Customer loyalty trajectory for B2B firms: unveiling patterns of retention
- Customer loyalty is a critical measure for success, showing if a firm's product is received well by its customers. To understand its development over time, two fundamental questions must be answered: (I) How will current customers' loyalty develop, and (II) will new customers' loyalty differ from current customers' loyalty? The authors empirically answer these questions based on a data set including ~500 B2B web technologies with jointly ~325 million customers spanning over 24 years. They show that loyalty hardly develops and, if so, it rather decreases than increases. The loyalty of current customers rarely changes and, if so, rather increases than decreases. New customers are most likely less loyal than current customers. These results show that by failing to account for these underlying developments, stakeholders, in most cases, draw the wrong conclusions about product value measured via customer lifetime value.
Author: | Johannes Roscher, Ali TamaddoniORCiD, Bernd SkieraORCiDGND |
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URN: | urn:nbn:de:hebis:30:3-809504 |
ISSN: | 1866-1238 |
ISSN: | 2700-2241 |
Parent Title (English): | Efl insights : an elf - the Data Science Institute publication |
Publisher: | E-Finance Lab e.V. |
Place of publication: | Frankfurt am Main |
Document Type: | Article |
Language: | English |
Date of Publication (online): | 2024/07/01 |
Date of first Publication: | 2024/07/01 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2024/07/12 |
Volume: | 2024 |
Issue: | 2 |
Page Number: | 3 |
First Page: | 6 |
Last Page: | 8 |
Institutes: | Angeschlossene und kooperierende Institutionen / E-Finance Lab e.V. |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |