Analysing Customer Retention Strategies and Their Impact on Customer

Loyalty: A Study on Ryanair

 Table of Contents
1. Introduction.......................................................................................................................5

1.1 Problem Statement.......................................................................................................5

1.2 Theoretical Framework...............................................................................................5

1.3 Purpose Statement.......................................................................................................6

1.4 Study Significance.......................................................................................................6

1.5 Organization Background............................................................................................7

1.6 Aim..............................................................................................................................7

1.7 Questions.....................................................................................................................7

1.8 Objectives....................................................................................................................7

1.9 Research Structure.......................................................................................................8

2. Literature Review.............................................................................................................9

2.1 Introduction.................................................................................................................9

2.2 Customer Retention Strategy.......................................................................................9

2.2.1 Factors Affecting Customer Retention Strategy.................................................10

2.2.2 Different Customer Retention Strategies...........................................................11

2.2.3 Importance Of Customer Retention Strategy.....................................................11

2.3 Customer Loyalty In The Airline Industry................................................................12

2.3.1 Factors Affecting Customer Loyalty..................................................................13

2.3.2 Importance Of Customer Loyalty......................................................................13

2.3.3 Challenges In Ensuring Customer Loyalty........................................................14

2.4 Client Retention Blueprint Of Ryanair To Its Customer Loyalty..............................14

2.5 Conceptual Framework.............................................................................................15

2.6 Literature Summary...................................................................................................16

3. Methodology....................................................................................................................17

3.1 Introduction...............................................................................................................17

3.2 Philosophy.................................................................................................................18
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 3.3 Approach...................................................................................................................18

3.4 Design........................................................................................................................19

3.5 Method.......................................................................................................................20

3.6 Strategy......................................................................................................................20

3.7 Data Source And Collection......................................................................................21

3.8 Data Analysis.............................................................................................................21

3.9 Sample Size...............................................................................................................22

3.10 Ethical Considerations...........................................................................................22

4. Findings and Analysis.....................................................................................................23

4.1 Introduction...............................................................................................................23

4.2 Demographic Analysis...............................................................................................23

4.3 Findings.....................................................................................................................24

4.3.1 Reducing Customer Acquisition Cost................................................................24

4.3.2 Ensuring Continuous Improvement...................................................................25

4.3.3 Ensuring Strong Online Presence.......................................................................26

4.3.4 Improving Customer Experience.......................................................................27

4.3.5 Customer Loyalty...............................................................................................28

4.3.6 Correlation Analysis...........................................................................................30

4.3.7 Regression Statistics...........................................................................................31

4.4 Interview Findings.....................................................................................................31

1. References........................................................................................................................33

2. Appendices.......................................................................................................................36

2.1 Survey Form..............................................................................................................36

2.2 Survey Profile............................................................................................................36

2.3 Survey Socio-Demographic Profile...........................................................................37

2.4 Survey Questionnaire................................................................................................37

2.5 Interview Profile........................................................................................................41

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2.6 Interview Questionnaire............................................................................................41

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 1. Introduction
1.1 Problem Statement
The customer retention strategy can be termed as the company practice to retain the
customers without switching to the competing business (Hawkins and Hoon, 2019). The
primary intention of the customer retention strategy is to increase the customer satisfaction
towards the product or service quality offered by the business. The business which can offer
superior quality to the customers can make sure that the customers have positive attitude
towards the business and thus it increases the possibility of enhancing the customer loyalty
(Omoregie et al., 2019). The business tries to keep up with its market position and improve
consumer loyalty where it understands the adequacy of its client reliability drives (Khudhair
et al., 2019). The business which can make sure that the customers are properly served and
acknowledged can enrich the customer loyalty and acceptance for the long run.

The primary objective of customer retention initiatives is to effectively sustain relationships

with customers who contribute value by mitigating the rate at which they discontinue their
engagement with the business (Mashenene et al., 2019). The establishment of customer
loyalty is imperative for the long-term viability of a company operating within fiercely
competitive markets. The future value of the relationship and the level of trust that customers
have in the organization are both factors that influence customers' choices to either continue
or terminate a relationship (Salem, 2021). The customer loyalty plays a very crucial role
where the assessment of the effect of customer retention strategy on the customer loyalty
should be assessed. The researcher wants to identify the effect of customer retention strategy
on the customer loyalty in the airline businesses through conducting the first hand experiment
on Ryanair.

1.2 Theoretical Framework

A customer retention strategy is very effective for increasing the trust of the customers
toward any specific organisation. It can help organisations to get support from customers to
increase the number of new customers and loyal customers (Rahmatulloh and Melinda,
2021). The organisations can collect updated information from the market to overcome a
number of challenges for increasing customer loyalty. Organisations can reduce their
marketing cost by offering the products or services at the lowest cost to get the most
competitive advantages (Islam et al., 2021). Business organisations can offer the best reward

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to the customers for getting them more motivated to collect the products for a continuous
time.

The business also provides their satisfaction rating for which the organisation can bring the
necessary initiatives for making it acceptable for the further time (Bryson et al., 2020). The
study will focus on the outcome of the customer retention strategy affecting the customer
loyalty in the hospitality sector from the study on Ryanair.

1.3 Purpose Statement

The customer retention strategy can be termed as the decision taken by the business in
increasing the customer acceptance and influence them to purchase repeatedly (Kim et al.,
2020). The customer retention strategy helps the business to make sure that the customers are
properly influenced to enhance their loyalty (Myo et al., 2019). The customer retention
strategy enables the business to make sure that the customers are positively attached with the
business which helps increasing the profit margin from 25 to 95% within the airline business
(Forbes, 2022). The customer retention strategy of the airline business plays a very crucial
role in increasing the customer pleasure towards the service provided by the business
(Rahmatulloh and Melinda, 2021).

When an airline business can make sure that the customers are properly motivated towards
purchasing its services, the scope of switching to the other businesses reduces to the
minimum (Capponi et al., 2021). Ryanair has carried out different client unwaveringness
drives, their adequacy and effect on client steadfastness have not been widely investigated.
Thus, the evaluation of the customer retention strategy on affecting the customer loyalty will
be made by conducting the primary assessment on the customers and employees of Ryanair.
The high focus on identifying the effect of customer retention strategy influenced the
researcher to conduct the analysis on the customer loyalty in Ryanair from the assessment.

