Enhancing Customer Retention in the Mobile Industry: A Problem-Solving Approach
Keywords:
Customer Retention, Disruptive EventsAbstract
This paper addresses the challenge of enhancing customer retention in the mobile industry within a problem-solving approach. It recommends a shift from expensive acquisition-focused marketing to a more cost-effective customer retention approach. A web-administered survey of mobile user behavior is deployed to assess the impact of various disruptive events on customer retention. Within Binary Logistic Regression analysis, this study isolates, in hierarchical order, the key variables affecting customer retention as the type of service problem, the communication channel for lodging complaints, the frequency of issues, and the level of trust as the main variables that mostly affect retention. Moreover, the study introduces the Net Problem Score (NPS) metric as a proactive regaining to foster recovery strategies and deflect potential customer desertion, especially among high-value customers, before the damaging aftermaths of social media usage. Further managerial implications are discussed to enhance employee’s relational problem-solving skills and techniques.
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