Abstract
This paper reviewed both theoretical and empirical literature on why customers defect in businesses, and roles played by Freight Transport firms to adopt customer retention management strategies to achieve their corporate goals. This paper seeks to explore variables, which may be considered in any Customer Retention Management Strategy and Customer Retention by drawing together strands from various literature on: Strategies and analytical approaches for managing customer defections; Customer defection groups, reasons for their defections, and the role of Life Time Value of Customer (LTVC); Models that can be adopted to manage customer defections and to promote retention; and Factors that constitute actual switching barriers. It is found that freight transport businesses like other services can and should put in place proven marketing strategies to monitor and lessen customer defections. Specifically, freight transport firms in Ghana need to modify their business philosophies by focusing on those customers who leave instead of spending huge costs to attract prospects purposely to replace existing ones.
Highlights
Over the years, customer services have been considered important factor in customer retention management strategies. Potter-Brotman (1994), believes that the role service in every economy plays is more critical and crucial than ever, - a trend which will continue
Existing literature on customer defection, and retention management strategies lack specificity a detailed explanation needs to be done into it. It is in this regard that the general objective of the present paper is to offer a review to contribute to the topic: an examination on customer retention management strategies from the perspective of freight transport businesses in Ghana
To determine customer defection groups, and the reasons for their defections, and the significant role played by Life time value of the customer (LTVC) theory to freight transport businesses in Ghana. (3). to describe in detail, models which can be adopted to manage customer defections in the freight transport industry in Ghana. (4). to explore factors that constitute switching barriers that can be adopted by the players in the freight transport industry in Ghana to promote customer retention
Summary
Customer services have been considered important factor in customer retention management strategies. Potter-Brotman (1994), believes that the role service in every economy plays is more critical and crucial than ever, - a trend which will continue. It can be maintained further that with the introduction of third party logistics (abbreviated 3PL, or TPL refers to a provider of a firm’s outsourced logistics services) providers and even fourth party logistics (abbreviated as 4PLs – refers to integration, assemblage and management of all resources, capabilities and technology of a firm’s Supply Chains and its range of providers), majority of carrier service firms provide more than just physical transport links. Such carrier service firms provide functions which include value addition services which range from inventory control and warehouse management (Naim, Potter, Mason, and Bateman, 2006). While 3PL application refers to any service contract that involves storing or shipping logistics, a 4PL provider is regarded as a supply chain integrator
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