1.4 Study Significance

The customer loyalty plays a very important role in enriching the business competitiveness
and acceptance to the potential customers. Thus, the businesses use different customer
retention strategies to enhance the customer loyalty to the sector the work (Khudhair et al.,
2019). Due to the significant value that loyal customers imply to the organisation, the focus
on the customer retention strategies are being highly prioritized by the business. The airline
business is quite competitive where the pricing and the service can help increasing the

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customer loyalty with the development of retention and loyalty initiatives to improve the
customer loyalty (Capponi et al., 2021). The reasoning behind this study is to identify the
customer loyalty in the aircraft business, explicitly inside the setting of Ryanair.

1.5 Organization Background

Ryanair started its journey from 1984 which is popular for its minimal expense carrier, works
in a profoundly cutthroat business climate. It has been accepted for its client maintenance
significance in guaranteeing productivity and supported development. It has a fleet size of
563 aircraft having operations in 222 destinations. It has it headquarter in Dublin, Ireland
which made an annual revenue of €10.775 billion and a Net income of €1.314 billion in 2023
(Ryanair 2023). About 19,000 employees are currently working in Ryanair which is focusing
on higher customer satisfaction and retention. In this unique situation, this study expects to
lead a far-reaching examination of client maintenance methodologies and their effect on
client faithfulness, with a particular spotlight on Ryanair. Ryanair has arisen as a noticeable
player in the carrier business, eminent for its savvy approach and broad organization.

1.6 Aim
This study aims to investigate the productivity of Ryanair's client retention blueprint and its
impact on client commitment.

1.7 Questions
The research questions are as follows –

 What are Ryanair's patron loyalty initiatives towards its customers?

 What are the customer perceptions towards Ryanair's client retention blueprint?
 What is the impact of Ryanair's client retention blueprint of Ryanair to its customer
loyalty?
 What are the management and staff perceptions regarding the customer retention
strategies and their impact on customer loyalty at Ryanair?

1.8 Objectives
The research objectives are as follows –

 To assess Ryanair's patron loyalty initiatives towards its customers.

 To measure the customer perceptions towards Ryanair's client retention blueprint.

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  To explore the impact of Ryanair's client retention blueprint of Ryanair to its customer
loyalty.
 To gain the management and staff perceptions regarding the customer retention
strategies and their impact on customer loyalty at Ryanair.

1.9 Research Structure

Chapter Topic

Introduction This chapter included the research significance, problem

statement, purpose statement, aim, objective and questions to
be answered from this study

Literature review This chapter included the critical evaluation of existing

journals and articles to develop the research gap

Methodology This chapter included the selection and justification of data

collection and analysis process to conduct the research as per
the set aim and objectives

Findings and Analysis This chapter included the analysis and the discussion on
findings based on the set objectives

Conclusion and This chapter included the research conclusion showing the
Recommendation attainment of the findings and recommendations for Ryanair
to ensure the better customer loyalty.

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 2. Literature Review
2.1 Introduction
Customer retention strategies are very effective for increasing the number of loyal customers
along with the profit margin (Rahmatulloh and Melinda, 2021). In contemporary times, it is
very challenging to manage the customers by offering the best quality products. The
organisations found the behaviour of the customers is changing very fast. They always want
to collect the product with innovation to fulfil their demand. Customer loyalty is very
important for increasing the brand value of an organisation which can be possible by offering
the best quality of products and services (Nguyen-Phuoc et al., 2020). The researcher has
collected some relevant articles, journals and other published information about the process
of analysing customer retention strategies, the impact of a customer retention strategy, the
impact of a customer retention strategy on customer loyalty and so on. It has reviewed the
proper structure for collecting the accurate information to include them for producing the best
outcomes.

2.2 Customer Retention Strategy

According to Hawkins and Hoon (2019) customer retention strategies are the combination of
processes to make the customers satisfied for increasing customer loyalty. Khudhair et al.
(2019) stated that customer retention strategies refer to the processes applied by organisations
to get the customers more influenced to collect the necessary products for further time to
fulfil their demand. They also added that it is the process to increase the profit margin on a
regular basis. Mashenene et al. (2019) stated that customer retention strategy is the process of
improving the customer lifetime value for getting them motivated to stay beside the
organisations for implementing the strategies successfully to become successful.

Myo et al. (2019) stated that customer retention strategy is the process of creating brand
loyalty that can influence the customers to purchase repeatedly to get the most satisfactory
portion of sales from the competitive market. Omoregie et al. (2019) define it differently and
state that customer retention strategy is the process of ensuring the services are based on the
customer's expectance to get them positive every time for accepting any new and innovative
products for a further time. Romdonny and Rosmadi (2019) argued with the definition and
defined that customer retention strategy is the process of overcoming numerous challenges of
the organisations for ensuring that the customers are satisfied by getting the products based
on their expectation. Rizan et al. (2020) defined that customer retention strategy as the

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process for maximizing the profit margin of the organisations for attaining every single
assigned objective within the fixed time.

2.2.1 Factors Affecting Customer Retention Strategy

According to Khudhair et al. (2019), customer retention strategy mainly affects its
implication process for which there is a huge difference between successful and failed
organisations. Almohaimmeed (2019) supported the opinion and added that the major factor
affecting the customer retention strategy is customer satisfaction where the organisations
need to collect accurate information about the fast-changing behaviour of the customers to
provide accurate products to meet their demand. Hawkins and Hoon (2019) argued with the
opinion and stated that the relationship between the customers and organisations is the major
factor that affects the customer retention strategy. They also added that if the organisations
can develop the connectivity between the customers in the most effective way it can be
possible to make the customer retention strategy successful in any critical situation.

