CHAPTER ONE

INTRODUCTION
1.1 Background to the study
Most firms today do feel pressure from their competitors around them, so they
will have to be alert to embrace any change that they may face in the future. The
relationship that these firms have with their customers has to be useful in overcoming
the problems they encounter with their competitors .To succeed in the mist of such
intense competition, business should embrace relationship marketing. In the business
world today, top management must recognize that the customer is the core of the
business and the success of a company greatly depends on its customers. Companies
therefore, should rely on the effective management of relationship with their
customers. So, an important objective for company should be to make the customers
happy since they are the ones who ensure the life of the business. Moreover, In the
past, many firms did not know that customer retention was an important factor and
did not rely pay attention to their customers with the pretext that many of these
customers did not re-buy since the main interest of the organization is to make profit.
Organizations have to posses the ability to be

able to retain customers gain a long

term advantage over its competitors. The major aspect of any organization is to make
their customers happy, this will help to build a strong relationship with customers and
it can be done through the gathering of customer information which is considered as
one of the most important strategy in building relationship with customers. The
customer retention management seeks to carry out systematic research and optimize
business processes, retain valuable customers yo improve efficiency and profitability
of enterprises. Customer retention strategy is to accommodate the business interest
1

and the interests of customers and comprehensive solutions. It was adapted to update
the concept of marketing management; organizations need to attract and maintain
stability of the enterprise segment of customers effectively and to firmly grasp the
most valuable customers to obtain maximum benefits. The management of customer
retention helps firms to form a unified and comprehensive customer contact channels,
customer service capabilities, and thus become the elements of customer relationship
management. The total customer satisfaction will lead to customer loyalty, leading to
an improvement in customer retention. Regardless of satisfied customers, loyal
customers and business customers will be retained for some reasons. Most companies
are now recognizing that the improvement of product quality and the provision of
quality customer service is the key to competitive success, but only a few companies
regularly use a variety of methods to measure the degree to retain business customers.
Promotion is the most effective means to retain customers. Here, many companies
tend to lower prices to attract customers and record more sales, but for many
customers, they pay more attention to the quality of the product or services and the
good image of the organization. Hence, there should be interaction between the
organization and customers though some companies do not realize this. Customer
retention can be very, very profitable. The problem is that most people simply do not
understand how to design it correctly, and do not understand the need for tracking,
analysis, and program refreshment to keep the profitability ball rolling.
However, it is argued that not all the customers are equally
organization

so they

need

to focus

on

strategies

profitable to the
that may help to

reinforce customers retention. This could be done through customer segmentation

and differentiation which goes with selecting the right customer for the right
programs to help build long lasting relationship.
2

Finally, customer retention could be the only a failure because people do not
know enough about their customers before they implement , and end up putting
too much cost in the process. If you are thinking of going to customer rout,
the best thing you could possibly do for yourself is

put in a customer

retention program first. However, organizations should not only concentrate on

the products or services they have to sell and generate a maximum profit but
to pay more attention to customers needs that will enable to attract and retain
customers

who will continue to buy their service or product instead of

wasting resources and time to fight against competitors. This study will
examine the role of customer retention can play to enhance the growth of an
organization.
1.2 Problem Statement
Over the years, marketing activities have evolved from a meager beginning
into a multibillion-dollar endeavours. In the past, when many people worked
on farms, small artisan and business owners provided customer service to their
neighbours. Many small towns and villages had their own small general stores,
barbershop and similar service oriented establishment owned and operated by
people living in the town. For people living in more rural areas, medicine and
other goods made their way from one location to another to serve their
customer and distribute various products. During that era, customer service
differed from what it is today by the fact that the owners and the Chief
Executive Officers (CEO) were also

motivated frontline employees working

face to face with their customers.

When industry, manufacturing and larger cities started to grow, the service
industry really started to gain grounds. In the late 1800s, as the mail service
matured, companies introduced the mail order catalogue to address the needs
of customers.
Today, businesses have changed dramatically as the economy has shifted from
a dependence on manufacturing to a focus on providing timely, quality and
value n of products and services. This is why some profit seeking organizations
pursues different strategies such as promotion, aids, grant etc in retaining their
customers.
Despite the fact that most organizations try so hard to retain their customers,
we still observe the companies losing their customers on a daily basis so then,
what can the company do in order to retain its customers.
1.2.1 Research Questions
What is the effect of customer satisfaction in the sales volume
What is the impact of customer retention on the level of profitability
Why are most organizations always looking for new customers but could
not maintain the existing ones
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between
customer retention and organizational growth.

