ascertain customer satisfaction and service quality regarding organised retail stores in Villupuram

district.

TESTING OFHYPOTHESIS

Null Hypothesis for customer acquisition and retention management in retail industry, keeping in mind the

above objectives following Null Hypotheses are framed and tested.

H01: There is no significant difference between type of retail industry and customer acquisition practices.

H02: There is no significant difference between type of retail industry and customer retention practices.

H03: There is no significant difference between demographic profiles of the respondents with respect to (a) growth

of retail industries, (b) strategies for growth of retail industries, (c) customer acquisition (d) strategies for

customer acquisition (e) customer retention and (f) strategies for customer retention.

H04: There is no significant difference between quality of services important in the retail store and store location

of the respondents.

RESEARCH METHODOLOGY

The study is based on both primary and secondary data. The primary data are those which are collected a

fresh and for the first time and thus happens to be original in character. The questionnaire is too designed and

supplied to the respondents for collecting primary data. In this method, a questionnaire is sent to the persons

concerned with a request to answer the questions and return the interview schedule.

Research Methodology is a way to systematically solve the research problem. It may be understood as a

science of studying how research is done scientifically. To do my study I have adopted exploratory research

design. The primary data is collected through interview schedule from customers and questionnaire from retail

stores.

DATA COLLECTION

Data will be collected using both primary as well as secondary method.

Primary Data

The primary instrument for data collection in this research was questionnaire and well-structured interview

schedule. A detailed interview schedule was prepared to know the buying pattern and to seek the opinion of the

customers who responded to the same and questionnaire was prepared to collected data from owner, managers and

employees of various retail outlets.

Initially, before asking questions, a good rapport was established and good cooperation of the customers



was solicited. Then the questions were asked in a structured order. All kind of doubts of the customers was

clarified to get the most truthful answer from the customers.

Secondary Data

Secondary data were collected from owner, managers and employees of various retail outlets, previous

studies, retailer‟s records, Research papers, Marketing Journals, Magazines, Text books and websites.

Sampling Design

Primary data will be collected using structured interview schedule and questionnaire. The population of the

study comprises of customer visiting retail stores. For the selection of respondents simple random sampling

method is adopted. The respondent under study belongs to different demographic groups like sex, gender, marital

status, geographic location, occupation, educational level, income level, size of the family members and so on. A

total sample size of 720 out of which 400 customers and 320 employees from retail stores will be approached to

participate in the study. A pilot study will be conducted on 20 customer and 10 employees from retail stores to

finalize the interview schedule and questionnaire items.

STATISTICAL TOOLS AND ANALYSIS

To analyze the level of satisfaction, retaining and acquisition among the retail store brands, the data were

collected from the different types of respondents based on their educational qualifications, occupation, family size,

monthly income, amount spent on retail store per month, type of retail store, quantity of retail store purchase, place

of purchase and mode of payment which were studied by means of percentage analysis, descriptive analysis

(mean, standard deviation and coefficient of variation), ANOVA, t-test, chi-square test, correlation analysis, factor

analysis. The reliability and validity analysis of the data in this study was analysed using Statistical Package for

Social Sciences (SPSS v 20.0). The different tools of analysis and the variables studied are as follows:

ANALYSIS AND INTERPRETATION

The demographic profile of the respondents is analyzed on the basis of their gender, age, marital status,

geographic location, education, occupation, monthly income, size of the family members and nature of family.

Table 1: Demographic Profile of the Respondents

Demographic Profile No. of Respondents Percentage

Gender

Male 258 64.50

Female 142 35.50

Total 400 100.00

Age (in years)

Up to 30 years 85 24.50

31 – 40 Years 61 15.50

41-50 Years 125 31.00

Above 50 Years 129 29.00

Total 400 100.00

Marital Status

Married 322 80.50

unmarried 78 19.50

Total 400 100.00

Geographic Location

Rural 165 41.25

Suburban 99 24.75

Urban 136 34.00

Total 400 100.00



Education

Up to SSLC 92 23.00

HSC/ Diploma/ITI 97 24.25

Graduate 110 27.50

Post graduate/ Professional 101 25.25

Total 400 100.00

Occupation

Agriculture 44 11.00

Business men 62 15.50

Employed 210 52.50

House wife 61 15.25

Student and Others 23 5.75

Total 400 100.00

Monthly income

(in Rs.)

