As stated earlier 100 per cent retention may not be a very practical retention strategy. An airline like Jet Airways or Indian Airlines would certainly like to retain 100 per cent of its customers in the top segment (perhaps Business class). But there is a vast segment which is highly price sensitive and several dimensions are to be analyzed before a decision is taken to retain these price-sensitive customers with rewards and freebies.
Price-sensitive customers may shift to another brand which offers them more freebies; besides it may be worthwhile to analyze the purchase pattern of these price- sensitive customers – what is the potential profitability of retaining these customers?