In order to achieve the main objectives, study pursues the following specific
objectives;
4

To investigate the effects of customer retention on the sales volume.

To examine the impact of customer retention on the level of profitability.
To evaluate the role of customer retention on the net asset of the
organization.

1.4 Research Hypothesis

Ho: There is no significant method used to retain customers.
Ha: There is a significant method used to retain customers.
1.5 Scope of the Study/ Delimitations
The research is limited to the study of the impact of customer retention on
organizational growth.
1.6 Organization of Work
The study is divided into five main chapters; the first chapter is the general
introduction. Chapter two is the literature review. The third chapter dwells
on the methodology employ

for this study. Chapter four is based on data

presentation and analysis (interpretation) while the final chapter presents the
summary, conclusion and recommendations to the organization in case

CHAPTER TWO
LITERATURE REVIEW
2.1 Conceptual Framework
5

2.1.1 Definition of Some Key Terms

2.1.1.1 Customer
The definition of the word customer provides reasons why business need to
develop the main customers rather than simply attract buyers. The word
customer is defined by the Oxford English dictionary as meaning

to render

a thing customary or usual and to practice inability. A customer is a person

who becomes, accustomed to buying from you . This custom is established
through purchase and interaction on frequent occasions over a period of time,
without repeat purchases, this person is not your cust5omer over time.
2.1.1.2 Customer Retention
According to Macmillian English dictionary the international students edition,
customer retention is the ability of the firm to keep workers or customers
from leaving the organization.
According to Wikipedia, the free encyclopedia, customer retention can be view
as the activity that is, selling organization undertakes in order to reduce
customer defection. Successful customer starts with a customer and continues
throughout the lifetime of a relationship. Customer retention statistics are
typically expressed as a percentage

of long term clients and they are

important to a business since retained customers tend to spend more, cost less
and make valuable references to new potential customers.
2.1.1.3 Customer Satisfaction
Customer satisfaction is a situation where the customer expectation is met
through good quality product , on timely delivery.

2.1.1.4 Customer Data Base

Customer data base is accumulated information acquired by a company about a
customer. That is the customer names, telephone numbers and customer past
purchases, demographics, and other useful information about the customer.
2.1.1.5 Customer Delight
This is a situation where the customers

expectation is not just

met but

exceeded. Customer delight can be seen as adding extra value. Customer

delight is a highway to customer retention.
2.1.1.6 Organizational Growth
Nunvi (2006) defines organizational growth to mean, an increase in a business
net sale, increase in capital employed, and increase in its size.
Business growth is the total increase of net asset employed in the business.
Profit earned by an enterprise can be a factor to measure growth. Internally,
generated sources of finance, part of its undistributed profit can increase the
growth of an enterprise.
2.1.1.7 Customer Loyalty
This is the willingness of a customer to stick to a particular brand of a
companys product irrespective of the fact that there exist many other
substitutes from the competitors. This is because the customer derives high
degree of satisfaction.
2.1.1.8 Service

Service is the manner in which you and other employees treat your customers
and each other as you deliver your companys product or other deliverables.
2.1.1.9 Switching Cost
Switching cost at this point is the cost that the consumer incurs by changing
one service provider to another (Lee, Lee and Feeick, 2001), including the
cost that can be measured in monetary terms, the psychological aspect of
facing a new firm, and the time efforts

involved in

using a service or

product [Kim, Kliger, and vale, 2003].

2.1.2

Other Conceptual Issues

Customer retention has

a direct impact on profitability, research by John

Fleming and Jim Apland indicate that engaged customer generates 1.7 times
more revenue than normal customer while having engaged employer and
engaged customer retains a revenue gain of 304 times the normal. A firms
ability to attract and retain customers is not only related to its products or
services but strongly related to the way its services but strongly related to the
way its services are existing and the repetition its creates within and across
the market place. The simplest view that any organization could take of
customer retention is that, the way to keep customer retention is to keep them
satisfied. Some organizations think that this means Zero defects, others are
really looking at ways in which retention is not just a concept but a reality.
Also, Payne et al

[1998] developed a number of techniques for measuring

customers satisfaction and essentially linking directly to profitability. Payne et

al (1998) saddest that a retention rate of 80% means that on average, customer

remains loyal for five years (5) whereas a rate of 90% pushes the average
loyalty up to ten (10) years. This shows that as the average life of a customer
increases, so does the profitability to the firm.
Furthermore, Payne suggests that longlasting established customers are more
profitable for six reasons;

Long-established customers tend to buy more.