Less than Rs.10,000 99 24.75

Rs.10,001 to Rs.20, 000 117 29.25

Above Rs.20, 000 184 46.00

Total 400 100.00

Size of the family

members

Small (≤3) 153 38.25

Medium (3-5) 121 30.25

Large (above 5 ) 126 31.50

Total 400 100.00

Nature of Family

Joint 186 46.50

Nuclear 214 53.50

Total 400 100.00

Source: Primary Data

Table 1 reveals the demographic profile of the respondents of the customer acquisition and retention

management in Villupuram district. Out of 400 respondents, 64.50 per cent were male and 35.50 per cent were

female. The predominant age group of the respondents (31 per cent) was distributed in the age group 41 to 50

years. A good majority of the remaining respondents (29 per cent) were distributed in the age group above 55

years. 24.50% and 15.50% of the respondents were distributed in the age groups up to 30 years and 31 to 40 years

respectively. The married category of respondents constitutes 80.50 per cent and 19.50 per cent are unmarried

category of respondents. The geographic location of the respondents constitutes highest of 41.25 per cent of the

respondents belong to rural, 34 per cent of the respondents belong to urban and 24.75 per cent of the respondents

belong to suburban. The highest literacy rate (27.50 per cent) of the respondents is graduate, 25.25 per cent of the

respondents have got post graduate/professional education, 24.25 of the respondents have HSC/ Diploma/ITI

qualification and 23 per cent of the respondents have up to SSLC qualification. The occupation represents that 48

per cent of the respondents are employee, 14.25 per cent are house wife, 14 per cent are businessmen, 13.25 per

cent are students and others and 10 per cent are agriculturalist. About 46 per cent of the respondents have monthly

income of above Rs.20,000, 29.25 per cent have Rs.10,001-20,000 as monthly income and 24.75 per cent of the

respondents have the monthly income of Rs. Less than Rs.10,001. Out of total 38.25 per cent of the respondents

family size of less than or equal 3 members, 30.25 per cent of the respondents family size of 4 to 5 members and

31.50 per cent of the respondents family size of above 5 members. The nature of family size represents that 53.50

per cent are nuclear family and 46.50 per cent of the respondents are joint family towards the respondents in the

customer acquisition and retention in the retail industry in Villupuram district.



TESTING OF THE HYPOTHESIS

The following null hypothesis has been formulated and one way ANOVA is applied to test the significant

difference between qualities of services is important for the shopping preferences of the respondents and retail

store location.

H01: There is no significant difference between quality of services important in the retail store and store

location of the respondents.

Table 2: ANOVA for Quality of Services and Store Location

Store location

N Mean S.D. Std. Error

95% Confidence F value Sig.

