Model Of Customer Retention Research Articles

Determinants of Insurance Awareness and Perceived Value and Their Impact on Unit Linked Insurance Customer Retention With The COVID-19 Pandemic as Moderator

Purpose – During the covid 19 pandemic life insurance companies faced matter of concerning to extension of customers of unit linked insurance policies. Unit-linked life insurance product has become a major contributor to the company's profits. This study aims to investigate the factors that influence insurance awareness and perceived value and their impact on customer retention with the covid 19 pandemic as a moderator.
 Design/methodology/approach – This study conducted an online survey and total of 230 completed questionnaires were collected from customers in Jakarta. The data was analyzed using SmartPLS software.
 Findings – Results indicate that insurance awareness, perceived value, and covid 19 pandemic significantly influence customer retention. Insurance agents, psychological factors and financial literacy significantly influence insurance awareness. E-service quality significantly affects perceived value. The interaction between the covid 19 pandemic and insurance awareness and the interaction between the covid 19 pandemic and perceived value did not significantly affect customer retention.
 Originality/value – The study contributes to the marketing literature by proposing a conceptual model: the life insurance customer retention model. The findings offer practical guidance to life insurance companies to keep the customer loyalty.

Bank Marketing and Its Effects on Customer Retention in Microfinance in Yaounde, Cameroon

This study seeks to assess bank marketing and its impact on customer retention in microfinance in Yaoundé, Cameroon. A cross-sectional research design consisting of 348 clients of category two microfinances were sampled from the center region of Cameroon. Data for the study was sourced using closed structured questionnaires. The analysis was concluded using statistical software’s such as Statistical Package for Social Sciences (SPSS 24) and Analysis of Moment Structures (AMOS24). The results from the analysis reveal that Customer service and retention have a significant positive impact on customer retention. The study therefore concluded that emphasis on better customer services leads to a high customer retention rate in category two microfinances in Yaounde, Cameroon. A new model called Bank Marketing and Customer retention Model (BMCR Model) was developed to test the relationship amongst variables. This study contributes to the limited theoretical and empirical evidence of the impact of bank marketing on customer retention in microfinances in Yaounde, Cameroon.

Development of the Digital Banking Customer Retention Model (DBCRM) through the Evaluation of Service Dimensions: The Case Study of Lloyds Bank, United Kingdom

Technology is a change agent in the banking industry in order to transition conventional banking towards digital banking. To be successful in digital banking, both positive and negative effects need to be studied. Furthermore,significant dimensions need to be identified to provide better digital services and to retain customers. Nine digital banking effects: accessibility, usefulness, ease of use, availability, efficiency & effectiveness, reliability, responsiveness, cost effectiveness and security have been discussed fromthe customer satisfaction, loyalty and retention perspectivesby reviewing the existing literatures. To collect the data, to apply and test how these service dimensions, particularly, impact customer retention, customers of Lloyds bankplc in the United Kingdom have been selected. Data analysis using Binary Logistic Regression has resultedkey factors:less cost-effectiveness, less availability, less accessibility and less securitywhich impact customer switching intention in Lloyd’s bank. Therefore, Digital Banking Customer Retention Model (DBCRM) was introduced with the appropriate recommendations to enhance the customer retention.

Consumer Behavior and Image Analysis: A Student Customer Retention Model

Consumer Behavior and Image Analysis: A Student Customer Retention Model

Predicting Customer Retention using XGBoost and Balancing Methods

Customer retention is considered as one of the important concerns for many companies and financial institutions like banks, telecommunication service providers, investment ser-vices, insurance and retail sectors. Recent marketing indicators and metrics show that attracting and gaining new customers or subscribers is much more expensive and difficult than retaining existing ones. Therefore, losing a customer or a subscriber will negatively impact the growth and the profitability if the company. In this work, we propose a customer retention model based on one of the most powerful machine learning classifiers which is XGBoost. The latter classifier is experimented when combined wit different oversampling methods to improve its performance in the used imbalanced dataset. The experimental results show very promising results compared to other well-known classifiers.

