Dissertation: Impact of Customer Satisfaction on Customer Retention

This dissertation investigates the impact of customer satisfaction strategies on customer retention, using Barclays as a case study. It begins with an abstract, introduction, and a detailed literature review that explores various customer satisfaction strategies such as seeking feedback, building relationships, offering personalized services, leveraging social media, providing additional benefits, instant response with live chat, addressing negative reviews, and utilizing chatbots. The research aims to determine the most effective strategies for retaining customers. The methodology includes research aims, objectives, and questions. The findings and analysis section delves into the practical application of these strategies, followed by an interpretation of the collected data. The conclusion and recommendations offer insights into improving customer retention through the implementation of customer satisfaction strategies. The report emphasizes the importance of adapting to consumer behavior and continuously improving services to enhance customer satisfaction and loyalty. The study aims to provide valuable insights for businesses seeking to improve their customer retention rates and overall competitiveness.

DISSERTATION
The impact of customer satisfaction strategies
on customer retention
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Abstract
Consumer satisfaction play important role that allow organisation to retain consumers for
longer period of time. It is essential for organisation to effectively meet expectation of
consumers while emphasizing upon certain indicators of consumer behaviour. Company is
required to effectively emphasize upon change in the behaviour of consumers on regular basis.
By tracking this organisation can implement effective consumer retention strategy through which
organisation can assure more competitiveness. Present report has been conducted on the aim of
consumer satisfaction strategy on consumer retention. For this research aims and objectives have
been framed on which literature review, finding and analysis research methodology, conclusion
and recommendation is being included.
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Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Literature Review.............................................................................................................................5
Research Methodology..................................................................................................................12
Findings and Analysis....................................................................................................................15
Analysis of collected facts....................................................................................................17
Interpretation of data............................................................................................................19
Conclusion & Recommendation....................................................................................................29
REFERENCES..............................................................................................................................32
Appendix........................................................................................................................................34
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INTRODUCTION
Consumer satisfaction is termed as a measurement that determines the extent to which
customers are happy with company’s services, products and capabilities. It is essential for an
organisation to determine the level of consumer satisfaction and make significant improvement
and changes in their services and products as to enhance overall satisfaction of customers
(Kankam Jr, 2020). With the help of this organisation can retain them for longer period of time.
Present report has been conducted on Barclays which is a leading organisation engaged in
banking sector. Organisation was founded in the year 1690 and headquartered in London, United
Kingdom. Consumer satisfaction strategies are assuming a significant part in expanding the
goodwill of the overall industry. With the help of adopting various customer satisfaction
strategies companies can effectively measure impact upon overall level of consumer satisfaction
and profitability. This organisation provides banking and financial services to customers. Present
report has been conducted on the aim to evaluate the impact of consumer satisfaction strategies
on consumer and consumer retention in order to determine the benefits of consumer satisfaction
strategies for both company and customers.
MAIN BODY
Research Aims and Objectives
Research Aim
" To evaluate the impact of customer satisfaction strategies on customer retention". A
case study of Barclays.
Research objectives
The research objectives that are widely based over the aim of the research are associated as
under:
 To determine various customer satisfaction strategies
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 To analyse need of customer retention and how it can be done through strategies.
 To recommend bank various ways for customer retention.
Research questions
 What are the various customer satisfaction strategies?
 What is the need of customer retention and how it can be done through strategies?
 What are the recommendations for bank for customer retention?
Literature Review
Literature review is defined as a narrative review in which survey of article, books, scholarly
articles as well as other sources is being done which is relevant to the particular issue on the
topic selected to provide descriptive and critical evaluation through which research outcomes can
be done in effective manner. Research review is basically a survey of various resources on a
particular topic that involves finding reliable publications such as articles and works and further
critically evaluates them. Literature review play important role in a research as it allow
investigator to conduct in-depth analysis of selected topic. It helps in critically evaluate the facts
and information through which researcher can accomplish research objective and aim in effective
manner. With the help of literature review, investigator aim towards establishing with the
understanding of current research in order to conduct a new investigation. With the help of
literature review investigating can identify possible gaps in the scholarly article and can further
research on them research is required to understand the importance of literature review for
assuring successful research outcome, as it helps in conducting in depth analysis of the selected
topic mentioned below is a literature review on the present topic has been conducted.