Adam et al. (2020) supported the opinion and added that the pricing issues of the
organisations can affect the customer retention strategy where the organisations with the most
effective pricing strategy get the acceptance from the customers to increase the retention rate
for obtaining higher customer loyalty. Capponi et al. (2021) stated that the quality of the
products and services affects the customer retention strategy and the organisations can
motivate the customers by ensuring the best combination of quality products and services for
fulfilling the demand of the customers. Islam et al. (2021) stated that obtaining the trust of the
customers or developing an emotional relationship with the customers can help organisations
to increase the rate of customer retention to maximize the profit margin. It is a very effective
process that impacts directly on the customer retention strategy and helps the organisations to
make the strategy successful. Rahmatulloh and Melinda (2021) concluded that customer
retention strategy is the process of increasing the number of satisfied customers which can be
affected by the initiatives of the organisations to ensure the safety and security of the
customers by avoiding any kind of process that can impact on the environment to increase the
risk factors for them.

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 2.2.2 Different Customer Retention Strategies
According to Gitahi and Misango (2020), organisations can implement different types of
customer retention strategies to increase the number of loyal customers to obtain the desired
sales from the fast-changing and highly competitive market. Han et al. (2020) supported the
opinion and added that building customer loyalty through shared value is the most effective
customer retention strategy which enables the organisations to obtain the most increasing
customer retention rate. Kim et al. (2020) stated that the organisations can implement the
process of frequently asking for feedback as the strategy of customer retention by which it
can be possible to get the customer positive by getting the products as per their requirements.
They also added that it is the most accepted process by organisations as it offers to collect
accurate information for including them to produce innovative products for overcoming the
market challenges successfully.

Larsson and Broström (2020) argued with the opinion and stated that ensuring the fastest and
lower cost delivery is the most effective strategy for customer retention which is offered by
the organisations to the customers as the reward. They also added that the organisations can
also offer the customers to charge less delivery for purchasing severe time or collecting the
products for a fixed amount. Nguyen-Phuoc et al. (2020) further argued with the opinion and
stated that the customers never think about the price of the product or cost of delivery rather
they want to collect the best quality products which is the most effective strategy for the
organisation for customer retention. Rizan et al. (2020) stated that providing the products
with diversity and ensuring the fastest refund of products return is the most effective strategy
to get the increasing customer retention rate from the most competitive market. Salem (2021)
supported the opinion and added that when the organisations provide more importance
toward the customers and their opinion it can be possible to get their most satisfaction by
making them convinced to stay near to the organisations for a long time to collect the
necessary products.

2.2.3 Importance Of Customer Retention Strategy

As per Khudhair et al. (2019), customer retention strategy is the main strength for
organisations to increase brand value in the competitive market for obtaining the desired
outcomes within the fixed time. Hawkins and Hoon (2019) supported the opinion and added
that customer retention strategies help organisations to increase the opportunity to build the
relationship of trust for increasing the sales and repeat sales for maximizing the profit margin.

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Almohaimmeed (2019) argued with the opinion and stated that customer retention strategies
introduce numerous difficulties in the organisations and it is the major reason for increasing
the overall cost of the organisations. So, the organisations can not able to obtain the most
satisfactory margin of profit for ensuring financial sustainability. Adam et al. (2020) further
argued with the opinion and stated that customer retention strategy helps the organisations to
make the customers convinced in the systematic process for influencing them to make the
decision for purchasing again and again which is the best approach for obtaining the most
satisfactory margin of profit.

Anees et al. (2020) emphasized the matter of customer retention strategy and mention that a
5% increase in the customer retention rate can help an organisation to increase its profit
margin by 25% to 95% by getting them for repeated purchasing and their active advocacy.
Bryson et al. (2020) supported the opinion and added that for the reason of huge development
of technology, the organisations can obtain huge customer engagement with the customer
engagement strategy. The satisfied customers share their satisfaction margin through different
online media and recommend others to collect the products which is the most effective
process for obtaining the most outcomes with the strategy of customer retention.

2.3 Customer Loyalty In The Airline Industry

According to Omoregie et al. (2019), customer loyalty is the process of developing a positive
relationship with the customers to make them influenced for repeat purchasing which is very
important for the airline industry to get the desired number of customers. Myo et al. (2019)
supported the opinion and stated that it is very important for the airline industry to ensure the
best services to the customers to make them satisfied which is the most effective way to
increase the customer loyalty rate to become successful with the innovative plans. Mashenene
et al. (2019) stated that the pricing strategy is also a major factor in the airline industry to
attain the trust of the customer for increasing the rate of customer loyalty for becoming
successful with the innovative strategies for increasing the customer satisfaction and loyalty
rate. Khudhair et al. (2019) stated that customer loyalty in the airline industry is more
important for getting customers of different categories which also impacts their traveling
habits.

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 2.3.1 Factors Affecting Customer Loyalty
According to Romdonny and Rosmadi (2019), there are various factors that can affect
directly or indirectly customer loyalty and the organisations need to implement the best
strategies for obtaining the desired rate of customer loyalty. Rizan et al. (2020) stated that the
value and quality of the offering thing is the most important factor that affects customer
loyalty where the organisations need to collect information about the customer intention and
expectations for making the strategy successful. Capponi et al. (2021) argued with the
opinion and stated that the market mix strategy is the most important factor affecting
customer loyalty where the organisations need to ensure the best services or products by
staying near to the customers and it needs to promote properly to make the customer
convinced with the provided information.

Islam et al. (2021) further argued with the opinion and stated that corporate image is the most
important factor affecting customer loyalty where the reputed organisations can influence the
customer easily to make them loyal. Rahmatulloh and Melinda (2021) stated that the
advocacy of the customers is very effective and fruitful for getting the greatest number of
loyal customers. With the development of technology, organisations can influence customers
to provide their satisfaction margin through different online media that can attract other
people to make the decision to purchase. Salem (2021) stated that the rewarding process with
the quality products affects customer loyalty where the organisations offer cashback offers or
free delivery or such kind offers for purchasing continuously and the customers try to fulfil
the requirements again and again.

2.3.2 Importance Of Customer Loyalty

As per Almohaimmeed (2019), customer loyalty is the main strength of any organisation
which can be possibly understood by the proverb the more loyal customers offer, the higher
the profit. Gitahi and Misango (2020) make the matter clearer by stating that the loyal
customers spend 31% higher than the new customers which is very effective for obtaining the
increasing sales from the most competitive market. Han et al. (2020) argued with it and stated
that customer loyalty increased the responsibilities of the organisations which is very
challenging to manage and it can impact negatively on the profit margin as the organisations
take every initiative for the well-being of the customers. Kim et al. (2020) further argued with
the opinion and stated that for increasing the customer loyalty rate it can be possible to obtain

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the most satisfactory number of customer engagement with fewer efforts where the
organisation can cut down its marketing cost for maximizing its profit margin.

