ANALYSIS OF THE MARKETING STRATEGY ON CUSTOMER RETENTION: AN EMPIRICAL STUDY OF ARDYS' BEAUTY SALON

Abstract

Ardys Beauty Salon has been a prominent provider of beauty services for over 35 years, maintaining a strong customer base and solid market position. However, despite its long-standing success, the salon faces ongoing challenges, including extended waiting times, inconsistent service delivery, pricing concerns, and limited effectiveness in promotional communication. This study aims to evaluate the effectiveness of marketing strategies in fostering customer retention at Ardys Beauty Salon, with particular focus on service quality, pricing structure, location accessibility, promotional efforts, and customer engagement. This study adopted a quantitative research approach, using survey questionnaires to collect data from clients of Ardys Beauty Salon. Statistical tools were applied to evaluate the relationship between marketing strategies and customer retention, aiming to determine the strength and significance of their correlation. The results reveal a strong and statistically significant correlation between marketing strategies and customer retention (r = 0.7312, p = 0.0162), thus rejecting the null hypothesis. This underscores the crucial role of effective marketing in fostering customer loyalty at Ardys Beauty Salon. Although respondents generally viewed the salon’s promotional activities positively, several issues emerged, including prolonged waiting times, inconsistent service quality, poor communication of special offers, and pricing concerns. Clients also reported challenges in booking appointments and expressed a desire for a more seamless customer experience. Based on weighted mean scores, service quality received a rating of 3.28 (Very Good), pricing at 3.23 (Good), place at 2.75 (Good), promotions and advertisements at 3.30 (Good), and customer interaction at 3.22 (Agree). These figures reflect both the salon’s strengths and the need for targeted improvements. To enhance customer retention, the study recommends optimizing service delivery, simplifying pricing structures, intensifying promotional efforts, and leveraging digital platforms. Furthermore, continuous staff training—particularly in communication and customer service—can contribute to stronger client relationships and sustained business growth. This study affirms the critical importance of continuous enhancement in marketing strategies and service quality to maintain and strengthen customer loyalty. By proactively addressing current issues—such as service inconsistencies, pricing concerns, and communication gaps—and integrating customer insights into strategic planning, Ardys Beauty Salon can significantly elevate client satisfaction and reinforce its competitive advantage. The proposed recommendations serve as actionable pathways for sustainable business growth and long-term customer retention.