The research sought to assess the effectiveness of customer retention strategies in enhancing
brand loyalty at FAVCO. The first objective of this research study was to evaluate the
effectiveness of customer retention strategies in enhancing brand loyalty at FAVCO.
Secondly, it was to determine factors contributing to customer dissatisfaction at FAVCO and
lastly to establish benefits contributed by customer retention at FAVCO. The research made
an assumption that major factors contributing to brand loyalty were customer retention
For the past 2 years, FAVCO has been facing the problem of corporate customers switching
some of their brand choices to competitors like Selby, Valley Fresh and Interfresh. This
forced the company to engage into expensive strategies which included price markdown and
new customer acquisition. The company in early 2012 invested in customer retention
strategies which included customer service, communication, total quality management and
complaint management to fight the challenge but the company failed to make corporate
customers loyal to the FAVCO brand. The researcher used case study research design and the
case studies used were both exploratory and descriptive case studies. Probability sampling
method (cluster sampling) and non-probability methods (convenient and judgemental) were
The researcher used a sample of 28 respondents from corporate customers, management and
employees. Data collection was done through interviews with the Sales, FMCG and the
Quality control manager as well as questionnaires which were distributed to employees and
corporate customers. The research found out that customer retention strategies had strong
impact on brand loyalty but more attention was needed in improving them to effectively
retain customers and making them loyal to the FAVCO brand.
The major recommendations were that FAVCO should not only acquire new customers but
rather retain its existing key customers. Further to this, FAVCO should consider also internal
marketing, key account management and service recovery as other customer retention
strategies that enhance brand loyalty. Finally, FAVCO management was recommended to
practice cross departmental participation in planning and improving the retention process to
make sure that everyone in the organisation is involved in the customer retention process.
RUWENDE, T (2021). An Evaluation Of The Effectiveness Of Customer Retention Strategies In Enhancing Brand Loyalty. A Case Of Favco Harare. Afribary. Retrieved from https://afribary.com/works/an-evaluation-of-the-effectiveness-of-customer-retention-strategies-in-enhancing-brand-loyalty-a-case-of-favco-harare
RUWENDE, TATENDA "An Evaluation Of The Effectiveness Of Customer Retention Strategies In Enhancing Brand Loyalty. A Case Of Favco Harare" Afribary. Afribary, 04 May. 2021, https://afribary.com/works/an-evaluation-of-the-effectiveness-of-customer-retention-strategies-in-enhancing-brand-loyalty-a-case-of-favco-harare. Accessed 15 Aug. 2022.
RUWENDE, TATENDA . "An Evaluation Of The Effectiveness Of Customer Retention Strategies In Enhancing Brand Loyalty. A Case Of Favco Harare". Afribary, Afribary, 04 May. 2021. Web. 15 Aug. 2022. < https://afribary.com/works/an-evaluation-of-the-effectiveness-of-customer-retention-strategies-in-enhancing-brand-loyalty-a-case-of-favco-harare >.
RUWENDE, TATENDA . "An Evaluation Of The Effectiveness Of Customer Retention Strategies In Enhancing Brand Loyalty. A Case Of Favco Harare" Afribary (2021). Accessed August 15, 2022. https://afribary.com/works/an-evaluation-of-the-effectiveness-of-customer-retention-strategies-in-enhancing-brand-loyalty-a-case-of-favco-harare