A theoretical analysis on the impact of relationship marketing practices on customer retention: A case of transformed small grocery retail shops in Mangaung Municipality area in South Africa

Abstract

Given the fact that South Africa is one of the global emerging markets, many of the emerging small businesses are transiting from informal to formal businesses. The importance and contribution of these ventures in economic growth and job creation cannot be overemphasised especially in times of technical economic recession. Even tourists are more likely to repeat visit a business on later travels if they are satisfied with service quality. Small grocery retail shops in Mangaung Municipality area are no exception. Relationship marketing is considered as a vital option for achieving customer retention and growth among small businesses, particularly, in the retail industries. However, this paper provides a robust insight into the transformed small grocery retail shops by theoretically analysing relationship marketing and its effect on customer retention for business growth. It, therefore, remains concerning in this paper to interrogate customer retention given relationship marketing practices as well as effective options for these small grocery retail shops toward warding off counterproductive competition in their business environment. Options explored seek to assist this sector to build relationships with their customers, ensure their satisfaction and ultimately retain them for growth, with the focus on transformation. The method adopted for this study was desk-top literature review as well as observation. Finally, recommendations for improved practices are provided. It is hoped that although limited in scope, these will help support drives to sustain business ventures.

Keywords

• relationship marketing
• customer retention
• transformed small grocery shops
• spaza shops
• Mangaung Municipality
• South Africa and SMMEs
• tourists