Why Customers Feel Locked Into Relationship Crm Study
Why Customers Feel Locked into Relationships:
Using Qualitative Research to Uncover the Lock-in Factors
TABLE OF CONTENTS
Abstract 2 Introduction/Synopsis 3 Methodology 7 Data Collection 8 Implications for Managers 13 Limitations & Further Research 15 Conclusion 17
Abstract
The objective of this research is to explore the factors leading to the customer locking in relationship with the service using qualitative research techniques. We further intend to expand on the broad categories identified, in the secondary research, namely relational benefits of staying, switching barriers, obligatory factors, and personality factors, creating subcategories within each category. The research would also aim to evaluate the positive and negative aspects of their relationships and the customer satisfaction levels against the same.
A long term relationship is highly beneficial to the firm. The company stands to gain from such a long term relationship making higher profits, since it is widely known that the cost of customer retention is lower than acquiring a new customer. Also, a long-term customer is has been known to be instrumental in acquiring new ones. The four broad categories of lock‑in factors are relational benefits of staying, switching barriers, obligatory factors, and personality factors. All the categories appear across both positive and negative relationships, although interesting differences in category prevalence between positive and negative relationships are insightful and discussed. In the majority of service relationships, participants mention multiple factors in regard to lock‑in, rather than just one factor or category. Researchers in marketing have paid little attention to obligatory factors and personality factors and yet these factors are present in the data in a substantial way and occur in conjunction with the more well-studied factors.
Introduction
Do you know why your customers stay? Many service
Using Qualitative Research to Uncover the Lock-in Factors
TABLE OF CONTENTS
Abstract 2 Introduction/Synopsis 3 Methodology 7 Data Collection 8 Implications for Managers 13 Limitations & Further Research 15 Conclusion 17
Abstract
The objective of this research is to explore the factors leading to the customer locking in relationship with the service using qualitative research techniques. We further intend to expand on the broad categories identified, in the secondary research, namely relational benefits of staying, switching barriers, obligatory factors, and personality factors, creating subcategories within each category. The research would also aim to evaluate the positive and negative aspects of their relationships and the customer satisfaction levels against the same.
A long term relationship is highly beneficial to the firm. The company stands to gain from such a long term relationship making higher profits, since it is widely known that the cost of customer retention is lower than acquiring a new customer. Also, a long-term customer is has been known to be instrumental in acquiring new ones. The four broad categories of lock‑in factors are relational benefits of staying, switching barriers, obligatory factors, and personality factors. All the categories appear across both positive and negative relationships, although interesting differences in category prevalence between positive and negative relationships are insightful and discussed. In the majority of service relationships, participants mention multiple factors in regard to lock‑in, rather than just one factor or category. Researchers in marketing have paid little attention to obligatory factors and personality factors and yet these factors are present in the data in a substantial way and occur in conjunction with the more well-studied factors.
Introduction
Do you know why your customers stay? Many service
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