Satisfied customers may sometimes pay premium price.
Satisfied customers often refer new customers to the supplier at no extra

cost.
Retaining customers make it difficult for competitors to enter a market or

increase their market shares.

Regular customer place frequent, consistent orders and therefore usually cost

less to serve.
The cost of acquiring and serving new customers can be substantial. A
higher retention rate implies fewer new customers need to be acquired and
they can be acquired more cheaply.

Finally, customer retention is a concept to enhance organizations ability to

retain customers and gain strategies. It is focus on creating and managing
relationships with customers more effectively through detailed and accurate
analyses of customers data using various

information technology data.

Method of Customer Retention

A retain customer tend to buy regularly and they will frequently recommend
your business to others. For customers to remain in an organization, they must
express some satisfaction to the products and

services. Companies should

9

derive methods of knowing what customers want and how to keep them
satisfied. Below are some techniques.
1

Customer Satisfaction Survey;

It is good for a company to regularly carryout a satisfaction survey because

one key to customer retention is customer

satisfaction. A highly satisfied

customer generally stays longer, buys more as the company introduces new
product and talks favourable about the company.
2

Gifts and Rewards;

This have their place, but more should be taken that a customer who can be
bought by a gift can be bought by someone else offering a better gift. Try to
think of gifts as thank you rather than a please. A company can offer a
benefit or reward like a frequency programmes (FPS), which is design to
provide rewards to customers who buy frequently and in substantial amounts.
Frequency marketing is an

acknowledgement of the fact that 20%

of a

companys customers might account for 80% of its business. Frequency

programmes are seen as a way to build long-term loyalty with these
customers, potentials creating cross-selling opportunities in the process. Some
studies suggest that if you are able to offer a gift that is relevant to longer
term attitude change.
3

Suggestion

Box;

A suggestion box is an important method of customer retention as it helps

customers to express themselves freely without going through a longer
procedure by suggesting ideas to company indirectly informing the company
10

that he\she is dissatisfied with the company. It seems that a customer who
complains or suggest an idea is actually trying to led you know that they
really value the relationship, if only you would take their ideas into
consideration.
4 Developed Dialogue;
Developing dialogue will help customers who wants to talk to the company.
Making this process simple and friendly increase the level of dialogue between
you and your customers and also generate warm feelings amongst your
customers. Regular dialogue or communication programmes include; letters,
special offerings and incentives where necessary. Dialogue increases renewal
and repurchase and developing the relationships across more than one product.
5

Complaint Handling;

No matter how perfectly designed and implemented a marketing programme is,

mistakes will happen, giving the negative experience being dealt with properly.
Handling a customers problem may be a routine, even boring tax to you, but
that problem could be most worrying experience of your customers life which
if not well handle, might cost them to switch.

2.2 Theoretical Framework

Programmes Required for Effective Customer Retention.
2.2.1

Adding Value to a Relationship.

11

Michael Porter (1980) argued that competitive advantage comes from the value
a company creates for its customers. Value is the worth of the product or
service. Adding value to customer retention helps organization to sustain a
perfect

relationship

with

its

customer

which

automatically

enables

the

organization to retain the customers. An organization can add value to its

relationship with customers through;
1
2

Developing an ability to solve customers problem or complain jointly.

Offer privileges to customers who which to enter into the same type of

formal relationship.
3 Making the reordering of products and services by customers easier.
2.2.2 Customer Loyalty
This is the willingness of a customer to stick to a particular brand of a
companys product irrespective of the fact that there exist many other
substitutes from the competitors. This is because the customer derives high
degree of satisfaction from such product or organization. The customer shows
his loyalty to the brand by buying the same similar or additional offering from
the

same

brand.

