Retention of customer

Logistics plays an important role in retaining an existing customer. In the centre of the picture is the main product that is manufactured in the factory. The outer “halo” refers to all the added value provided by customer service and logistics. It is clear that added value is not only provided by customer service and logistics activities; in many cases, advertising, image, branding and packaging can increase the perceived value of a product to the customer.

Ex. 12‑23 Customer’s retention by logistics

Keywords: core product, services

Ex. 12‑24 Ratio between old and new clients

Keywords: new clients, retained clients

The primary goal of any customer service strategy in global business should be to strengthen customer retention. While it is clear that customer service also plays an important role in acquiring new customers, retaining existing ones should be given special attention.

Marketing and logistics are tasked with creating long-term “relationships” with customers. This can be achieved by creating such a level of customer satisfaction that they do not feel the need to even consider alternative offers or suppliers. The situation is complicated by the fact that many markets are characterised by low supplier loyalty. In these markets, customers will buy one brand one time and are just as likely to buy another brand the next time.

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