Lower Bound Upper Bound

Convenient

Location of the

Store

Agree 15 4.47 0.64 0.17 4.11 4.82

2.714 0.030*

Strongly Agree 61 3.82 0.87 0.11 3.60 4.04

Neither Agree

nor Disagree 11 4.45 0.69 0.21 3.99 4.92

Disagree 222 4.20 0.99 0.07 4.07 4.33

Strongly

Disagree 91 4.14 0.96 0.10 3.94 4.34

Total 400 4.15 0.96 0.05 4.05 4.24

Ease in

Identifying the

Store

Agree 15 2.87 1.30 0.34 2.15 3.59

47.760 0.001*

Strongly Agree 61 1.51 1.12 0.14 1.22 1.80

Neither Agree

nor Disagree 11 2.18 1.08 0.33 1.46 2.91

Disagree 222 3.23 1.30 0.09 3.06 3.41

Strongly

Disagree 91 3.99 0.38 0.04 3.91 4.07

Total 400 3.10 1.36 0.07 2.97 3.23

Ease of

Reaching the

Store Location

Agree 15 4.20 0.56 0.14 3.89 4.51

3.303 0.011*

Strongly Agree 61 3.89 0.64 0.08 3.72 4.05

Neither Agree

nor Disagree 11 4.27 0.65 0.19 3.84 4.71

Disagree 222 4.31 1.00 0.07 4.17 4.44

Strongly

Disagree 91 4.11 0.55 0.06 4.00 4.22

Total 400 4.19 0.85 0.04 4.11 4.28

Near my

Shopping Area

Agree 15 4.27 1.03 0.27 3.69 4.84

16.541 0.001*

Strongly Agree 61 4.03 0.48 0.06 3.91 4.16

Neither Agree

nor Disagree 11 4.27 0.90 0.27 3.67 4.88

Disagree 222 4.68 0.70 0.05 4.59 4.78

Strongly

Disagree 91 4.18 0.64 0.07 4.04 4.31

Total 400 4.44 0.73 0.04 4.37 4.51



Near my Work

Place

Agree 15 3.87 1.41 0.36 3.09 4.65

25.957 0.001*

Strongly Agree 61 2.57 1.15 0.15 2.28 2.87

Neither Agree

nor Disagree 11 3.73 1.49 0.45 2.73 4.73

Disagree 222 4.07 0.94 0.06 3.94 4.19

Strongly

Disagree 91 3.26 1.27 0.13 3.00 3.53

Total 400 3.64 1.22 0.06 3.52 3.76

Ease of Traffic

Flow

Agree 15 4.00 0.38 0.10 3.79 4.21

2.444 0.046

Strongly Agree 61 3.84 0.66 0.08 3.67 4.01

Neither Agree

nor Disagree 11 3.82 0.60 0.18 3.41 4.22

Disagree 222 4.07 0.73 0.05 3.98 4.17

Strongly

Disagree 91 4.12 0.33 0.03 4.05 4.19

Total 400 4.04 0.64 0.03 3.97 4.10

Ease of

Communication

Agree 15 4.67 0.49 0.13 4.40 4.94

6.723 0.001*

Strongly Agree 61 4.87 0.46 0.06 4.75 4.99

Neither Agree

nor Disagree 11 4.64 0.92 0.28 4.02 5.26

Disagree 222 4.17 1.42 0.10 3.98 4.35

Strongly

Disagree 91 3.97 0.84 0.09 3.79 4.14

Total 400 4.26 1.20 0.06 4.14 4.38

Source: Computed from primary data, *Significant at five per cent level

The calculated F value of 2.714, 47.760, 3.303, 16.541, 25.957, 2.444 and 6.723 to the above respective

variables of store location is significant at five per cent level. The value indicates that there is a significant

difference between qualities of service is important in the retail store and store location of the respondents. Hence,

the stated hypothesis of “there is no significant difference between qualities of service is important in the retail

store and store location of the respondents” is rejected.



PROMOTIONAL OFFER IS IMPORTANT FOR THE SHOPPING PREFERENCES OF THE

CUSTOMERS AND STORE LOYALTY

The following null hypothesis has been formulated and chi-square is applied to test the significant

association between promotional offer is important for the purchases of the respondents and retail store loyalty.

H02: "There is no significant association between the promotional offers is important in the purchase and store

loyalty”

Table 3: Promotional Offers and Store Loyalty

Count

I prefer this shop for my regular shopping

Total Not at all

important

Not

important

Moderately

important Important

Very

Important

Attractive

promotional offer is

important in the

purchases

Disagree 9 5 46 11 1 72

Neither Agree nor

Disagree 0 0 3 13 2 18

Strongly Agree 4 7 0 119 82 212

Agree 1 0 0 81 16 98

Total 14 12 49 224 101 400

Source: Primary data

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 293.352a 12 .000

Likelihood Ratio 267.607 12 .000

Linear-by-Linear

Association 96.760 1 .000

N of Valid Cases 400

a. 8 cells (40.0%) have expected count less than 5. The minimum expected count is .54.