Most

organization

offer

loyalty

programs

to increase customer satisfaction level. Using customer satisfaction as tool, an

organization maintains the relationship with its existing clients and fulfils their
need through additional offering. It is quite challenging to achieve customer
loyalty. However, customer loyalty can be achieve by following a number of
key identifiable stages that the relationship goes through. This is more formerly
known as the relationship marketing ladder or customer loyalty ladder.
Growing a Loyal Customer;

12

People grow into loyal customer by stages. The process is established

overtime. Each of these stages is looked at one by one below.
Stage 1; Suspect
This is the starting point. Suspect are people or organizations who might
conceivably have an interest in buying the compannys product or services but
might not have the means or real intention to buy.
Stage 2; Prospect
In this stage, the company has the task to identify which suspects are really
good prospects customers with the motivation, ability and opportunity to
making a purchase by interviewing them, checking on their financial standing
and so on. Then it is time to send out the sales people.
Stage 3; Customer
When the sales people are sent out, the prospects then buy and become the
companys customer who buys or uses the companys product for the first time
and then repeat purchase.

Stage 4; Client
From the first time customer to a repeat customer, a customer becomes a
client due to regular purchases.
Stage 5; Advocate

13

From being a client, the customer becomes an advocate because he is not only
satisfied with the companys product delighted. An advocate recommends the
company and its products and services to others.
Stage 6; Partner
This is the final stage of loyalty but has very great challenges of turning
advocates into partners or supporters. Here, the partner does not only
recommend the company and its products and services to others but bring in
new customers as well.
Fig.1: Relationship Marketing Ladder

Advocate
Supporter
Client
Customer

Emphasis on
developing and
enhancing relationship
(Customer keeping)

Prospect
Emphasis and
new customer.
(Customer catching)

The Ladder highlights the process from targeting the customers, to adoption,
developing the relationship from customers to long term clients. From here, it
is then essential to encourage them to become both a support and advocates of

14

the company, in order that they can become marketing tools on their behalves.
Here, you not only retain them, but also use them to grow your market.
2.3 Empirical Literature
The link between customer satisfaction and customer retention.
Reichheld and Kenny [1990] specified six factors as imperative to improving
retention; senior management commitment, a customer focused culture in which
all

employees

and

managers

focused

their

full

attention

on

customer

satisfaction, retention information systems that tracked and analyzed the root
causes of defections; empowerment of front line employees to take action that
provided immediate customer satisfaction; continuous training and development;
and incentive systems based on customer retention.
Parasuraman, et. al [1984] identified a set of discrepancies, or gaps, between
how executive perceive the quality of the service they provide and the tacks
associated with delivering those services to customers.

They found that the

customers perception of service quality depend upon the size and direction of
the gap between the service the customer expect to receive and what he or
she perceives to have been received. The magnitude of this gap (which can be
either positive or negative) was determined by four interrelated variables;
1

The difference between actual

customer

expectations

and

management

perception of those expectation.

Between management perception of expectation and the translation of those

3
4

perceptions into service quality specifications.

Between service quality specifications service delivery. And
Between both service quality specification and service delivery, and external
communications to customers.
15

Parasuraman, et. al (1984) noted that these gaps can be a major hurdle in
attempting to deliver a service which consumers would perceive as being of
high quality. Because this study focused on the interaction between the firms
representatives and its customers. This author found the fourth gap [between
both

service

quality

specifications and

service

delivery,

and

external

communications to customers , to be of particular relevance.

Schlesinger and Heskett (1991) suggest that poor service was often build into
system

by designing

customer-contact

jobs

to

be

idioteen

transaction-

oriented. Low contact service, in which quality can be defined as

conformance to specifications and high contact service, such as customer
retention, that satisfy higher order human needs. They proposed that actively
understanding and managing the relationship between server and customer can
yield high service revenues through increased repurchase rates.
Citing research on customer satisfaction conducted by the forum corporation,
Schlesinger and Heskett (1991) noted that only 14% of customers stopped
patronizing service business because they were dissatisfied by the quality of
the product, while more than two thirds defected because of what they judged
to be indifferent or unhelpful service. This finding supported the observation
of parasuraman, et. al [1984] that customers judgments of high and low
service quality depend on how consumers perceive the actual service
performance in the context of what they expected.
Bowen and Lawler (1990) also

recommended that service

workers

be

empowered to solve problems creatively and effectively. Like Zeithaml, et al

(1990), they emphasize the importance of keeping frontline personnel informed
16

about organizational performance; providing problem solving skills and other

knowledge that helped employees contribute to organizational performance and
basing rewards on performance. They found that empowering employees to
provide a quick response to customer frustrations can

turn a potentially

frustrated or angry customer into a satisfied one. (Bowen and Lawler, 1990).
Bitran and Hoech (1990) also noted that defections are seldom the result of
ordinary interactions but of an organizations failure to handle abnormal
situations to the customers satisfaction.
Relationship of sales skills to Behaviours linked to customer satisfaction and
Retention.
Williams, Spiro and Fine (1990) noted that very few researchers have explored
the customer-sales person interaction from a communication perspective. They
proposed a model that focused on communication as the primary element of
this

interaction.

