Customer Service And Customer Retention In Organisation Case Study: Shell Uganda Limited

ABSTRACT

This report focuses on the relationship between customer service strategy and customer

retention in organizations. The study first broadly reviews the concepts of customer

service and customer retention. Against the hypothesis that customer service is the key

driver of customer retention, the study highlights the key components of customer service

and how each of these components enhances customer retention in organizations.

A review of existing Literature and analysis of works from journals, textbooks, published

studies, internet and previous research reports reveals that indeed there is a positive

correlation between customer service and customer retention in most sales and service

organizations. However, this study furthers existing literature by introducing a third

dimension of the further linkage between customer service and customer retention, and

how this affects organizational profitability.

The research findings confirm that there is a relationship between customer service and

customer retention although customer service is not the only driver of customer retention.

The findings also confirm that customer retention can be a key driver of company

profitability given the right customer service and retention strategies. The study builds a

business case for adopting optimal customer services strategies that can lead to customer

retention and sites several examples of world class organization whose success has been

built on the hallmark of customer service. The study recommends that in an error of

technological flux, which has led to little product differentiation, organizations can only

offer differentiation through quality customer service. The study concludes that in future Customer Service will be the hallmark of successful organizations.