The effect of acquisition channels on customer loyalty and cross-buying

Abstract

cquisition channels are important predictors of customer loyalty in the first stages of a business-consumer relationship. Although some researchers have provided examples of the differences in the value of the customers businesses acquire via different channels, they have not considered the impact of acquisition channels on loyalty and cross-buying. Using probitmodels we explored how retention rates and cross-selling opportunities differ among the various acquisition channels a financial-services provider uses. Our results indicate that the direct-mail acquisition channel performs poorly on retention and cross-selling, while radio and TV perform poorly for retention only. The firm's Web site seems to perform well for retention. The theoretical and practical implications of our results are discussed.

Investigating Structure Relationship from Functional and Relational Value to Behavior Intention: The Role of Satisfaction and Relationship Commitment

“…It has been earlier proved that customer feel obligated to increase their future intentions when the retailers invests and value in the relationship (Kang and Ridgway, 1996). For instance, Parasuraman et.al (1988) suggest that customers' favorable behavioral intentions associated with the service provider's ability to get them to remain loyal and loyalty strongly affects company profit (Verhoef, 2005). Hence, firms nowadays are becoming focus on creating and delivering the value to the potential customers and also realize the important roles of perceived value (Hansen et al, 2008), customer satisfaction (Lee et.…”

Mobile Customer Relationship Management: a communication perspective

“…As mentioned above, companies cannot communicate identically across the different channels and, thus, some channels are more suited to, or more often used for, certain communications (Verhoef & Donkers 2005). Furthermore, it is of critical importance to acknowledge that different channels may serve different purposes (Neslin et al 2006).…”

“…Balasubramanian et al 2002, Tsang et al 2004, Shankar et al 2010, whereas all other channels are restricted in this respect. Therefore, some channels are more suited to, or more often used for, certain communications (Verhoef & Donkers 2005).…”

“…Companies often use different channels to acquire customers than they do to maintain customer relationships (Bolton et al 2004, Verhoef & Donkers 2005. Several different channels are available to companies seeking to acquire new customers.…”

“…Several different channels are available to companies seeking to acquire new customers. Those acquisition channels most relevant to the multichannel environment presented here are direct marketing, the Internet and face-to-face channels (Bolton et al 2004, Verhoef & Donkers 2005.…”