They

found

that,

although

many

authors

stressed

the

importance of verbal and non-verbal code (Marks 1981; Jackson et. al. 1988)
such as message order, patterns of argument, use of evidence, visual contact,
etc. In personal selling, most of the research had concentrated on non-sales
interactions. The customer retention function required that sales skills be
combined with service skills associated with quality and customer loyalty. This
researcher identified areas in which these two skill sets overlapped, to
determine which (if any) behaviours on the part of the representatives might
alter a customers decision to take some or all of their business to another
supplier.

17

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Background of the Study Area.
Les Societies Anonymes des Brasseries du Cameroun (SABC)

is a brewery

firm in the manufacturing sector and the brewery industry of the Cameroon
economy. Les societies des Brasseries du Cameroon [SABC] was found in
1948

as

subsidiary

of

French

company

les

Brasseries

et

Glaceries

Dindochine [BGI]. The companys first factory was constructed in Douala. It

later on open other factories in Yaounde, then Garoua, followed by Baffoussam
and lastly in Limbe.
Before the coming up of competitors, SABC had been enjoying monopoly on
the Cameroonian market since its creation until 1982.
At industry level, les Brasseries du cameroun is the leading brewery firm in
terms of the number of products available in the market, sales\distribution
units. Some of the products includes; 33 Export, Beaufort, Castel, Tuborg,
Amstel, Mutzig beer, Tonic, vinto juice, Pamplemouse, TOP[Anana, orange,
Grenadine, Citron]. And Tangui mineral water. Today, SABC holds about 75%
share of the Cameroonian market for beer and soft drinks.
As to its social activities, SABC owns several Cameroonian foot ball teams
and is a major sponsor of the Cameroonian National foot ball team. Since
1994, SABC has been running a foot ball school in Douala called LEcole de
foot ball Brasseries du Cameroun (EFBC) out of which most of the renowned
Cameroonian foot ball players were trained.
18

3.2 Sources and Types of Data

Primary source
This is data collected in the field for the very first time by the researcher.
This is when the data is gotten from the original source by the researcher
through the means of questionnaires, interviews as well as hidden observations.
Questionnaires;
A structured questionnaire was used and it has the advantage of presenting
questions in sequence.
Interview;
An interview is a face to face meeting between two or more people where the
interviewee is asked series of questions by the interviewer for a direct
response.
Secondary Source
This is information that has already been collected from the field and
analyzed. That is information collected from other people, and in most cases,
the information will not be presented in the required form.
The secondary data for this research were collected from books, articles,
archives, internet.

19

3.3 Variables of Data Collection.

Customer Service;
Can be defined as the provision of services to customers before, during and
after purchase. According to Turban et al (2002). Customer service is a
series of Activities designed to enhance
This

is the feeling

that

product

or

the level of customer satisfaction.

service

has

met

the

customer

expectation. If the product or service met the customer expectation, it will

definitely leads to the growth of the organization; because the sales volume
will increase.
Service Quality;
Zeithaml et al. (1996) described service quality as the extent of discrepancy
between the customers expectations and perceptions. A firm which provide
high level of service quality to its customers, will have a competitive
advantage over its competitors there by leading to the growth of the company.
Customer Satisfaction;
A highly satisfied customer generally stays longer, buys more as the company
introduces new product and talks favourable about the company. The key to
customer retention is customer satisfaction. A satisfied or delighted customer
creates an emotional bond with the company thereby leading to the growth of
the company.

20

Tool of Data Collection

In this

study, the questionnaire

is the instrument

(variable) used. The

questionnaire contained eight structured questions. A total of eight questions

were prepared with two, four, five to eight different available options. The
sample population include; students on internship, staff of les Brasseries du
Cameroun Muyuka and the people of Muyuka were made to provide
independent options on various issues on customer retention and organizational
growth. The questionnaires was distributed by the researcher and are expected
to be filled on the spot and group work was avoided so as to avoid the
influence of one respondent by another. The merit of this method adopted is
that it has assurance of data collection from the researchers sample population
and does not delay collection of questionnaires.
3.4 Method Of Data Analysis;
The data represented shall be analysed predominantly using quantitative method
of analysis.
The topic is a mere analysis of customer retention which is an independent
variable on organizational growth which is a dependent variable. (Customer
retention, the secret behind organizational growth). The Pearson product moment
correlation coefficient will be used.
The Pearson product moment correlation coefficient is use to find the strength
of the relationship between two variables that have been measured on interval
scales.

21

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation
The first point of consideration in the study before analyzing the data was to
assess the reliability of the predictor variables. This was intended to verify the
extent to which a scale produces consistent results if measurements are made
repeatedly. Nunnally (1967) recommended a value of 0.5 above as the
acceptable levels of reliability coefficient while Malhorta (1996) suggested that a
value of 0.6 or less generally indicate unsatisfactory internal consistency reliability.
Cronbach alpha reliability tests were performed on all scales.
Table 1: Reliability Coefficients (Cronbach Alpha)
Variables
Customer satisfaction
Customer loyalty
Customer retention
Source: Field survey, 2014

Alpha Coefficient: N=135

0.84
0.73
0.82

Table 1 presents the reliability coefficients of all the psychometric scales used. First,
with respect to predictors of growth scales, the Cronbachs alpha coefficient of
four variables ranged from 0.73 to 0.94 (coefficients 0.7 and above). The alpha
reliability indicates high internal consistency of all three predictors, with = 0.84
on Customer satisfaction , = 0.82 on Customer retention, and = 0.73 on
Organization growth. These scores were acceptable according to Nunnally (1967).
Table 1 presents the results of predictor variables reliability scales.

22

Table 2: Demographic Profile of the Respondents

Respondent characteristics
Gender

Frequency (n=135)

Percentage (%)

Male

107

79.3

Female

28

20.7

51 and above

0.70

36-50

34

25.2

20-35
Educational level

100

74.1

FLSC

3.7

O-LEVEL

5.2

A-LEVEL

10

7.4

DIPLOMA

29

21.5

84

62.2

Less than 2

1.5

3-5

78

57.8

5-7

36

26.7

19

14.1

11
23
92
9

8.1
17.0
68.1
6.7

Age

DEGREE AND ABOVE

Experience

7 and above
Monthly income
Less than 49,000
50,000-99,000
100,000-199,000
200,000 and above
Source: Field survey, 2014

A total of 135 responses were obtained in this study and secured for data analysis.
Based on these data, a demographic profile of respondents is presented in Table 2.
23

There are seven (5) demographic characteristics discussed. These include gender, age,
education, experience and monthly income.
From the table, the majority of the respondents are male (79.3%) as compared to
female (20.7%).
The average age of the respondent is between 20-35 years old and accounted for
74.1% (100 respondents). 25.2% respondents are in the ages of 36 to 50 followed by
only 0.7% or only one employee in the 51 and above years age group.
The composition of these respondents indicate that majority of the respondents
who are excellent or performed in the job are from the youth age group (20-35).
In terms of the formal education attainment there is an unbalance distribution
between those with tertiary education (83.7%/113 respondents) and secondary
education (12.6%/17 respondents) and primary (3.7% /5 respondents).
The respondents job experience between 5-7 comprises 57.8% (78 respondents),
26.7% (36 respondents) with 5 to 7 years experience and 14.1% (19 respondents) with
7 and above years experience. Only 1.5% (2 respondents) has an experience of less
than 2 year.
From the study, more than half of the respondents (68.1%) who are receiving
a monthly income between 100,000 and

199,000frs, salary range between 50,000-

99,000frs and 200,000 and above (17.0% and 6.7% respectively). The lowest salary
range was less than 49,000(8.1)

Table 4: Why do you consume Brasseries product

24

Respondent
Frequency
Quality products
92
Low price
11
Good customer service
23
Others
9
Total
135
Source: Field survey, 2014

