A study of Exploring the Need of Customer Retention Strategies in Service Sector

Abstract

This paper tries to investigate the widely applicable factors affecting the customer retention in case of service sector especially telecom service sector. It explores the present literature on customer retention and the customer loyalty & brings out various variables which affect them. Also, the importance of these important variables has been discussed with respect to service sector of India. It was found that service quality and relationship are the strongest factors of customer retention in the Indian telecom sector industry. The paper also attempts to assess the loyalty status of various service providers. The findings suggest that Indian customers do care about the loyalty programs. In this study a new customer centric approach has been presented and discussed. A short glimpse of customer life cycle has been explained with respect to the service sector. The paper holds significant implications for academicians interested in dynamics of customer retention as well as the marketers oftelecom services who are concerned with customer relationships.