There is little merit in growing the customer base aimlessly. The goal must be to retain existing customers and recruit new customers that have future profi t potential or are important for other strategic purposes. Not all customers are of equal importance. Some customers may not be worth recruiting or retaining at all, for example those who have a high cost-to-serve, are debtors, late payers or promiscuous in the sense that they switch requently between suppliers. Other things being equal, a larger customer base does deliver better business performance. Similarly, as customer retention rates rise (or defection rates fall), so does the average tenure of a customer, as shown in Figure Tenure is the term used to describe the length of time a customer remains a customer. The impacts of small improvements in customer retention are hugely magnifi ed at higher levels of retention. For example, improving the customer retention rate from 75 to 80 per cent grows a...
Performance marketing is an activity and a method of capturing the activities of society, law, safety, and the environment and ethics. Performance marketing negotiation has been observed to be consistent with the concept of social accountability. There are some contemporary civilization practices such as to cause negotiations and related markets and other practices of social responsibility (Kotler and Keller, 2003). According to Sheth and Sisodia (2006), performance marketing contracted with the broader concerns and their legal, ethical, social, and environmental implications, as well as understanding performance marketing and the returns from marketing activities and programs. In addition, Kotler and Keller (2007) stated that performance marketing is based on meeting consumer needs and wants, but tries to interact with the community that is more interested in the organization. according to Sisodia, Wolfe, and Jag (2007), performance marketing involved understanding t...