Various customer satisfaction strategies
Consumer Satisfaction is characterized as an estimation that decides the extent at which
customers are satisfied with company products, facilities and services. Consumer satisfaction
data, including reviews and evaluations, can assist an organization with deciding the way to
make best improvement or changes its items and administrations. Consumer satisfaction theory
(CAST) is a generally utilized as a key performance indicator that tracks the extent at which
customers are satisfied with company services and products. Furthermore, it has been underlined
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that, it is mainly defined as a psychological state of mind that is estimated by the client's
assumptions. With the help of taking use of this theory company can effectively maximise
loyalty of customers at great extent.
As per the view point of Messner, (2020), there are number of consumer satisfaction
strategies for which satisfaction level of customers can be improved in an effective manner. It
has been identified that by seeking feedback is one of the easiest and most forwarding strategy
for consumer. In addition to this, with the help of this organisation can overcome customer’s
issues and problems in an effective manner and can further undertake recommendation from
them. It has been determined that by building relationships that customers in an effective manner
by offering personalized services and additional benefits organisation can also enhance overall
satisfaction level of customers. Customers play most important role for any organisation
irrespective of its size and scope (GETENEH, 2020). Thus with the help of different type of
consumer satisfaction strategy organisation can increase consumer lifetime value and can
improve branding. With the help of consumer satisfaction company can build trust and loyalty
among customers. It is essential for the organisation to understand values of customers while
delivering services to many omni channels. It is also essential for company to provide instant
response with live chat to customer’s software. With the help of this company can maintain
transparency with their customers.
Offer Personalized Services:
Organisation can enhance its overall revenue rate with the help of satisfying customers at great
extent. In order to be a successful business in any industry it is essential for organisation to
determine the manner to treat customers in effective manner. As a customer if a person is treated
with personalized services can be satisfied in effective manner, along with this it has been
determined that if organisation offer personalized services to customers then it will help them to
enhance consumer loyalty as well as satisfaction. Offering personalized services especially in
banking industry is one of the most effective manner through which consumers can be satisfied
in effective manner. Furthermore, it also help organisation to lend a voice to their brands. with
the help of offering personalized services to customers such as customised message and
personalize assistance and offering notification as per consumer habits and needs will
successfully aid business organisation to enhance consumer satisfaction (Capponi, Corrocher,
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and Zirulia, 2021). Thus according to the analysis has been identified that with the help of offer
personalized experience to customers organisation can significantly engage their visitors in
effective manner.
Turn to Social Media:
In this modern competitive environment that is aggressive competition prevail in
basically all the industrial sector. In this social media is acting as one of the most powerful tool
through which an organisation can attract attention of many internet users. Social media is
defined as an effective channel that allow organisation to get consumer reviews as well as
recommendations. With the help of social media consumers can share their experience with
company. This will help organisation to fulfil actual needs and demands of customers.
Furthermore, with the help of social media industries like banking can keep regular track to make
sure that consumers are satisfied with the services provided by the business. Social media can be
effectively utilised to monitor a consumer reaction towards the services and can further
undertake feedback from them. With the help of this organisation can also engage their
customers with the help of activities like quiz and contests. It will help in building trust and
engagement of customers with organisation services and facilities
Provide Additional Benefits:
Additional benefits play a major role in enhancing consumer satisfaction level at great
extent. With the help of offering additional benefit and special offer to customer’s organisation
can surprise them with the unexpected gesture. It not only helps in building strong relationship
but also an organisation to maximise consumer loyalty and trust. Furthermore, it has been
underlined that with the help of offering additional benefits company can build a positive image
in marketplace that significantly helps in enhancing satisfaction level of customers immensely.
Provide instant response with live chat:
Consumer satisfaction play most important role for the entire organisation. In this it is essential
for company to address consumer questions concerns as well as issue. With the help of offering
regular support assistance to customer’s organisation can enhance consumer satisfaction level. It
has been identified that in banking industry response time play important role that helps in
increasing consumer satisfaction level (Vo and Xu, 2021). In order to offer great consumer
service it is essential for company to figure out the queries and provide assistance to customers.
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Organisation is also required to provide assistance with the help of expert solution and reduce the
wait time. With the help of life chat organisation can initiate a proactive conversation that helps
in offering support for assistance to customers.