Larsson and Broström (2020) stated that customer loyalty is very important for implementing
numerous innovative strategies and making them successful in expanding the business areas
and more satisfied customers with the advocacy of the loyal customers. Nguyen-Phuoc et al.
(2020) supported the opinion and added that the local customers also help to collect the
updated and accurate information of the market to include them for producing the best quality
products for increasing the market share for reaching the destination.

2.3.3 Challenges In Ensuring Customer Loyalty

According to Hawkins and Hoon (2019), organisations can not ensure the most customer
loyalty in the easiest process as there have to face numerous risks and challenges to get the
most customer loyalty. Adam et al. (2020) supported the opinion and stated that to ensure
customer loyalty the organisations can not able to produce plans to attain more new
customers. They also added that most of the time the organisations failed to implement the
plans for customer retention and obtaining new customers at the same time. Bryson et al.
(2020) stated that most of the time the customers collect the products from different
competitive organisations and they try to collect the best products with the lowest cost. In this
situation, ion it can be not possible to make them loyal as it can be not possible to ensure the
products and services based on their expectation every time.

Anees et al. (2020) stated that the development of the technology is also introduced the most
challenges for the business organisations as the customers get the opportunity to collect the
products from any place. They also added that in this situation the behaviour can be changed
without any reason which is very challenging for any organisation to offer different kinds of
products at the same time. Islam et al. (2021) stated that many organisations can not able to
fulfil every requirement of the customers to make them loyal for which the customer gets
dissatisfied and they do not get interested in collecting the products for the next time.

2.4 Client Retention Blueprint Of Ryanair To Its Customer Loyalty

According to Romdonny and Rosmadi (2019), Ryanair is very effective and highly concerned
with increasing customer loyalty and it produced the most effective blueprint for increasing
the customer loyalty rate. Omoregie et al. (2019) supported the opinion and added that it tries
to collect updated information about the market to produce the products effectively to attain
the concern of the customers and increase the customer loyalty program. Myo et al. (2019)
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stated that it tried to ensure the best pricing process for getting the acceptance from the
greatest number of clients in the competitive market.

It helped the business to get the most client engagement to make the strategy successful.
Mashenene et al. (2019) stated that it collects the feedback from the client and analyse them
critically so that it can be possible to develop the strategy for ensuring the most customer
satisfaction for getting the most customer loyalty rate. They also added that it motivates the
clients to share their opinions after taking the services and provide the best solution to make
them motivated and loyal.

Almohaimmeed (2019) supported that it also provides more evaluation toward the safety of
the customers which helps to make the customer highly convinced to take the services from it
to make their life more secure and effective. Khudhair et al. (2019) added that its
effectiveness in implementing different rewarding systems allows it to increase customer
loyalty and for this reason, it can develop a strong relationship with the customers for their
advocacy for increasing the number of new customers along with the loyal customers.

2.5 Conceptual Framework

The conceptual framework has been prepared from the critical evaluation of the existing
information published in the journals and articles to develop the result on the identified gaps.
The following framework has been prepared from the literature review –

Figure 1: Conceptual Framework

The customer retention strategies in the airline industry helps the business to reduce the
customer acquisition cost along ensuring the continuous improvement in the customer
perception which can be evaluated in affecting the customer loyalty. The researcher also
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identified some gaps in identifying the effect of developing strong online presence and
building satisfying customer experience to affect the customer loyalty which will be analysed.

2.6 Literature Summary

Customer retention strategies are the most important thing for any organisation to increase the
profit margin and get the most customer loyalty. In the organisation it is not possible to make
every customer satisfied by offering them every product based on their fast-changing
behaviour. The technology allows the customers to collect the products from different places
without facing any difficulty. The customers most of the time focus on different markets for
collecting the products which is very challenging for increasing the number of loyal
customers. But by developing the relationship with the customers it can be possible to make
them satisfied to collect the products without analysing the market. For that reason,
organisations have to attain the trust of the customers by offering the best quality products
with the fastest delivery for a continuous time. it also needs to ensure the best services in the
competitive time and have to show proper respect toward their opinion and suggestions for
producing the plans for fulfilling their every requirement. All of these factors can be possible
by implementing the most effective customer retention strategies.

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 3. Methodology
3.1 Introduction
Research methodology is very important for any study to collect the data and include them
for producing the best outcomes. To make the study more attractive with accurate data the
researcher can use different types of models or frameworks by analysing the topic and
expected outcomes to meet the requirements of the situation. Most of the time the researcher
uses the Research Onion Model for developing the study with proper structure. The research
Onion Model developed by Saunders is very effective for conducting research in the
appropriate way to produce the best outcomes (Saunders et al., 2015).

Figure 2: Research Onion Model

Source: (Saunders et al., 2015)
The researcher used the pragmatism philosophy along with the deductive approach for
collecting the data from the primary source in the mixed method. For collecting the
quantitative data, the researcher used the survey strategy whereas the interview strategy
allowed the researcher to collect the qualitative data to produce the best solution in here. The
combination of statistical and thematic analysis techniques allowed the researcher to conduct
the study faster and effective way. The combination of snowball sampling and stratified
random sampling technique allowed the researcher to avoid any kind of complication here.

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 3.2 Philosophy
The researcher analysed different types of philosophies here to ensure the study developed in
the proper structure for obtaining every objective properly. By analysing all of them the
researcher used the pragmatism philosophy for making the study unique and effective. It was
the easiest process to describe the findings and report them with proper structure to avoid any
kind of difficulty throughout the study (Schostak, 2015). It allowed the researcher to avoid
the situation when they had the chance to produce unexpected results. It helped the researcher
generate the most updated and accurate data about Ryanair for implementing the best
strategies for customer retention and its impact on customer loyalty. The researcher was able
to design the study in the most effective way to ensure the best use of the primary data for
adopting the philosophy. It was very effective for concluding the study within the fixed time
frame and it was not required to carry extra cost more than the budget for concluding the
study properly.

