Customer engagement: Redefining win-back success beyond purchases

Ruhnau, Robin-Christopher

Document Type: Conference presentation
Year of publication: 2020
Conference title: AMA Summer Academic Conference 2020
Location of the conference venue: Online
Date of the conference: 18.-20.08.2020
Publication language: English
Institution: Business School > Business-to-Business Marketing, Sales & Pricing (Homburg 1998-)
Subject: 650 Management
Keywords (English): CEV , Customer Engagement , Customer Win-Back
Abstract: Customer win-back aims to create value for the firm by reacquiring profitable customers. However, evaluating this value beyond purchases is yet incidental in win-back management. Contrarily, customer engagement value (CEV) embraces that customers can contribute value in many ways, even without purchasing, e.g., with word-of-mouth. Specifically, this setting also applies to lost customers. Employing a combination of field and laboratory experiments, the authors integrate CEV with win-back management, addressing the question: what is the true value of lost and won-back customers, beyond purchases? Results show that CEV depends on a variety of factors, such as the win-back offer made and the defection reasons. While the results illustrate that firms have a substantial impact on CEV, this impact is not equal in contractual versus non-contractual relationships. Without a contract, CEV is independent of transactional win-back success, implying that a merely purchase-based view is misleading. Instead, lost customers are more than just lost revenue: the success of win-back activities should incorporate non-transactional aspects of CEV to adequately capture the true value of lost and won-back customers.

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ORCID: Ruhnau, Robin-Christopher ORCID: 0000-0002-8174-7071

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