Research on Customer Retention's Impact on Business Performance

This report presents a comprehensive analysis of customer retention strategies and their impact on business performance, specifically focusing on Al Tayer Beauty. The research utilizes quantitative data collected through surveys administered to both employees and consumers. The findings reveal that customer retention is a crucial factor for business growth, market share, revenue, and profitability. Key insights include the importance of customer service, loyalty programs, and online presence. The analysis also explores the determinants of consumer shopping behavior, such as product availability, price, and quality, as well as the impact of offers and staff recommendations. The report emphasizes the need for Al Tayer Beauty to focus on enhancing customer experience, maintaining product quality, and offering competitive pricing to ensure long-term sustainability and success in the competitive retail industry. The study highlights the interconnectedness of customer experience, loyalty, market share, and profitability, underscoring the need for continuous innovation and adaptation to meet evolving consumer needs.

Running head: RESEARCH METHODOLOGY
Research methodology
Name of the student
Name of the university
Author note

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Chapter 4
4.0 Findings and Analysis
This chapter of the study will evaluate the raw data collected to form meaningful results.
The report will aim to establish the relationship between customer retention and business
performance. In this study, quantitative analysis is the basis of developing relevant findings. The
study has used Ms Excel as the statistical tool to identify the relationship between the variables.
There are two sets of quantitative data, one is addressed to the employees in Al Tayer Beauty in
United Arab Emirates and the second set of questions is addressed to the consumers of the firm.
4.1 Quantitative questions to the employees
1. Customer retention is the main pillar of business firms' growth and development
Answer Choices Responses
Yes 95.74% 45
No 4.26% 2
Answered 47
Table 1:

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Graph 1:
Findings
This question addresses the question which highlights whether the growth and
development of the organization is dependent on customer retention. The result of the research
shows that 95.74% of the respondents have agreed to the research question and the remaining
have not agreed to the research question. Therefore, it is quite clear that the respondents strongly
feel that Al Tayer Beauty can grow by retaining their existing consumers in the market.
Therefore, the organization should focus on these basic factors to increase their level of growth.
2. Does your organization have a customer service department that handles customers
concern?
Answer Choices Responses
Yes 80.85% 38
No 19.15% 9
Answered 47
Table 2:

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Graph 2:
Findings
This question highlights the fact which will identify whether the organization has a
customer department for handling the organizational grievances or not. The result of the research
shows that 80.85% of the respondents have agreed to the research question and the remaining
have not agreed to the research question. This means that Al Tayer Beauty has a consumer
grievance department to solve customers and other issues faced by them. The experiences of the
consumers are dependent on this department and therefore, the organization will have to focus on
improving the efficiency of this department to increase their consumer base.
3. A sustainable business begins and ends with increasing customer retention trend
Answer Choices Responses
Strongly agree 55.32% 26
Agree 36.17% 17
Neither agree nor disagree 8.51% 4
Disagree 0.00% 0
Strongly disagree 0.00% 0
Answered 47
Table 3:

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Graph 3:
Findings
This question underlines the fact that whether business sustainability is starts and ends
with the trends in consumer retention. The result of the research shows that 55.32% of the
respondents have strongly agreed to the research question and they have been supported by
36.17% of the respondents. On the contrary, none of the respondents opposed this statement and
8.51% of the respondents are neutral to the research question. This indicates that customer
retention is one of the key criteria for maintaining the organizational sustainability. Therefore, it
is essential for the organization to come up with innovative ideas which will increase the loyalty
of the consumers. Therefore, the organization will have to keep on making improvements in their
loyalty programs for securing their long term sustainability in the organization.
4. Customer retention curve determines companies' market share, revenue and profitability
growth
Answer Choices Responses
Strongly agree 36.17% 17

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Agree 57.45% 27
Neither agree nor disagree 6.38% 3
Disagree 0.00% 0
Strongly disagree 0.00% 0
Answered 47
Table 4:
Graph 4:
Findings
This question depicts the fact that whether customer retention curves determines
companies' market share, revenue and profitability growth. The result of the research shows that
36.17% of the respondents have strongly agreed to the research question and they have been
supported by 57.45% of the respondents. On the contrary, none of the respondents opposed this
statement and 6.38 % of the respondents are neutral to the research question. Therefore, the
retention capability of the organization will determine their growth in terms of their market
share, profitability and revenue. Therefore, development excellent experience for te consumers
is one of the crucial factor for the success of Al Tayer Beauty. The retail industry is highly
competitive with immense with new technological advancements. The organization will have to

