Low frequency signals and the strategy of customer retention

Abstract

Research results are reported about monitoring various internal company variables, such as Customer Service and Quality Control as related to the strategy for retaining customers. The purpose was to evaluate the ability to identify situations where customers leave during turbulent business environments according to the concepts of low and high frequency signals proposed by Ansoff (1993). Theses signals show, more or less explicitly, situations that require company action to retain customers. Inherently companies are not prepared to detect the low frequency signals, the more important during uncertainties. The case study method investigated a Brazilian freight company with quantitative and qualitative methods. Low frequency signals were not suitably detected while high frequency signals were not sufficient to identify critical customer retention situations. The conclusion was that in turbulent times, greater effort must be applied to monitor low frequency signals in order to implement an effective customer retention strategy.