3.3 Approach
The researcher was able to use different kinds of research approaches to conduct the study
properly. However, the deductive approach was the most effective and suitable process that
helped the researcher to include the most updated and valid information for producing the
best solution for every research issue. It helped the researcher to explore how the customer
retention rate can be possible to obtain by implementing different kinds of strategies. The
researcher was also able to explain the process of increasing customer loyalty to obtain the
most competitive advantages (Zikmund, Babin and Griffin, 2013). The deductive approach
was suitable for the study as it was developed based on the primary data. The deductive
approach allowed the researcher to collect the necessary data from the participants in the
most effective way. It was the major reason to get the acceptance from the participants for
getting the accurate data to produce the best solution for every research issue. The researcher
was able to conclude the study faster by including valid and relevant data.

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 3.4 Design
The researcher designed the study in the most effective way by ensuring the proper
interconnection of the findings. It was possible to adopt the descriptive design here which
increased the acceptance of the outcomes. The researcher was able to include all of the data
based on their importance and impact on producing the outcomes of the process to get the
most customer loyalty (Roberts and Perez, 2013). For adopting the case of Ryanair, it was
possible to collect the specific data for producing the best solution. The researcher was also
able to find accurate data easily for including the study to produce the most trusted outcomes.
the descriptive design allowed the researcher to include the combined data properly to make
it better understandable. It was also very effective in obtaining every research issue
successfully. The researcher was able to provide more concern toward the research objectives
along with the time plan for completing the whole study within the fixed time. For the reason
of the most structured process, the researcher was able to avoid any unnecessary and
irrelevant data in here to produce the most structured and effective outcomes. In the study, the
researcher tried to include all of the necessary data for producing the best solution to the
issues. For this reason, the researcher needed to conduct the study with mixed data to make
the outcomes more trusted (Wagner, Kawulich and Garner, 2012). Increasing customer
loyalty is very important for any business organisation and it can be possible to obtain
numerous ways.

The researcher used the case of Ryanair which used different strategies of customer retention
which allowed it to get the most customer engagement. By including the mixed data it was
possible to make the study more attractive with the inclusion of accurate data. The researcher
was able to include sufficient information in the numeric and no-numeric processes for every
research issue to produce the best solution. It was the most effective thing that the researcher
was able to avoid the data limitation for concluding the study in the most effective way and it
was possible to generate the best outcomes.

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 3.5 Method
In the study, the researcher tried to include all of the necessary data for producing the best
solution to the issues. For this reason, the researcher needed to conduct the study with mixed
data to make the outcomes more trusted. Increasing customer loyalty is very important for
any business organisation and it can be possible to obtain numerous ways (Peterson and Poli,
2014). The researcher used the case of Ryanair which used different strategies of customer
retention which allowed it to get the most customer engagement. By including the mixed
data, it was possible to make the study more attractive with the inclusion of accurate data.
The researcher was able to include sufficient information in the numeric and no-numeric
processes for every research issue to produce the best solution. It was the most effective thing
that the researcher was able to avoid the data limitation for concluding the study in the most
effective way and it was possible to generate the best outcomes.

3.6 Strategy
The researcher needed to fix the strategy by focusing on the data source to make it effective
and relevant. For collecting the data, the most effective process was the interview and survey
strategy where the researcher used the mixed strategy. For collecting the data in the survey
strategy, the researcher fixed 100 customers of Ryanair and asked them some relevant
questions. The researcher conducted the interview by including 5 employees of Ryanair who
were in managerial roles and other positions (Shrader-Frechette, 2013).

To collect accurate data the researcher provided more importance to the participants and
offered them the freedom to share their opinions accurately based on the question. By
adopting the mixed strategy, it was possible to avoid the fake and irrelevant information that
might increase the complication of concluding the study within the fixed time. Though it
looks like a complicated process the researcher was able to make it easier by convincing the
participants. To satisfy the concern of the participants the researcher sent an email to every
participant explaining the process in a simple way. For this reason, the participants were able
to participate in the survey and interview by taking sufficient preparation to provide the most
trusted information.

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 3.7 Data Source And Collection
The researcher used the primary data by analysing the importance of the study topic. It
allowed the researcher to collect updated information about Ryanair to show how it can be
possible to increase the rate of customer loyalty. The researcher decided to collect the primary
data to produce a big sample to include accurate data for every research issue to generate the
best solution here (Saunders et al., 2015). It was an easier and faster process to collect the
data from the primary source. At the same time, the researcher was able to ensure the
trustworthiness of every finding for generating the best solution. The researcher was able to
collect unique data in here to produce the most satisfactory outcomes to get the most
acceptance from the audiences. The researcher collected the data by producing the
questionnaire by including the necessary questions with proper flow. To avoid any
complications the researcher avoided including any unnecessary questions. As the researcher
needed to collect information about the process of implementing different customer retention
strategies and their impact on customer loyalty the researcher collected the data based on that.
It was very effective to get the most acceptance with the outcomes.

3.8 Data Analysis

The researcher adopted the mixed data analysis technique with a combination of statistical
and thematic analysis of the collected data. It allowed the researcher to analyse the data
deeply to avoid unnecessary data to increase trustworthiness and acceptance. It was also very
effective in making the study faster by including the data with accuracy and relevancy. The
researcher was able to produce the themes and graphs for developing the interconnection
between the findings to produce the best solution for every research issue (Shrader-Frechette,
2013). It was very effective to show how the customer retention strategy can help an
organisation to increase the rate of customer loyalty. For adopting the case of Ryanair, the
researcher was able to analyse the findings effectively to make the decision at the earliest for
inclusion in the study and all of the objectives were obtained within the fixed time.

21
 3.9 Sample Size
The researcher used the snowball sampling process here to collect the data in the appropriate
way. The snowball sampling allowed the researcher to produce a large sample to identify the
most updated and accurate data for including them in the study and it was possible to
generate the most credible outcomes (Schostak, 2015). The snowball sampling allowed the
researcher to collect the necessary information through a survey to gather information from
50 customers of Ryanair. The researcher implemented snowball sampling for collecting the
data through interviews from 5 staffs of Ryanair. This sample was very effective for
collecting the data to produce a big sample for generating the best outcomes here. It was also
very effective to avoid the complications with the less trusted and uncompleted data here. For
producing a sample, it was possible to make the study outcomes more effective and highly
acceptable to the audiences.