Act on negative reviews & customer complaints:
It is one of the most important strategies that help in enhancing consumer satisfaction level. It is
essential for an organisation to effectively bridge the gap between traditional word- of- mouth
and vital form of feedback that effectively influence opinion of consumers. Negative review can
affect mindset of customers and can impact on consumer sales directly and indirectly. It is
essential for organisation to analyse review of customers in order to satisfy them in effective
manner (Das and Gondkar, 2021). Organisation is required to provide assistance to the feedback
provided by customers. Thus according to the above mentioned analysis, it is essential
organisation to resolve consumer complaints in time effective manner and have regular check on
the reviews and comments of customers. By fixing complaints and reviews organisation can
successfully maximize satisfaction level of customers and can maximise their satisfaction level.
Engage customers 24×7 with chatbots:
It is essential for an organisation to engage with customers 24/7. It helps in incredibly
increasing satisfaction rate of customers and also aid organisation to enhance the profitability
and sales. With the help of chart boots organisation can actively engage with customers and can
answer their queries and question. Organisation those who are especially engage in banking
industry are required to of a 24/7 support to customers, as it helps in increasing consumer
satisfaction level with the help of this organisation can build trust and can further maximize
consumer satisfaction.
Thus according to the above mentioned analysis it has been identified that with the help
of emphasising upon the above mentioned strategies of consumer satisfaction, business
organisation can effectively treat their customers and can build positive image trust between
company and customers. It helps increasing long term sustainability and higher profitability.
Customer retention
As per the view point of Shamsudin, (2020), customers are king of market thus it is
essential for organisation to retain their loyal customers for a longer period of time in order to
enhance the effectiveness and assure long-term sustainability in market. There are a number of
consumer retention strategy such as improve customer service, start consumer loyalty program,
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send engaging emails to customers, offer discount or personalized services in order to retain
customers for a longer period of time (Al-Gharaibah, 2020). It is essential for company to build
trust relationship by improving KPIs and take consumer feedback survey. Companies also
required delivering their services according to the promised measures. Customer retention is
defined as a process in which organisation undertaker various measures to retain customers for
longer period of time. In this with the help of implementing various consumer retention strategy
company can retain their loyal customers for longer period of time.
Offer excellent consumer service:
It is essential for an organisation to offer customers with the excellent services as compared to
the other rivals in industry in order to retain them with company for longer period of time. With
the help of offering excellent consumer service organisation can effectively provide satisfaction
to even frustrated customers. Consumers if get highly effective services can retain with
organisation. It is essential for company to offer cohesive and consistent experience to customers
and provide them care and attention with the help of life messaging services, email and phone. In
addition to this organisation with the help of offering multiple contacts channels can offer
services to customers in effective manner (Yu, Seo and Hyun, 2021). In addition to this with the
help of assessing customers as per their needs and wants will also help in retaining them for
longer time period.
Consumer survey:
Consumer survey acts as one of the most effective manner that allow organisation to have better
insight of the needs and wants of customers. With the help of consumer survey online can
quickly identify their behavioural change as well as demands in organisation. With the help of
taking quick online survey with the help of mixture of multiple choice question can make
customers to freely express their opinion (Sisson, 2021). This will further lead organisation to
develop a strategy to satisfy and serve consumer needs accordingly.
Keep consumer informed:
Organisation must assure that there is transparent relationship maintain with customers. In this it
is essential for company to keep their consumers informed and up-to-date with the new
development such as exciting milestone, product line, new service organisation that can be done
with the help of monthly newsletter or email (Refan and Suciratin, 2021). With the help of
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offering consumers with the information will lead organisation to keep an up-to-date and engage
with company. It significantly help in retaining with organisation for more period of time.
Develop frequent communication calendar
Organisation must assure that they maintain frequent communication with customers with the
help of multiple communication channels (Al-Hazmi, 2021). It is essential for company to
develop a communication calendar in order to keep touch with their consumers at regular interval
of time. With the help of this company can not only effectively promote their new services and
facilities but can also retain customers for long time period. Communication calendar helps
organisations to engage with their customers and help them to eliminate any form of doubt that
might prevail in their mind. It significantly helps in improving trust level and also organisation to
retain customers in effective manner (Bariha, 2021). There is different type of communication
calendar tool such as phone calls, letter or events, cards, special offers and message through
which company can communicate with their customers. This will help company to make that
customers feel valued and important. It is essential for an organisation to do not neglect
consumer interest. Thus with the help of communication calendar tool consumer needs demands
and interest can be evaluated in effective manner.
