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Balancing Acquisition and Retention Accommodating Capacity Expansion in a Telecommunication Company

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Customer acquisition and customer retention are two prominent interrelated processes in customer relationship management. Previous literature shows that balancing interventions in the two processes are required in resulting better total customer lifetime value. Based on the preliminary interview, it is found that a telecommunication company may experience inavailability of fiber optic capacity in supporting customer acquisition and retention. This paper thus attempts to develop a conceptual model of balancing acquisition and retention accommodating capacity expansion in the form of stock flow diagram. The model consists of seven subsystems: Demand, Capacity Planning, Capacity Expansion, Existing Capacity, Customer Acquisition, Customer Retention, and Profit Generation. Moreover, the paper suggests validation and policy design in further research.
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Keywords: Acquisition; Capacity Expansion; Customer Lifetime Value; Retention

Document Type: Research Article

Affiliations: Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung 40132, Indonesia

Publication date: November 1, 2017

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  • ADVANCED SCIENCE LETTERS is an international peer-reviewed journal with a very wide-ranging coverage, consolidates research activities in all areas of (1) Physical Sciences, (2) Biological Sciences, (3) Mathematical Sciences, (4) Engineering, (5) Computer and Information Sciences, and (6) Geosciences to publish original short communications, full research papers and timely brief (mini) reviews with authors photo and biography encompassing the basic and applied research and current developments in educational aspects of these scientific areas.
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