INTRODUCTION
For any Business to be successful nowadays due to pierced competition in the market place, globalization and technological advancement and differentiation must be highly considered (Tajedini & Trueman 2008). Equally, to gain and sustain a competitive advantage and gain market success, it is very important for businesses to take advantages of new opportunities and see how new products and market could be developed (Belthone & McHulbert & Pitt, 2004). This goes alongside with the notion of customer orientation strategy as a weapon to withstand competitiveness in the global market (Deshpande, Farley & Webster, 1993). Nowadays, large interest have been directed towards interpersonal organization, innovation and customer service.
The ability to create superior value for customer’s retention.
In recent years the internet has become an important instrument that has change the way we communicate and the way we do business. Globally the internet has become the primary source of information for billions of people. Online channels has change the change the ways business transactions is been done, and has greatly influenced industries and markets. The arrival of digital age has change ways customers make their decisions in terms of purchasing and how organizations operate their businesses. Approximately 50% of customers using online in the USA are advanced users of social networks, smart phones and other mobile devices (Kim & Co, 2012). This has proven how customers use core technology.
Originally, as internet appears to be having a comparable low costs characteristics in terms of investment and a channel that links the customers to the firm directly, were thought to have been responsible for the success of derived from online business services (Chan & Chen, 2008). But as customers begin to experience technical problems, delay in delivery of their desired products, and not responding to massages, not able to assess information, therefore put the reliability bestowed on internet as a channel of distribution was put at risk (Beldad et al, 2010). Base on this the efforts of online based businesses have been moved subsequently towards the improvement of online services. In order to succeed in this area e-commerce businesses must understand what kind of service quality online customers actually needed. The internet has moved marketing from its initial data based orientation into mutual and interactive experience with the customers (Payne & Frow, 2005).
Traditional marketing have always focus on creating new customers. But, leaky bucket theory sometimes refer to as "offensive strategy" idea is not only on customers’ acquisition but also include attracting back the dissatisfied ones from competitors and retaining all (Storbacker et al, 1994).
Many authors argues that even though acquisition of customers is important, it should not be considered as an immediate step in the process (Berry Gresham, 1992). The reason behind this is because it is cheaper to retain existing customers and also, retaining loyal customers’ produces profitability (Egan, 2011)
The role of service in creation and delivery of value to customers has greatly increased as a result of the latest consumption-led economy. Various firms are becoming fully aware of the fact service is a source of competitive of competitive differentiation. Therefore service excellence have been recognized as a profit driver. It is worthy of mention that the southwest Airlines and First Direct could be cited as good examples of companies noted to have used successfully, service to enhance customers experience of the value proposition. The transformation of cabin service into a form of entertainment by direct face-to-face recommendation. Equally, the remote banking been offered to customers by First Direct has technically given more beautification to the services. However, the two examples above have shown that customers experiencing the brand was as a result of actions and behavior of staff. Therefore, the brand is the service delivered by the staff.
Even though, high level of services is provided, it is still difficult to meet customers’ expectations. Customers’ expectations are becoming more demanding and having high service expectations. It is the best interest of organizations to respond accordingly. That is why employees are……..
Based on this, organizations now focus on staff recruitment, motivation and retention of staff. It has been proven by research that when employees are knowledgeable about the norms and values of a form that shows the degree of commitment to customer service. Therefore, they love their job and less likely to quit. This in turn strengthen the organization (Baker, 2003)
Empowering employees to live the brand, nowadays the latest approach to service requires great level of consumer responsiveness, and it a good opportunity for service organizations to have this as a differentiation factor of value creation. The new customers are looking for who will respond to their different needs, and this is the duty of the frontline staff. Actually it is the way employees feel about their jobs that is the same way they see the brand and that is the same manner they will present it to customers. This made most firms gave priority to employees’ empowerment. In this case instead, of mechanistic control of employees, organization help staff to understand the meaning of the brand and how to accomplish its objectives and also communicate performances to employees
Creating value
To create value that would be perceived by a particular customer means that his or her quality, delivery and costs expectations have been met. The needs of each customers are different so also their expectation. One customer may like a product today and may like to have another taste next time of visit (Vantrappen, 1992). Slater said that to create customer value, organization should not only focus on customers, but also at competitors, technologies and if the product can be perceived by customers as alternative satisfier. Organizations must also know the strength and weaknesses of their competitors. Slater further said that firms should maximize their organizations customer value creation strategies in order to be more effective (Slater, 1997). Similarly it was noted in Christopher (1996) that "the value is created when the perception of benefits received from the transaction exceed the costs of ownership." To this regard Woodruff (1997) suggest organizations need to learn deeply about their markets and the customers been targeted.
It is the customers that confirm value. The least expensive product or service might be given high value by some customers, while others might give high value to most expensive ones (Johnson et al., 1999).
Satisfaction
Customers’ satisfaction is always measure by looking at the difference between service expectations and the experience (Oliver, 1980). According to Churchill and Surprenant (1982) the said that an individual expectations are confirm when a product performs as expected and negatively dis-confirm when the product performs more poorly than expected, positively dis-confirm when performance exceed expectation. Dissatisfaction occur when a product is negatively disconfirmed"
Customers’ loyalty
It is the customers’ satisfaction that create customer loyalty and this in turn lead to customers retention and which later transcend to organizations profit making. Customers boycott organization can greatly affect the organizations financial performance more than any other factor of the organization as it a source of competitive advantage (Reicheld and Sasser, 1990). Research has confirmed that that the more a customer is retained the more the organization makes profit. Organization have to ask the question why customers leave before planning of how to retain them. This needs to be checked as negative experiences circulate faster than the positive ones, which might lead to further defection. Although, Oliver (1999) argues that even though, loyal customers are always satisfied, there are other factors that might be added which could range from customers relationship with the organization, social-cultural bonding, personal determination, value, trust and going extra mile to satisfy customers were as drivers of customers loyalty. Dalton, (2003) diluted this argument by saying that customers are loyal to organization that help solve problem and even go beyond.
Retention
It was observed by Levitt (1983) that the end of relationship between customers and most organizations often ends when a sales activity is completed. But the relationship would wax stronger if the organization can give after sales service. This will make the organization see if customer is truly satisfy or not, as failure to do this will lead to continuous customers defection. Johnson et al. (1999) proposed that, relationship enablers are the key components of that strengthened the bond and this will lead to long term customer-organization relationship. This enabler are committed to trust, dependence, cooperation, and information exchange. Marketing orientation always look at how to create customers value no matter the sector as this always create an avenue for customers to stay