Source: Computed from Primary data

The calculated chi-square value of 293.352 is statistically significant. Hence, the stated hypothesis of “there

is no significant association between the promotional offers is important in the purchase and store loyalty” is

rejected.

Table 4: Promotional Offers and Store Loyalty

Count

I prefer to shop at this store even if another store Advertises some

deal Total

Not at all

important

Not

important

Moderately

important Important

Very

Important

Attractive

promotional offer

is important in the

purchases

Disagree 7 0 51 4 10 72

Neither Agree

nor Disagree 2 1 3 2 10 18

Strongly

Agree 29 54 3 37 89 212

Agree 55 9 1 6 27 98

Total 93 64 58 49 136 400




Chi-Square Tests

Value df Asymp. Sig. (2-sided)


Likelihood Ratio 261.723 12 .000

Linear-by-Linear


N of Valid Cases 400

a. 4 cells (20.0%) have expected count less than 5. The minimum expected count is 2.21.

Source: Computed from Primary data



rejected.

Table 5: Promotional Offers and Store Loyalty Count

I occasionally prefer this store for major shopping Total Not at all

important Not

important Moderately important

Important Very

Important

Attractive promotional offer is

important in the purchases

Disagree 0 0 0 54 18 72 Neither Agree nor Disagree

0 0 0 6 12 18

Strongly Agree 24 24 8 41 115 212 Agree 2 2 1 9 84 98

Total 26 26 9 110 229 400


Chi-Square Tests Value df Asymp. Sig. (2-sided)


Likelihood Ratio 141.976 12 .000 Linear-by-Linear


N of Valid Cases 400 a. 9 cells (45.0%) have expected count less than 5. The minimum expected count is .41.

Source: Computed from primary data



rejected.

H03: There is no significant difference between education and service quality of the retail stores.

Table 6: ANOVA for Occupation with Customer Preferences and Service Quality of the Retail Stores

Occupation N Mean S.D. Std.

Error

95% Confidence F value Sig. Lower

Bound Upper Bound

Store loyalty

Agriculture 25.26 3.34 0.51 24.22 26.30 25.26

50.806 0.001*

Business men 26.46 1.32 0.18 26.11 26.82 26.46 Employed 29.83 2.85 0.21 29.42 30.23 29.83 House wife 24.77 3.33 0.44 23.89 25.66 24.77

Student and Others 27.28 3.33 0.46 26.37 28.20 27.28 Total 27.82 3.54 0.18 27.47 28.17 27.82



Store location

Agriculture 16.26 1.45 0.22 15.81 16.71 16.26

23.271 0.001*



Customer perception

Agriculture 48.14 0.35 0.05 48.03 48.25 48.14

84.525 0.001*



Customer satisfaction

Agriculture 41.93 1.77 0.27 41.38 42.48 41.93

35.636 0.001*



Service quality Tangibility

Agriculture 18.43 1.17 0.18 18.06 18.79 18.43

33.393 0.001*



Reliability

Agriculture 17.38 1.03 0.16 17.06 17.70 17.38

10.193 0.001*



Responsiveness

Agriculture 18.81 1.23 0.19 18.42 19.19 18.81

89.732 0.001*



Assurance

Agriculture 18.57 1.06 0.16 18.24 18.90 18.57

19.023 0.001*



Empathy

Agriculture 26.14 0.35 0.05 26.03 26.25 26.14

53.688 0.001*



Source: Computed from Primary data, *Significant at five per cent level

The calculated F value of store location (F 50.806), store loyalty (F 23.271), customer perceptions (F

84.525), and customer satisfaction (F 35.636) is significant at 5 per cent level. The value indicates that there is a

significant difference between the occupation and customer shopping preferences in the retail stores. Hence, the



stated hypothesis of “there is no significant difference between occupation and respondents shopping preference of

the retail stores” is rejected.