Percentage
68.1
8.1
17.0
6.7
100

The composition of table 4 indicate that majority of the respondents who

consume brasseries product do so because of quality product (68.1%), good customer
service (17.0), low price (8.1%) and others (6.7)
Table 5: Efforts made by organization take to maintain a cordial relationship
with its customers and to get more Customers.
Respondent
Sales promotion
Credit facilities
Door to door delivery of products
Installation of refrigerators in customers
bars
Total
Source: Field survey, 2014

Frequency
78
36
2
19

Percentage
57.8
26.7
1.5
14.1

135

100

The composition of table 5 indicate Brasseries do sales promotion mostly to attract

and retain potential customers (57.8%), credit facilities (26.7) free refrigerators in
customers bars (14.1%) and door to door service (1.5) respectively.

Table 6: What benefit does the company get as a result of retention of customers?
Respondent
Increase in customer/sales volume

Frequency
78

Percentage
57.8
25

Increase net profit

Prospect of continuity and growth
Good organizational image
Total
Source: Field survey, 2014

36
19
2
135

26.7
14.1
1.5
100

The percentage composition of table 6 indicate benefit of customer retention with

a 57.8% (78 respondent) for increase in customer/sales volume, 26.7% (36) for
increase in net profit, growth with 14.1% (19 respondents) and good organizational
image 1.5% (2 respondents).
Table 7: Summary of hypothesis
Hypothesis
Ho Customer retention is not significantly related to
organizational growth
H1 Customer retention is significantly related to
organizational growth

Results
None

Support
Not supported

Significantly
related

Supported

4.2 Interpretation of Results

This section examines to find out the relationship customer retention and
organizational growth taken into consideration customer satisfaction. One would
expect that there would be some degree or correlations between customer
retention with organizational growth. In this case, Pearson correlation analysis
was

used

to

find

the

relationship between

the

predictor

variables

and

organizational growth. The preceding discussion is to answer the main objective

of this research, which is to investigate the relationship between customer
retention organizational growth. This is related to Hypothesis H 1 , which posits
that customer retention is significantly related

to organizational growth and

Hypothesis

is not related significantly to

Ho posits that

customer retention

organizational growth.
26

This can be sign in the table below

Table 8: Pairwise correlation matrix for customer retention and organizational
growth
Variable
Customer satisfaction
Customer loyalty
Customer retention
*p0.05

Growth target achieved (N=135)

R
Sig
0.016
0.850
0.165
0.056
0.188
0.0029

The result is presented in Table 8, shows three research variable

such as

customer satisfaction (r=0.016), customer retention (r=0.165), are not significantly

related to organizational growth. Thus, Hypothesis (Ho) Customer retention is not
significantly related to organizational growth is rejected.

Meanwhile customer

retention (r=0.188, p<0.05) is significantly related to organizational growth. The

finding suggested that the higher retention of customers is considered due to
quality product, promotion and price reduction that will strive for acceptance from
customers (new and old), thus organizational growth.
To confirm which predictor variables that have the relationship on organizational
growth, once again correlation analysis was run on all variables as shown on
Table 8. Only one variable, customer retention under the variable option showed the
positive correlation (r) exists between customer retention and organizational growth.
Table 8

shows

that

correlation

between

predictor

variables

and

sales

performance are at a positive relationships. However, only one variables was

significant where p<0.05 level.
This study attempts to investigate customer retention from the perspective of
organizational growth. Finally, the study also investigates the relationship
27

between predictor variables and organizational growth. The findings of the study
are summarized in Table 1. The correlation analysis was also done to see whether
there are relationships between predictors variables and organizational growth Table
8. All the predictor variables were found to have no relationships with the
organizational growth except customer retention that has a positive relationship
with organizational growth. As a summary, from the two hypotheses tested, only one
H1 was accepted (table 7).

