Maintaining Customer Loyalty : Case company: Industrail Securities Ltd (China)

Abstract

The purpose of this thesis is to investigate how customer relationship management can be applied in maintaining customer loyalty. The study will assist the case company to find the way to develop a long-term relationship with existing customers. The better relationship with customers, the higher customer loyalty will be obtained.

The theoretical background of the thesis begins with general view of customer relationship management, which embodies the concept of managing customer relationship, customers’ perceived value, customer satisfaction, customer relationship levels as well as customer equity. Customer relationship marketing is discussed, which includes the difference between customer relationship marketing and transactional marketing. In addition, detailed stages of customer relationship building are ascertained. Finally, the theory provides various solutions on building the appropriate relationship with right customers.

The empirical research was accomplished by a quantitative approach which involves sending questionnaires to target customers. The purpose of this research is to give objective suggestions how Industrial Securities satisfies customers and to retain existing customers’ loyalty in the intense securities industry in China.

The findings indicated that although the majority of customers is satisfied with the overall service supplied by Industrial Securities, only a small number of customers would recommend the case company to others, this is because that the company lacks distinct competitive advantages. The result of the study implies that there is growing demand for the development of customer relationship management. Suggestions for improvement are recommended on the basis of the theoretical studies and the findings. It is very important to develop a long-term relationship with existing customers and to maintain their loyalty.