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focus on the customer experience map which will take into consideration the overall experience
of the consumers starting from before making the purchase till post purchase experience.
5. How do you think customer retention impact organizations profitability and market share
growth?
Answer Choices Responses
Positive or negative Word of mouth 68.09% 32
Pushing companies to invest more 14.89% 7
Uncertainty of customer marketing trends 12.77% 6
Lack of integrity in the company products or orientations 2.13% 1
The impact of external factors, which can cause a boycott of
companies (politic as an example )
2.13% 1
Answered 47
Table 5:
Graph 5:
Findings

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This question aims to identify the impact of customer retention on the organizational
profitability and market share growth. The result of the findings show that 68.09% of the
respondents feel that negative and positive word of mouth will have an impact on the market
share and profitability of the organization. The investment will also have a definite impact on the
market share and profitability as observed from the response. However, according to the
respondents the impact of investment on customer retention is 14.89% and the impact of
uncertain city in the consumer market trends is 12.77%. On the other hand, the other factors such
as product integrity and external factors have minor impacts on market growth and profitability
of the organization. Therefore, consumer experience will directly affect the first three factors
which indicate that all these factors are linked together. Customer experience will affect the
loyalty of the consumers which in turn will affect the market share and profitability of the
organizations.
6. Loyal customers are costing companies less investments and more revenues
Answer Choices Responses
Strongly agree 42.55% 20
Agree 46.81% 22
Neither agree nor disagree 2.13% 1
Disagree 8.51% 4
Strongly disagree 0.00% 0
Answered 47
Table 6:

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Graph 6:
Findings
This question aims to identify whether the loyal consumers are costing less investments
and more revenues. The result of the findings shows that 42.55% of the respondents opinionated
that loyal consumers cost less investments and higher revenue generation. Similarly, 46.81%
have agreed to the first set of respondents. On the contrary, only 8.51% of the respondents have
disagreed to the research question and 2.13% are indifferent to the question. This indicates that
the organization has to spend less time and capital on the existing loyal consumers and they will
generate more revenue generation as cost of marketing for the loyal consumers is minimal.
Therefore, the organization will have to focus on acquiring new consumers as well as focus on
retaining the existing consumers by providing them with quality product and services.
7. Customers orientation might change organizations believes, Strategies and visions
Answer Choices Responses
True 93.62% 44
False 6.38% 3
Answered 47

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Table 7:
Graph 7:
Findings
This question will highlight whether the customers orientation changes organizations
believes, strategies and visions. The result of the findings shows that 93.62% of the respondents
have to the research question while the remaining has not. The consumers’ needs and buying
behaviours are changing rapidly so the companies have to constantly adapt to the changing need
in the market. Therefore, there are plenty of organizations that might change or modify their
existing beliefs, strategies and visions. Moreover, Al Tayer Beauty may have to change their
strategies and visions in order to compete with the other rival companies in the market.
8. Does online business affect customer’s loyalty?
Answer Choices Responses
Yes 70.21% 33

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No 29.79% 14
Answered 47
Table 8:
Graph 8:
Findings
The question will depict the impact of online business on the loyalty of the consumers.
The findings of the study shows that majority of the respondents have agreed with the research
question. The launching of the web 2.0 has improved the connectivity on the online platform and
ecommerce is one of the fastest growing markets. Therefore, use of online platform in the retail
industry is one of the key ways of providing the consumers with excellent consumers’
experience. Therefore, it is essential for Al Tayer Beauty have to focus on providing the
consumers with best possible experience at every touch point. Online platform is the most crucial
way of retaining the existing consumers and gaining new consumers.
9. Does Limited customers' retention reflect in market share and profitability growth?

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Answer Choices Responses
Strongly agree 25.53% 12
Agree 59.57% 28
Neither agree nor disagree 10.64% 5
Disagree 4.26% 2
Strongly disagree 0.00% 0
Answered 47
Table 9:
Graph 9:
Findings
This question aims to identify whether “Limited customers” retention reflect in market
share and profitability growth. The result of the findings shows that 25.53% of the respondents
opinionated that “Limited customers” retention reflect in market share and profitability growth.
Similarly, 59.57% have agreed to the first set of respondents. On the contrary, only 4.26 % of the
respondents have disagreed to the research question and 10.64% are indifferent to the question.
Therefore, the majority of the respondents show that the growth, profitability and market share
are reflected by the limited consumers in the market. Al Tayer Beauty customer data will reflect