Match!

Regaining “Lost” Customers: The Predictive Power of First-Lifetime Behavior, the Reason for Defection, and the Nature of the Win-Back Offer

Published on Jul 1, 2015in Journal of Marketing7.82
· DOI :10.1509/jm.14.0107
V. Kumar8
Estimated H-index: 8
(J. Mack Robinson College of Business),
Yashoda Bhagwat3
Estimated H-index: 3
(J. Mack Robinson College of Business),
Xi (Alan) Zhang3
Estimated H-index: 3
(J. Mack Robinson College of Business)
Abstract
Service firms, which have high attrition rates, are finding it exceedingly difficult to grow their customer base. Despite their extensive retention efforts, customers still defect. For these firms, “lost” customers may pose a rewarding “last-resort” opportunity. Reacquiring customers who left the firm may help these firms not only regain their lost profits but also usurp profits from competitors. However, some pertinent questions remain as to whether lost customers are worth the investment in reacquisition and whether they will remain profitable if reacquired. This is the first study to empirically demonstrate how (1) the lost customers' first-lifetime experiences and behaviors, (2) the reason for defection, and (3) the nature of the win-back offer made to lost customers are all related to the likelihood of their reacquisition, their second-lifetime duration, and their second-lifetime profitability per month. The study shows that the stronger the first-lifetime relationship with the firm, the more likely ...
  • References (46)
  • Citations (35)
References46
Newest
#1George Knox (Tilburg University)H-Index: 8
#2Rutger van Oest (BI Norwegian Business School)H-Index: 9
48 CitationsSource
#1V. Kumar (J. Mack Robinson College of Business)H-Index: 57
#2Xi (Alan) Zhang (J. Mack Robinson College of Business)H-Index: 3
Last.Anita Luo (J. Mack Robinson College of Business)H-Index: 2
view all 3 authors...
44 CitationsSource
#1Svetlana Bogomolova (UniSA: University of South Australia)H-Index: 11
#2Jenni Romaniuk (UniSA: University of South Australia)H-Index: 22
14 CitationsSource
#1Svetlana Bogomolova (UniSA: University of South Australia)H-Index: 11
23 CitationsSource
#1Jenny van Doorn (UG: University of Groningen)H-Index: 17
#2Peter C. Verhoef (UG: University of Groningen)H-Index: 48
116 CitationsSource
#1Christian Homburg (UMA: University of Mannheim)H-Index: 65
#2Wayne D. Hoyer (University of Texas at Austin)H-Index: 43
Last.Ruth Stock-HomburgH-Index: 24
view all 3 authors...
65 CitationsSource
173 Citations
#1Christian Homburg (UMA: University of Mannheim)H-Index: 65
#2Wayne D. Hoyer (University of Texas at Austin)H-Index: 43
Last.Ruth Stock-Homburg (Technische Universität Darmstadt)H-Index: 24
view all 3 authors...
47 CitationsSource
#1Mert Tokman (JMU: James Madison University)H-Index: 12
#2Lenita Davis (UA: University of Alabama)H-Index: 13
Last.Katherine N. Lemon (BC: Boston College)H-Index: 28
view all 3 authors...
102 CitationsSource
#1Ruth N. Bolton (ASU: Arizona State University)H-Index: 38
#2Katherine N. Lemon (BC: Boston College)H-Index: 28
Last.Matthew D. Bramlett (National Center for Health Statistics)H-Index: 10
view all 3 authors...
102 CitationsSource
Cited By35
Newest
#1Dan Huang (Griffith University)
#2Alexandra Coghlan (Griffith University)H-Index: 18
Last.Xin Jin (Griffith University)
view all 3 authors...
Source
Source
Source
#1Young D. Kwon (HKUST: Hong Kong University of Science and Technology)
#2Dimitris Chatzopoulos (HKUST: Hong Kong University of Science and Technology)H-Index: 10
Last.Pan Hui (UH: University of Helsinki)H-Index: 45
view all 5 authors...
Source
Source
Source
#1Alexander Toet (TNO: Netherlands Organisation for Applied Scientific Research)H-Index: 29
#2M.G. Van SchaikH-Index: 1
Last.Johannes Bernardus Fransiscus van Erp (TNO: Netherlands Organisation for Applied Scientific Research)H-Index: 7
view all 4 authors...
1 CitationsSource
#1Andrea Dechant (LMU: Ludwig Maximilian University of Munich)H-Index: 1
#2Martin Spann (LMU: Ludwig Maximilian University of Munich)H-Index: 22
Last.Jan U. Becker (Kühne Logistics University)H-Index: 8
view all 3 authors...
2 CitationsSource
#1Chang Hee Park (SUNY: State University of New York System)H-Index: 1
#2Young-Hoon Park (Cornell University)H-Index: 13
Last.David A. Schweidel (Georgetown University)H-Index: 13
view all 3 authors...
2 CitationsSource
#1Venkat Ramaswamy (UM: University of Michigan)H-Index: 10
#2Kerimcan Ozcan (Marywood University)H-Index: 5
9 CitationsSource