28

CHAPTER FIVE
SUMMARY OF MAJOR FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Major Findings
Most organizations whether large or small, profit-making or not-for-profit
making always ensures continuity in their business activity by trying to meet
up with their objectives. However, different organization pursues different
strategies in achieving continuity and growth but the most common means that
cut across many organizations is by making sure that their customers are kept
intact. This is why some organizations will refer to their customers as the king
and tend to belief that their customers are what guarantee business success.
From the findings of this study, it has been realized that even though an
organization may so desire to boost up their sales, it will depend on how well
they meet up with their consumers needs. That, it is only when the
organization is able to identify the needs and values of the consumers of its
product and to meet up with majority of these needs and values that the
organization can achieve the retention of these consumers. This implies that
organizations are very committed to meeting customers needs and values. This
tie to the second hypothesis that asserts that organizations commitment has a
positive effect on customer retention.
It has also been realized that in respond to meet up with customers need so
as to maintain them, organizations tend to satisfy their customers by using the
following tools or techniques; sales promotions, provision of quality products

29

and services, granting credit facilities to their customers, prompt delivering of

products

or

services,

guaranteeing

after

sale

services,

maintaining

good

relationship with their customers, organizing parties for loyal customers,

awarding timely bonuses to customers, making direct extra phone calls to
customers to know and assist them in times of difficulties. Organizations have
also tend to provide social amenities such as pipe-born-water, health care
facilities, and education of underprivileged in the realm of corporate social
responsibility. Thus, we reject the first hypothesis that states that there is no
significant method use to retain customers.
Findings further review that customer retention is very important to an
organization and it provides a lot of benefit to both the organization and to
the

customers.

Such

benefits

include

increase

in

sales

volume,

good

organization image, increase in the level of net profit due to fast business
turnover, and the prospects of continuity and growth. Thus, we accept

the

second hypothesis that states that there is a significant method use to retain
customers.
5.2 Recommendations
The organization should also issue loyalty cards to their loyal customers.
This will enable the organization have information on their customer buying
behaviour as will help the organization in segmenting their products or
market.
Les Brasseries should improve on their communication skills. When
communication is effective, consumers become aware of the company
existence in the market and the various products they offer.

30

 When a new product is introduced, there should be one on more

sensitization of the product [personal selling] to give each individual a
broad view of the product.
Again, the management of les Brasseries du Cameroon Muyuka should be
able to deliver excellent quality services to their customers. This will help
them to have greater advantage over their competitors thereby retaining
both their customers and consumers.
Also, Les Brasseries du Cameroon muyuka should be able to manage their
transportation and cost of their products effectively and efficiently and also
avoid shortages of products in their warehouse.
Furthermore, management should study its product quality and compare it
with its competitors.
5.3 Significance of the Study\Justification
The importance of the study can be seen in five interest; that is, to the
company, government, public, to the researcher and other researchers.
To the Company
This study will help the company to know the possible strategies that will
help to retain customers. This will intend gives the company a competitive
advantage over its competitors.
With the application of customer retention, organization will be able to adapt
to any changes they might face in the future and how to better manage its
different customers which will help to reduce company expenditure.
Finally, it will help the company to collect and organize data about the
customer and help them analyze the data for future purposes and to have
advantage like quality and efficiency towards their customers.
31

To the Government and Public

This study will help the government to know how far this sector has helped
to create jobs and improve livelihoods in the country.
This study is of great importance in the business world today because; it is
going to help many investors to understand the various strategies used to retain
customers which will intend leads to the growth of the organization.
It will help many people to become entrepreneurs. This is because the study
will help them to know how to retain customers. Hence, some will be
interested in becoming entrepreneurs.
To The Researcher and Other Researchers
The study has help the researcher to acquire knowledge on how to provide
quality services to customers so as to keep within the organization.
This study has improved the researchers skills, enabling the researcher to
undertake further research in other areas.
Finally, this study also contributes to literature review as it provides the basis
for further research on this topic.

5.4 Conclusion
Based on the findings, this study concludes as follows;

32

That customer retention has positive effects on an organizational sales volume.

This is because customer retention guarantees a high degree of trust and
reliable information about a given product and such people tend to prepurchase, purchase and repurchase the organizations products.

When a

customer becomes so loyal to the organization, he\she is granted a credit

facilities because of the trust established between the organization and the
customer. The customer will obtain the product even when money is not
available to purchase. Installing the customer retention management application
enables a business to work with a single accurate data base customer records
that can be continually up dated and used for sales campaign and management
reporting.
That customer retention impacts the level of profitability. That the effectiveness
of tools and techniques used in maintaining customers will tend to determine
the success level of customer retention programs.
That quality services is very important on customer satisfaction and retentions.
The customers perception of service quality is the main factor predicting
customer satisfaction. High service quality could attract new customers, retain
existing customers, and even lure customers away from competitors

whose

service quality is perceived to be lower.

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