3.10 Ethical Considerations

The researcher provided more concern and importance toward the ethical guidance of the
university for ensuring the study was developed with proper structure. The researcher
collected the data from the primary source with the interview and survey strategy where there
needed to follow so many ethical factors for collecting the authentic data. The researcher
provided the freedom to the participants to express their opinions based on the question. Any
kind of financial inducement was avoided here and the participants did not face any
complication for providing any specific data. The researcher also ensured the confidentiality
of the personal information of the participants and their provided data. The data was stored in
a password-protected computer so that it could not be possible to collect by a third party.
After completing the study all of the data were deleted permanently.

22
 4. Findings and Analysis
4.1 Introduction
This study intended to evaluate the effect of customer retention strategies on the customer
loyalty of Ryanair from the assessment of customer information and the employees. The
consideration of customers’ information with the employees allowed the researcher to ensure
the better result production. The below mentioned result has been prepared –

4.2 Demographic Analysis

The demographic analysis has been prepared and shown below –

Table 1: Demographic Profile (Self Made)

Particulars Frequency
Male 29
Gender Female 21
Total 50
0-2 Years 12
3-4 Years 22
Purchasing Tenure 5-6 Years 10
Above 6 Years 6
Total 50

In this study, about 29 male and 21 female respondents participated where 12 respondents
had the service taking experience of 0-2 Years, 22 respondents had the service taking
experience of 3-4 Years, 10 respondents had the service taking experience of 5-6 Years and 6
respondents had the service taking experience of Above 6 Years.

23
 4.3 Findings
Ryanair used some traditional customer loyalty program along with its low-cost offerings to
increase the customer acceptance in the airline sector. The customers were provided with the
membership program with a very minimum monthly subscription. It was also found that the
customers were offered with a very minimum charge to increase their attachment with
Ryanair along with a long range of destination in different parts of Europe and other region.
The findings from the survey was prepared and attached in below –

4.3.1 Reducing Customer Acquisition Cost

The Reducing Customer Acquisition Cost was evaluated which showed the following results–

Red u ci n g C u sto mer A cq u i si ti o n C o st

49
28
25

25
24
22
15
11

1
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0

1 2 3 4 5 6 7
RC1 0 0 0 0 0 1 49
RC2 0 0 0 0 0 25 25
RC3 0 0 0 0 0 22 28
RC4 0 0 0 0 11 15 24

Figure 3: Reducing Customer Acquisition Cost

In the statement, RC1, “The customer retention strategies of Ryanair allow it to reduce the
cost of retaining customers”, about 1 agreed and 49 strongly agreed.

In the statement, RC2, “The satisfied customers from the customer retention strategies of
Ryanair are helping it to reduce the effort to enhance customer engagement”, about 25 agreed
and 25 strongly agreed.

In the statement, RC3, “The satisfied customers from the loyalty program spread positive
information to the potential customers which reduces the cost of acquiring new customers”,
about 22 agreed and 28 strongly agreed.

In the statement, RC4, “The higher competition from the other airline businesses is creating
challenges for Ryanair in maintaining the customer acquisition cost”, about 11 somewhat
agreed, 15 agreed and 24 strongly agreed.

24
The descriptive statistics was prepared showing the below mentioned result –

Table 2: Reducing Customer Acquisition Cost

Reducing Customer Acquisition Cost RC1 RC2 RC3 RC4
Mean 6.98 6.50 6.56 6.26
Mode 7 7 7 7
SD 0.14 0.51 0.50 0.80

In this assessment, the mean range was from 6.26 to 6.98 showing that the respondents had
similar perception regarding the Reducing Customer Acquisition Cost of Ryanair. The SD
range of .14 to .80 showed that there wasn’t much deviation in the responses provided by the
respondents.

4.3.2 Ensuring Continuous Improvement

The Ensuring Continuous Improvement was evaluated which showed the following results –

E nsur i ng C onti nuous Im pr ove m e nt 34

33
29
27
16
16
15

12
7

6
4
1
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

1 2 3 4 5 6 7
EC1 0 0 0 0 4 12 34
EC2 0 0 0 0 7 16 27
EC3 0 0 0 0 1 16 33
EC4 0 0 0 0 15 6 29

Figure 4: Ensuring Continuous Improvement

In the statement, EC1, “Ryanair focuses on continuous improvement of its customer service
from retention strategies to improving the customer experience”, about 4 somewhat agreed,
12 agreed and 34 strongly agreed.

In the statement, EC2, “Ryanair focuses on enhancing the customer's positive experience
from the service through continuous improvement in its practices”, about 7 somewhat agreed,
16 agreed and 27 strongly agreed.

25
In the statement, EC3, “The focus on cost minimisation along with better customer service
enhances its improvement in customer commitment”, about 1 somewhat agreed, 16 agreed
and 33 strongly agreed.

In the statement, EC4, “Ryanair is finding it challenging to improve the customer satisfaction
and loyalty in it”, about 15 somewhat agreed, 6 agreed and 29 strongly agreed.

The descriptive statistics was prepared showing the below mentioned result –

Table 3: Ensuring Continuous Improvement

Ensuring Continuous Improvement EC1 EC2 EC3 EC4
Mean 6.60 6.40 6.64 6.28
Mode 7 7 7 7
SD 0.64 0.73 0.53 0.90

In this assessment, the mean range was from 6.28 to 6.64 showing that the respondents had
similar perception regarding the Ensuring Continuous Improvement of Ryanair. The SD range
of .53 to .90 showed that there wasn’t much deviation in the responses provided by the
respondents.

4.3.3 Ensuring Strong Online Presence

The Ensuring Strong Online Presence was evaluated which showed the following results –

Ensur ing S tr ong O nline P r esence

40
27
24

24
23
20

19
11
8
2

2
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

1 2 3 4 5 6 7
ES1 0 0 0 0 8 2 40
ES2 0 0 0 0 2 24 24
ES3 0 0 0 0 0 23 27
ES4 0 0 0 0 11 20 19

Figure 5: Ensuring Strong Online Presence

In the statement, ES1, “Ryanair developed a strong online presence through its customer
retention strategy”, about 8 somewhat agreed, 2 agreed and 40 strongly agreed.