Customer retention to mobile telecommunication service providers: the roles of perceived justice and customer loyalty program

In the past decade, the competition has increased in mobile telecommunication services; moreover, a stagnating rate of diffusion suggests that the market may have reached maturity. Thus, customer loyalty has become an important area of research in the mobile telecommunication sector. The goal of this current study is to offer and test a theoretical model of customer retention in the mobile telecommunication context. To test the theoretical model, a self-administrated questionnaire was developed and tested on a sample of 400 customers. The results show that greater levels of satisfaction toward loyalty program lead to greater customer retention. The satisfaction of loyalty program positively impacts customer relationship satisfaction. The mediating effect of relationship satisfaction is supported. Since the majority of research on perceived justice focused on service recovery and complaint outcomes, this framework provides empirical evidence on the direct and indirect effect of procedural, distributive and interactional perceived justice regarding loyalty programs as antecedents of relational satisfaction loyalty/commitment and retention from a consumer's perspective.

Customer Retention to Mobile Telecommunication Service Providers: The Roles of Perceived Justice and Customer Loyalty Program

In the past decade, the competition has increased in mobile telecommunication services; moreover, a stagnating rate of diffusion suggests that the market may have reached maturity. Thus, customer loyalty has become an important area of research in the mobile telecommunication sector. The goal of this current study is to offer and test a theoretical model of customer retention in the mobile telecommunication context. To test the theoretical model, a self-administrated questionnaire was developed and tested on a sample of 400 customers. The results show that greater levels of satisfaction toward loyalty program lead to greater customer retention. The satisfaction of loyalty program positively impacts customer relationship satisfaction. The mediating effect of relationship satisfaction is supported. Since the majority of research on perceived justice focused on service recovery and complaint outcomes, this framework provides empirical evidence on the direct and indirect effect of procedural, distributive and interactional perceived justice regarding loyalty programs as antecedents of relational satisfaction loyalty/commitment and retention from a consumer's perspective.

The Tenure-Based Customer Retention Model: A Cross-Cultural Validation

International businesses and their marketing managers face complexity in the targeting of different customer groups in multiple countries, with different purchase histories and brand relationship tenures. Thus far, no customer retention model has been suggested to sufficiently reduce such complexity. To fill the gap, this study distinguishes three global customer groups—brand stayers, brand switchers, and category novices—which are differently prevalent in countries of various economic development. In particular, category novices have been a largely neglected segment for emerging markets. The study introduces the tenure-based customer retention model, which proposes the idiosyncratic effects of each group on the basis of tenure-based and attitudinal repurchase drivers. A large-scale consumer study (N = 53,744; 30 countries) cross-culturally validates the suggested model and reflects country-specific factors based on cultural dimensions instead of economic development. The findings broadly support the standardization of international marketing over different countries but not across different buyer segments. Consequently, the study offers insights into the communicative measures that can be used to globally address repurchase intent for each segment.

The effects of distributive, procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia

The framework offered in this study provides empirical evidence concerning the interaction between distributive, procedural and interactional perceived justice and loyalty program satisfaction on relational satisfaction in the mobile telecommunication context. Firms that rely on justice perception for strategy implementation are able to attain customer retention. This study suggests a theoretical model of customer retention that aims at investigating the role of satisfaction with loyalty program on relationship marketing. The structural equation modeling was used to test the hypothetical relationships. A self-administrated questionnaire was distributed to a total of a convenience sample of 520 customers of multiple mobile phone companies. The target population includes customers who have subscribed to a loyalty program. Results show that distributive justice moderates the relationship between satisfaction with the loyalty program and relational satisfaction. The results highlight the need to focus on distributive justice in order to nurture satisfaction and loyalty. Satisfaction with the loyalty program is a key predictor of a satisfactory relationship with the operator and customer retention.

