Customer Retention

Topics: Customer retention, Automotive industry, Luxury vehicle Pages: 12 (2107 words) Published: November 12, 2014
Introduction
Mercedes Benz is a German automobile manufacturer founded by Daimler Motoren Gesellschaft in 1901. Mercedes not only specializes in luxury automobile, they also manufacture buses, coaches and trucks. In Germany, there is a name in the manufacturing industry known as the “German Big 3”; these 3 companies consist of Audi, BMW and Mercedes. Mercedes was always known for its quality and durability in its product. It has done well in keeping its name for over a century. There are many different classes developed to cater for the ever demanding customers. Some of the classes are C, D, E, G, K, L, R, S, T class. Also, Mercedes reputation is also build in the Formula One scene.

1. Customer retention
Customer retention is an assessment that an organization takes to measure the customer defection. It is important because retained customers tend to spend more, need lesser loyalty cost and they tend to refer someone to your business. Therefore, it is deemed as an important aspect in growing a sustainable business. The number one goal of all companies in retaining their customers is making customers feel special. A video on Youtube suggested that “When was the last time you made a referral for a business? Is it because you don’t have any referrals? Or you feel that they (the business) don’t really appreciate your business” When a business makes the customer feels special, they would become more valuable to a business because they will practice repurchase. They would also be more open to a business continuing to educate the customers. According to a research done by Harvard Business School, they suggested that “by increasing customer retention rates by 5%, it increases profit by 25% to 95%”. (HBSWK) This shows that customers feel appreciated by using the slightest effort in customer retention. A little effort can go a long way. For all of that to happen, customer retention strategy is needed. Customer retention strategy is the steps taken to keep the customer that businesses invested to inquire. For example, if Mercedes does not want their customers purchasing their competitor’s product, they should deliver a service that’s consistent with their value proposition and brand. They must do their best in providing good service or product as they are one of the luxury brands in the automobile industry.

Providing Good Services
Mercedes Benz is committed in providing an excellent service to its customers. Be it from the moment the customer walks into the shop to purchasing the product to even the after sales service. At Mercedes Benz, they constantly aim to strive for perfection in terms of designs, features, technology and many more. Mercedes takes pride in what they do – looking after customer’s cars and its owners. To ensure Mercedes is providing a good service, they created a “Mercedes-Benz Excellence Award in which is a programme to recognize and award service dealers who provide the best services to its customers. This is to reinforce long term relationship with customers. Timothy Tiah, co-founder of Netccentric and a blogger stated on his blog that he was very satisfied with the service provided by a Mercedes show room at Hap Seng Star. He recommended Kee, a salesman in Hap Seng Star because of his attitude and honest recommendation. He was also amazed with the politeness of the salesperson. Timothy Tiah said “We left that day without buying a car from Kee but he was polite and showed us all the way to the door”. Besides this, Mercedes too have an excellent after sales service. If customer were to face an issue with their car with the reason of faulty parts by Mercedes, they will provide a courtesy car for their customer. This is to allow customers to experience the wonderful service provided by them.

Knowing the customer’s needs
Mercedes Benz have always know who they should target and how should they target them. By knowing this piece of information, they are able to determine what the customers...

References: Gregory.C,15 Customer Retention Strategies. Available from: http://www.helpscout.net/blog/customer-retention-strategies-that-work/> [5 November 2014]
Frederick. F.R, Phil. S, The economics of E-Loyalty. Available from: [5 November 2014]
Facebook Mercedes-Benz Malaysia. Available from: [ 5November 2014]
BMW MALAYSIA. Available from: [5 November 2014]
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • A Study of Bank Customer Retention Essay
  • Customer Service Essay
  • Customer Retention Essay
  • Managing Customer Value Essay
  • A Study on Customer Service Analysis Essay
  • Customer Relations Week 5 Assignment Essay
  • Marketing
  • Define what is meant by marketing and why customers are so important? Essay

Become a StudyMode Member

Sign Up - It's Free