Customer retention in service firms: three case studies of
companies in the transport-logistic industry

Abstract: Customer retention has increasingly become the focus of many companies'
strategy. Through three case studies of Swedish companies in the transport-
logistic industry this thesis investigates the extend companies within the
service sector can enhance customer retention through customer relationship
management. CRM is a business approach that focuses on ways companies build
customer relationships with their customers. Companies may choose to apply
different parts of CRM to their business: through technology and other
means
of communication with customers, various training programs and other
resources devoted towards the employees of the company. Evaluating past and
present customer behavior makes it possible for companies to adopt the most
effective business strategy. Findings indicate that to be able to attract
and keep customers, i.e., increase customer retention rate, companies have
to adopt a proactive approach – devote time and resources to stay in touch
with customers. In this way companies not only can increase their
competitive advantage but install a sense of seeking benefits not just for
the company but for their customers. A major conclusion of the study is
that
companies must recognize the impact of local culture and market conditions
on companies’ business performance. Companies have to realize that they not
only have to do the right things but have to do the things right: by
listening to customers and adopting a strategy based on common grounds with
customers a company stands better chance to outrank competitors and be more
efficient in building strong relationships with their customers: hence
increase customer retention.