Thus according to the above mentioned analysis it has been identified that consumer
retention play most important role for organisation in terms of assuring higher profitability,
productivity, growth and long-term sustainability in an industry. With the help of retaining
customers, company can not only build their goodwill in market but can also develop a strong
consumer base. It helps in creating positive image of organisation in respective industrial sector
through which they can gain the capability to attract new customers in more effective manner. It
is essential for an organisation to implement wide range of consumer retention strategies in order
to provide valuable treatment to each and every consumer (Kiki and Ogutu, 2021). This will
significantly aid organisation to enhance consumer satisfaction level that further allow company
to retain them for longer time period.
Recommendations for bank for customer retention
According to the view point of MATHANGANI, (2020), it is recommended to bank to resolve
issues of customers with the help of live chat support system. It is one of the best measure
through which bank can not only enhance overall level of consumer satisfaction but can fulfil
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their expectations in time effective manner (Gutnik, 2021). Bank is also required to provide
rewards loyalty to customer and keep in touch with customers with different type of measures
such as emails, messages and more. With the help of this bank can retain customers for longer
period of time.
Increase personalization through newsletter campaigns and customer communications:
It is recommended to bank to increase personalization with the help of newsletter
consumer communication and campaigns. It helps in increasing customer’s base and allow bank
to increase consumer attention. With the help of starting a newsletter campaign banking
organisation can effectively helps in fostering trust based relationship with consumers through
which they can significantly enhance brand preference along with loyalty. It is essential for
banking to set up automatic messages and consumer communication in order to greet customers
on birthdays, as it helps in delivering personalization services. Along with is it also helps in
driving level of engagement with consumers that further help in developing stronger brand
promise.
Capture valuable feedback through customer satisfaction surveys:
Feedback play most important role in consumer satisfaction, in this with the help of consumer
satisfaction survey banking organisation can effectively collect valuable information. It is
recommended to bank to request feedback through survey in which they can determine banking
experience of customers and can further offer them services accurately. It also helps in
identifying, managing and resolving satisfaction level of customers (Nabasumba, 2021). With the
help of this banking organisation can ask the right questions that helps in understanding
customers and it organisation to deliver improved consumer satisfaction.
Demonstrate thought leadership through financial wellness programs:
It is recommended to bank to implement financial wellness as well as counselling
program in order to promote financial well being of consumers in banking organisation. By
providing financial wellness as well as counselling services can help in retaining consumers for a
longer period of time.
Retain customers by managing and responding to reviews:
It is essential for banking organisation to retain customers while managing and
responding to the consumer reviews. In this with the help of online review organisation can
review consumers experience level. With the help of this organisation can effectively develop
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positive brand reputation and can retain customers for long time period. It is essential for bank to
manage and respond to online review with the help of banking review sites. With the help of this
organisation can engage customers who left unsolicited feedback. Along with this bank is also
recommended to respond to negative reviews as well as positive feedback in order to satisfied
customers in effective manner.
Impact of customer satisfaction strategies on customer retention
Thus, according to the above mentioned analysis it has been identified that it is essential
for our organisation to nurture consumer loyalty by building a service culture. Banking
organisation is required to build trust by offering effective services to customers and with the
help of staying connected after post sales (Rahmatulloh and Melinda, 2021). Along with this,
with the help of technology bank can offer digital banking support to customers and
acknowledge their needs and demands. It is essential for organisation in banking industry to
focus on delivering superior consumer services as it helps in retaining customers for longer
period of time. This further helps bank to assure long term sustainability and competitiveness in
industry. Furthermore, it has been identified that, customer retention basically happens when
client buy an item or on the other hand benefits over and over. This process is underlined as
consumer retention as, the measure by which consumer duly interpret cost and value to a service
or product. In addition to this, clients who will address greater expenses for an item or
administration will in general be brand cognizant. (Nabasumba, 2021), characterize consumer
loyalty as dependence on or certainty in the individual or interaction administrations are
performances. This has been stated that consumer retention is an essential process and allow
organisation to ensure more growth. Customer retention has been demonstrated to be an essential
objective in firms that training relationship promoting. While the exact significance and
estimation of client maintenance can fluctuate between businesses and firms there seems.
Customer retention is potentially one of the most powerful weapons that companies can employ
in their fight to gain a strategic advantage and survive in today’s ever- increasing competitive
environment.
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