Factors Influencing Customer Retention: Case Study of Lithuanian Mobile Operators

Factors influencing customer retention are important in the study of consumer relationship conception witch has implications for organizational business strategy and regulatory policies. Much research has already examined the consumers’ repeated purchase intentions, however there is no united point of view concerning the factors conditioning customer retention, and means of its assessment and determination. The aim of the paper - to create a theoretical model of customer retention and to prove it in Lithuania Mobile Operators practice. The empirical research results showed that there is a statistically significant positive correlation between factors identified in the theoretical model: customer satisfaction, relationship quality, switching costs and customer retention

A Structural Relationship Between Domestic Tourist Satisfaction, Trust, Switching Barriers And Retention

The objective of this study is to examine the direct effects of satisfaction, trust, and switching barriers on customer retention in Bangkok and Pattaya, Chonburi province. Four hundred and forty questionnaires were distributed as the means of data collection and analyzed using structural equation modeling (SEM). The results of testing hypotheses are as follows: The developed structural equation model of customer retention in Bangkok was congruent with empirical data as the criterion, as follows: (?2 = 141.098, df = 69, ?2/df = 2.045, GFI = .956, AGFI = .933, RMSEA = .049, RMR = .073, CFI = .979). Factors influencing customer retention in Bangkok included the following: a) satisfaction showed the highest level of direct influence = .225 and b) switching barriers with direct influence = .193, followed by trust = .188 with statistical significance at the .001 level.The developed structural equation model of customer retention in Pattaya was congruent with empirical data as the criterion, as follows: (?2 = 95.438, df = 49, ?2/df = 1.948, GFI = .966, AGFI = .945, RMSEA = .046, RMR = .077, CFI = .982). Factors influencing customer retention in Pattaya included the following: a) switching barriers showed the highest level of direct influence = .251 and b) trust with direct influence = .240, followed by satisfaction = .159 with statistical significance at the .001 level.

A Customer Retention Model using Balance Score Card for Small and Medium Enterprises in the Hospitality Industry

This paper is an attempt to bring out the relevance of customer retention for small and medium enterprises (SME) in the highly competitive hospitality industry. Customer retention is one of the critical goals of an organization as part of the Customer Relationship Management initiatives. Identifying customer touch points and positioning the services accordingly will have long lasting happy memories of experience from the customer. In this paper we have taken two case studies, one a SME Hotel with dining facility and another SME restaurant to model a key customer centric process and identified the touch points for customer service which impacts customer retention. This paper also applied the four perspectives of the balance scorecard (BSC) and identified the critical success factors in each perspective to model the process from the view point of customer retention.

How to Retain a Bank Customer: A Qualitative Study of Jordanian Banks Relational Strategies

This paper studies how banks in Jordan promote long-term strategies in an effort to attract and retain loyal customers. An exploratory qualitative study was undertaken in order to develop a clearer understanding of background issues relating to the research problem. An in-depth interviewing technique was used, experts from nine different Jordanian banks participated in the data collection, the interviewees consisted of marketing directors, managers and executives as well as senior relationship managers and direct banking managers. Content analysis was used to analyze textual information from interviews in order to draw conclusions from them. Findings revealed Relational strategies, tactics, and tools used to achieve customer retention used by banks and benefits of customer retention, it also showed how retention is linked with customer profitability, findings showed that internal marketing is important for achieving retention. A number of drivers were found to be critical in banks efforts toward fulfilling relational strategies; trust, satisfaction, loyalty, commitment, closeness, communication, transparency, confidentiality, privacy, culture, customer acquisition, and reputation. However this study should be carried out in a different context. Further study is needed to explain how these constructs are linked in order to develop a model of customer retention.

A Dynamic Model of Customer Retention in Mass Customization Services

The customization in the MC is driven by the customer, so customer retention to a large extent influent the effective implementation of mass customization. Combining the dynamic customer relationship management and the three stages of customer consumption emotional and customer loyalty, the anthors build three-dimensional structure model. The paper studies the dynamic model of customer retention under the mass customization services, meanwhile, the paper analyzes the different characteristics and influence factor of customer loyalty and customer consumption emotion at various stages of CRM.

