Investigating the Relationship between Customer Retention and Business Performance in XYZ Airlines

Abstract

Today, in the competitive market, the customer retention has become a challenge for every organization. Therefore, the organizations need to build the strategies in order to achieve their organizational goals and to attain the desired profitable outcome. Due to the significance of the customer retention practice and the role of xyz airlines towards the nation‘s economy, this study intends to explore possible factors that influence service-oriented xyz airlines‘ customer retention practices and their subsequent impact on the performance of the business. A quantitative method and a survey questionnaire were used to investigate the problem. Hundred respondents were sampled by using a random sampling technique. Exploratory data analysis and correlation analysis were used. The analysis of the study clearly exposed that all the six constructs used in the study namely; customer satisfaction, switching cost, price perception, customer loyalty, perceived service quality and customer service are significantly and positively associated with business performance. Despite limitations like generalizability, the findings of this study provide evidence that the management of XYZ airline are required to work closely with these strategies, especially Airline Service Quality and Airline Switching Barriers. Also, it is essential to fine-tune them to reflect the exigencies of the time. The customer centered companies should always be familiar with the needs and demands of their customers. The companies should always evaluate their performance and understand where they actually stand according to the customer‘s demands and perceptions. Now, the Airline Industry enthusiastically focuses on marketing strategies in order to increase the level of customer retention, hence the profit level of the company will increases. Therefore, as a strategy, XYZ airlines can offer different discount packages and promotions by making agreements with selected business firms, so as to retain the customers.