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Showing posts with the label e-satisfaction

E-Satisfaction and Social Interaction Create E-Loyalty

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Retailers and service providers are moving online in an attempt to raise their financial performance. The online world has some different methods of marketing that help to retain customers. In the online world where there are low switching costs companies will need to spend a greater portion of their efforts on customer retention.   A study by Christodoulides and Michaelidou (2011) helps better understand what companies must do to create e-satisfaction and e-loyalty.  Companies spend nearly double the amount of their budgets on new customer acquisition while spending half that amount retaining existing customers (Forrester Research, 2008). As a general rule, the cost of gaining new customers is about five times the cost of retaining current customers (Strauss, et. al. 2006).   The existing customers have long tail value and should receive greater emphasis in future strategic considerations.  How e-companies retain their customers is an important consideration for boosting