ENHANCING CUSTOMER RETENTION IN RETAIL INDUSTRY

Abstract

With the pandemic grabbing up places all over the world, the decline in businesses, macro and micro, is inevitable. Among these businesses is the retail sector which plays an important role for any economy. Retail sector covers all the basic necessities that a human being needs.

Retail sector is dependent on many factors that drive the sales of a company and the most vital one is the customer retention. With eruption of technology it is highly important to underscore the importance of social media and advanced technology.   The main reason for that is the number of options the customers have. Due to this the switching cost is low. From the porter’s analysis, we can clearly conclude that the bargaining power of the buyer is high for most retail commodities.

Many customers are loyal towards a brand because of the brand image, so it is highly important that a company fulfills its CSR programs in a way that can grab the attention of the customers and glue them to the brand. This brand image can also be connected to the store ambience.

This study is based on various factors that are perceived by the customers as of value and how these factors can enhance the customer retention.