26
In the statement, ES2, “The customers are accepting the service provided by Ryanair through
its strong online presence in increasing customer retention”, about 2 somewhat agreed, 24
agreed and 24 strongly agreed.

In the statement, ES3, “The customers are highly satisfied with the online presence and the
customer-centric offering by Ryanair”, about 23 agreed and 27 strongly agreed.

In the statement, ES4, “Ryanair is facing challenges in ensuring the maximum online
presence to its potential customers to improve their retention”, about 11 somewhat agreed, 20
agreed and 19 strongly agreed.

The descriptive statistics was prepared showing the below mentioned result –

Table 4: Ensuring Strong Online Presence

Ensuring Strong Online Presence ES1 ES2 ES3 ES4
Mean 6.64 6.44 6.54 6.16
Mode 7 6 7 6
SD 0.75 0.58 0.50 0.77

In this assessment, the mean range was from 6.16 to 6.64 showing that the respondents had
similar perception regarding the Ensuring Strong Online Presence of Ryanair. The SD range
of .50 to .77 showed that there wasn’t much deviation in the responses provided by the
respondents.

4.3.4 Improving Customer Experience

The Improving Customer Experience was evaluated which showed the following results –

I mpr ov ing Customer Exper ience

33
30
25
22

22
20
19
12
9
5
3
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

1 2 3 4 5 6 7
IC1 0 0 0 0 5 12 33
IC2 0 0 0 0 3 25 22
IC3 0 0 0 0 0 30 20
IC4 0 0 0 0 9 22 19

Figure 6: Improving Customer Experience

27
In the statement, IC1, “The customer retention programs are increasing the customers’
positive experience within Ryanair”, about 5 somewhat agreed, 12 agreed and 33 strongly
agreed.

In the statement, IC2, “The continuous focus on customer satisfaction helps in increasing the
customer experience continuously”, about 3 somewhat agreed, 25 agreed and 22 strongly
agreed.

In the statement, IC3, “Ryanair has strong customer acceptance and loyalty in the airline
sector”, about 30 agreed and 20 strongly agreed.

In the statement, IC4, “Ryanair is facing challenges in improving the customer experience to
improve their retention”, about 9 somewhat agreed, 22 agreed and 19 strongly agreed.

The descriptive statistics was prepared showing the below mentioned result –

Table 5: Improving Customer Experience

Improving Customer Experience IC1 IC2 IC3 IC4
Mean 6.56 6.38 6.40 6.20
Mode 7 6 6 6
SD 0.67 0.60 0.49 0.73
In this assessment, the mean range was from 6.20 to 6.56 showing that the respondents had
similar perception regarding the Improving Customer Experience of Ryanair. The SD range
of .49 to .73 showed that there wasn’t much deviation in the responses provided by the
respondents.

4.3.5 Customer Loyalty

The Customer Loyalty was evaluated which showed the following results –

C ustom e r L oya l ty
47
26

26
24

24
23
14
12
2
1

1
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

1 2 3 4 5 6 7
CL1 0 0 0 0 2 1 47
CL2 0 0 0 0 1 26 23
CL3 0 0 0 0 0 24 26
CL4 0 0 0 0 12 14 24

28
 Figure 7: Customer Loyalty
In the statement, CL1, “The customer retention strategy is reducing the customer acquisition
cost for Ryanair to improve their loyalty”, about 2 somewhat agreed, 1 agreed and 47
strongly agreed.

In the statement, CL2, “The customer retention strategy is increasing the continuous
improvement in customer service for Ryanair to improve their loyalty”, about 1 somewhat
agreed, 26 agreed and 23 strongly agreed.

In the statement, CL3, “The customer retention strategy is ensuring an online presence for
Ryanair to improve its loyalty”, about 24 agreed and 26 strongly agreed.

In the statement, CL4, “The customer retention strategy is improving the customer experience
for Ryanair to improve their loyalty”, about 12 somewhat agreed, 14 agreed and 24 strongly
agreed.

The descriptive statistics was prepared showing the below mentioned result –

Customer Loyalty CL1 CL2 CL3 CL4

Mean 6.90 6.44 6.52 6.24
Mode 7 6 7 7
SD 0.42 0.54 0.50 0.82

In this assessment, the mean range was from 6.24 to 6.90 showing that the respondents had
similar perception regarding the Customer Loyalty of Ryanair. The SD range of .42 to .82
showed that there wasn’t much deviation in the responses provided by the respondents.

29
 4.3.6 Correlation Analysis
The correlation analysis was conducted to evaluate the relationship between the customer
retention strategy and the customer loyalty within Ryanair. The following results were
generated –

Table 6: Correlation Analysis

Reducing Ensuring Ensuring Improving Custome
Customer Continuous Strong Customer r Loyalty
Acquisitio Improvemen Online Experienc
n Cost t Presence e
Reducing Customer 1
Acquisition Cost
Ensuring Continuous 0.932907 1
Improvement
Ensuring Strong Online 0.758803 0.906734 1
Presence
Improving Customer 0.55418 0.751966 0.950023 1
Experience
Customer Loyalty 0.177658 0.40842 0.718738 0.859899 1
This analysis showed that the improved customer experience from the retention strategies had
the highest correlation with the customer loyalty within Ryanair with about 0.859899
correlation. Ensuring Strong Online Presence had the second highest correlation with
0.718738 correlation with the customers loyalty within Ryanair. Ensuring Continuous
Improvement had about 0.40842 and Reducing Customer Acquisition Cost had about
0.177658 correlation within Ryanair showing a level of improvement in it.

30
 4.3.7 Regression Statistics
The regression analysis was made showing the below mentioned statistics –

Table 7: Regression Statistics

Multiple R 0.595801751
R Square 0.354979726
Adjusted R Square 0.341541804
Standard Error 0.450532815
Observations 50

In this assessment, the Multiple R was 0.595801751 showing that the regression model was
60% accurate to define the relationship between the customer retention strategy and the
customer loyalty within Ryanair. The R Square of 0.354979726 showed that the dependent
variable was 36% dependent on the independent variable. The Adjusted R Square of
0.341541804 showed that a change in the independent variable would bring about a 34% in
the customer loyalty within Ryanair.