A Business Marketing Strategy Applied to Student Retention: A Higher Education Initiative

Relationship marketing, a concept that focuses on attracting, maintaining, and building business relationships, has enhanced the profitability of businesses. The core of the relationship marketing approach in business is that resources are directed toward strengthening ties to existing customers on the proven premise that maintaining existing customers is less costly than is attracting new ones. Relationship marketing models have been developed in a wide range of settings and evidence exists suggesting that it is a successful approach. This article explores the concept of adapting the business relationship marketing framework to the challenges of college student retention. The student retention and relationships marketing literatures are reviewed and parallels are drawn. The relationship marketing model presents a different way of viewing student retention, provides a different perspective on retention strategies, and provides an economic justification for implementing retention programs. Retaining students in post secondary programs has been a national concern for decades (Braxton, 2000). However, doing so remains a challenge (Habley & McClanahan, 2004; Maldonado, Rhoads, & Buenavista, 2005). Improving student retention is a worthwhile goal for a variety of individual, social, and economic reasons (Institute for Higher Education Policy, 2005; Schuh, 2005; Tinto, 1993). And, while not everyone will be comfortable applying concepts from business to an issue in education, adapting the customer retention model to student retention is appropriate given the emphasis both place on quality of services. We include a formula for determining the economic benefits to the institution of retaining students.

Two-level model of customer retention in the US mobile telecommunications service market

The unprecedented growth of competition in the wireless telecommunications market has raised the importance of retaining current customers. Retaining existing customers is much less expensive and difficult than recruiting new customers in a mature market such as the US wireless communications industry. In addition to the reduced cost, there is the potential and opportunity value of customers gained over a long period of time. Because wireless service is not a one-time sale like commodity products but rather, a continuous service, service providers can offer additional services over the length of a customer's tenure to generate more revenue. This study focuses on understanding the factors related to customer retention behavior, both behavioral factors such as switching costs and customer satisfaction and demographic factors. Its two goals are to understand (1) how factors that affect switching costs and customer satisfaction, such as length of association, service plan complexity, handset sophistication and the quality of connectivity, drive customer retention behavior, and (2) how customer demographics such as age and gender affect their choice of service plan complexity and handset sophistication, leading to differences in customer retention behavior. The methodologies used were a binary logistic regression model and a two-level hierarchical linear model.

A model of customer retention of dissatisfied business services customers

PurposeThe purpose of this paper is to present a theoretical framework of the factors that potentially influence dissatisfied customers to continue purchasing from their existing service provider in the business‐to‐business (B2B) services sector.Design/methodology/approachThis review paper synthesises the findings from previous studies on switching barriers, and relationship variables, dependence, and calculative commitment.FindingsFive major factors deter customers from switching to an alternative service provider: switching costs; interpersonal relationships; the attractiveness of alternatives; service recovery; and inertia. These factors are mediated by dependence and calculative commitment.Originality/valueThis is the first comprehensive study of the factors that potentially influence dissatisfied customers to remain behaviourally loyal to a service provider in the B2B services sector. This important study has significance for marketers in developing strategies for customer retention and service recovery.

A contingency model of behavioural intentions in a services context

Numerous studies have shown customer satisfaction to be the crucial antecedent of perhaps the most important constructs in marketing – loyalty and customer retention. However the satisfaction→customer retention linkage is not as simple as it might first seem. This study examines the impact of switching barriers as potential moderators of the satisfaction→customer retention linkage. The results show that across each industry studied, the satisfaction→repeat purchase link is stronger under conditions of low switching barriers, and weaker when switching barriers are perceived to be higher, thus supporting a contingency model of customer retention.

Some moderating effects on the service quality‐customer retention link

This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large‐scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.

Trust, involvement profile and customer retention - modelling, effects and implications

This study proposes and tests a structural model of customer retention. It measures the effects of trust and involvement on customer retention assuming general customer satisfaction. The model is tested in an empirical study in the context of an existing long-term customer relationship. As expected, customer satisfaction is not a construct on its own but is combined with retention. Trust serves as a strong trigger for enhancing customer retention. Involvement is revealed to play a prominent role in explaining both trust creation and customer retention. Applying the scale of Jain and Srinivasan, effects of different involvement profiles are analysed. Based on a discussion of the conceptual framework and an empirical proof of its operationalisation, five different dimensions of involvement are distinguished. Trust creation is primarily triggered by affective components of involvement, whereas the cognitive components show distinct effects. Further differences between the individual dimensions of involvement are revealed, in accordance with theoretical considerations. We conclude that relational customer retention, where trust is a major constituent element, is differently supported by affective and cognitive involvement. Consequently, the focus of innovation and new product management should shift from the mere design of new physical properties towards a broader, proactive perspective of shaping both consumer involvement and long-term retention.