Similarly, the calculated value of service quality of tangibility (F 33.393) reliability (F 10.193),

responsiveness (F 89.732), assurance (F 19.023) and empathy (F 53.688) is also significant at five per cent level.

The value indicates that there is a significant difference between the occupation and service quality of the retail

stores. Hence, the stated hypothesis of “there is no significant difference between occupation and service quality of

the retail store” is rejected.

FINDINGS OF THE STUDY

The strategy for acquiring high value customers from competitors has the highest acceptance score of 3.85,

follows the differentiation and targeting the valuable new customers with acceptance score of 3.84 and

strategic identify and target new customer opportunities with acceptance score of 3.83 towards the

strategies of acquisition process in the retail sector. The respondents assign the least score for front line

employees‟ performance evaluations depend largely on how well they acquire new valuable customers

(mean 2.93) towards the strategies of acquisition process in the retail sector.

To retain valuable existing customers is seen by employees as essential for the unit‟s success, leaders

clearly defined mission driven by customer retention and a system to segment existing customers based on

their economic value is highest dominant factors followed for the customer retention with respective mean

score of 3.59, 3.48 and 3.44.

To maintaining relationships with existing valuable customers is viewed as more, management

communicates the importance of retaining the existing valuable customers and across the unit employees

agree that being able to retain valuable existing customers is the key to our competitive advantage with

respective mean score of 3.06, 2.96 and 2.49 towards the practices to be followed to customer retention

process in the retail industry.

There is a significant difference between type of retail industry and customer acquisition practices.

There is a significant difference between type of retail industry and customer retention practices.

SUGGESTIONS AND RECOMMENDATIONS

Customer retention strategies are not strictly independent of each other; value is function of not just price,

quality and service but can also be enhanced by personalization and offering a memorable experience.

Customers generally complain that full knowledge is not provided to them. Thus the retailer should

properly disclose the features of the product and services to the customers.

The retail sector is concerned they should make a careful study before making investments because the

need of the hour and biggest challenge is the retail space and the cost of rentals.

A maximum population residing in rural area in the Villupuram district and it is also observed that the

consumers are price sensitive.

The sales person retail selling is the major role to acquisition and retaining the customers. Retailers must

take pain to make sure that sales person are educated, trained, experiences, and helping nature, has a neat

and clean outlook and is cheerful knowledgeable.

The study reveals that the customer acquisition in the electronic sector is very low. Therefore, the

electronic products sellers need more attention on customer acquisition process.

The study also reveals that the retaining the customer is in the textiles is difficulty due change life style,

fashion etc, Hence, the textile industries is to provide wide range of products options with quality and

reasonable price.



CONCLUSION

The present article concludes that, the customer acquisition and retention is the vital goal for every

business firms that emphasize on the relationships with customers. While the precise meaning and measurement of

customer retention can differ by industries and firms there appears to be a general agreement perceiving customer

retention is a tool to yield several economic benefits. Retained customers‟ purchases increasingly grow bigger

together with the referral they made during their lengthy tenure with the company. This results in a decrease in the

cost of maintaining relationships with customers. Customer retention is beyond satisfying and maintaining existing

customers. Hence, attention on this area is greatly needed in order to further improve the firm‟s performance. It is

believed that customer retention strategy will be a great management tool for retailers to survive and grow in the

very competitive retailing industry. The findings of this study in addition to the implications given are expected to

enlighten the practices of customer retention within retailing sector.

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Documents

CUSTOMER ACQUISITION AND RETENTION MANAGEMENT …International Journal of World Research, Vol: I Issue XXVI, February 2016, Print ISSN: 2347-937X ... retention within retailing sector