4.4 Interview Findings

The researcher gathered information from 5 employees working within Ryanair using the
snowball sampling practice. 5 male employees were selected to take part in the assessment
where 3 worked for 0-2 years and the rest worked for 5-6 years within Ryanair.

In the question, what factor affect your customer loyalty from the customer retention
strategy? the first employee mentioned about low cot service to the customers were the key
factor affecting the customer loyalty. The second respondent also stick to the same response
regarding the cost of service of Ryanair. The third respondent focused on the diversified
location of service which affected the customer loyalty. The fourth and fifth respondents
mentioned about the low cost and the broader range of location affected their customer
loyalty.

In the question, do you think that your customers are satisfied enough with your customer
retention strategy? The first employee was confident that the customers were satisfied. The
second employees were also strongly believed that the customers were satisfied with the
customer retention strategy. The third employee mentioned that the customer retention
strategy could be improved through increasing the facilities. The fourth employees were

31
somewhat confident about the customer loyalty and the fifth employee mentioned about the
customer satisfaction from the customer retention strategy within Ryanair.

In the question, do you think that there is any scope of improvement in the customer
retention strategy of Ryanair in increasing your customer loyalty? The first employee found
some scope of improvement in the amenities provided to the customers to improve their
loyalty. The second employees also agreed regarding the amenities provided to the customers
to increase their loyalty and the likelihood to increase their attachment with the operation.
The third respondent mentioned that the customer loyalty was very good where the
compliance with the current satisfaction level was the primary recommendations. The fourth
and fifth respondents focused on the improvement of the amenities with the existing price to
increase the customers’ positive response and loyalty within Ryanair.

4.5 Discussion on Findings

32
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35
 2. Appendices
2.1 Survey Form

Serial number:

Research Title: Analysing Customer Retention Strategies and Their Impact on Customer
Loyalty: A Study on Ryanair.

Dear respondents,

This study is being carried out for academic purposes with the sole aim of analysing customer
retention strategies and their impact on customer loyalty in the airline sector of the UK. The
survey strategy has been adopted to collect primary data for the research. Your genuine
response will be highly appreciated. You can rest assured that your personal information will
be kept confidential.

Thank you

2.2 Survey Profile

1. Your Gender-
 Male
 Female

2. Years of purchasing from Ryanair?

 0-2 Years
 3-4 Years
 5-6 Years
 Above 6 Years

36
 2.3 Survey Socio-Demographic Profile
1. Your Gender-
 Male
 Female

2. Years of purchasing from Ryanair?

 0-2 Years
 3-4 Years
 5-6 Years
 Above 6 Years

2.4 Survey Questionnaire

Strongly Disagree Somewhat Neutral Somewhat Agree Strongly
Disagree Disagree Agree Agree

1 2 3 4 5 6 7

Codes Questions 1 2 3 4 5 6 7

Section 1: Reducing Customer Acquisition Cost

The customer retention strategies of 1 2 3 4 5 6 7

Ryanair allow it to reduce the cost of
RC1

retaining customers

The satisfied customers from the customer 1 2 3 4 5 6 7

retention strategies of Ryanair are helping
RC2

it to reduce the effort to enhance customer

engagement

The satisfied customers from the loyalty 1 2 3 4 5 6 7

program spread positive information to the
RC3

potential customers which reduces the cost

of acquiring new customers

37
 The higher competition from the other 1 2 3 4 5 6 7

RC4 airline businesses is creating challenges for

Ryanair in maintaining the customer
acquisition cost

Section 2: Ensuring Continuous Improvement

Ryanair focuses on continuous 1 2 3 4 5 6 7

improvement of its customer service from
EC1

retention strategies to improving the

customer experience

Ryanair focuses on enhancing the 1 2 3 4 5 6 7

customer's positive experience from the
EC2

service through continuous improvement in

its practices

The focus on cost minimisation along with 1 2 3 4 5 6 7

better customer service enhances its
EC3

improvement in customer commitment

Ryanair is finding it challenging to 1 2 3 4 5 6 7

improve the customer satisfaction and
EC4

loyalty in it

Section 3: Ensuring Strong Online Presence

Ryanair developed a strong online 1 2 3 4 5 6 7

presence through its customer retention
ES1

strategy

The customers are accepting the service 1 2 3 4 5 6 7

provided by Ryanair through its strong
ES2

online presence in increasing customer

retention

38
 The customers are highly satisfied with the 1 2 3 4 5 6 7

ES3 online presence and the customer-centric

offering by Ryanair

Ryanair is facing challenges in ensuring 1 2 3 4 5 6 7

the maximum online presence to its
ES4

potential customers to improve their

retention

Section 4: Improving Customer Experience

The customer retention programs are 1 2 3 4 5 6 7

increasing the customers’ positive
IC1

experience within Ryanair

The continuous focus on customer 1 2 3 4 5 6 7

satisfaction helps in increasing the
IC2

customer experience continuously

Ryanair has strong customer acceptance 1 2 3 4 5 6 7

IC3

and loyalty in the airline sector

Ryanair is facing challenges in improving 1 2 3 4 5 6 7

the customer experience to improve their
IC4

retention

Section 5: Customer Loyalty

The customer retention strategy is reducing 1 2 3 4 5 6 7

the customer acquisition cost for Ryanair
CL1

to improve their loyalty

The customer retention strategy is 1 2 3 4 5 6 7

increasing the continuous improvement in
CL2

customer service for Ryanair to improve

their loyalty

39
 The customer retention strategy is ensuring 1 2 3 4 5 6 7

CL3 an online presence for Ryanair to improve

its loyalty

The customer retention strategy is 1 2 3 4 5 6 7

improving the customer experience for
CL4

Ryanair to improve their loyalty

40
 2.5 Interview Profile
1. Your Gender-
 Male
 Female

2. Years of Working in Ryanair?

 0-2 Years
 3-4 Years
 5-6 Years
 Above 6 Years

2.6 Interview Questionnaire

 What factor affect your customer loyalty from the customer retention strategy?
 Do you think that your customers are satisfied enough with your customer retention
strategy?
 Do you think that there is any scope of improvement in the customer retention
strategy of Ryanair in increasing your customer loyalty?

41