The importance of customer retention and customer attrition in e-commerce: the case of Dermoshop Oy.
Mai, Linh (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202105077623
https://urn.fi/URN:NBN:fi:amk-202105077623
Tiivistelmä
The research problem regards companies' challenges in maintaining long-term relationships with potential customers in the era of increased digitalization. The study objectives are to determine the importance of customer retention and customer churn, providing an understanding of customer purchase behavior to assist the firm in implementing sufficient strategies and increasing profitability.
The literature review presents the concept of customer relationship management, customer retention, customer attrition with the calculation, while determinants affecting retention and attrition terms are introduced and explained. The study methodology is the Quantitative method, and the data collection method is to gather and analyze quantitative data extracted from the BI system of Dermoshop Oy.
The study outcome revealed that the higher the customer retention rate, the greater the company's value, while the minor increase in customer attrition can negatively impact the firm's revenue. By perceiving the business insights behind outcome figures, e-commerce enterprises can get more advantages. Companies can identify the exclusive milestones when existing customers and new customers are acquired the most, with minimal customer loss, to gain firm profitability and enhance the business performance.
The literature review presents the concept of customer relationship management, customer retention, customer attrition with the calculation, while determinants affecting retention and attrition terms are introduced and explained. The study methodology is the Quantitative method, and the data collection method is to gather and analyze quantitative data extracted from the BI system of Dermoshop Oy.
The study outcome revealed that the higher the customer retention rate, the greater the company's value, while the minor increase in customer attrition can negatively impact the firm's revenue. By perceiving the business insights behind outcome figures, e-commerce enterprises can get more advantages. Companies can identify the exclusive milestones when existing customers and new customers are acquired the most, with minimal customer loss, to gain firm profitability and enhance the business performance.