The driving factor of customer retention: Empirical study on bank card

Abstract

The former research on customer retention and customer acquisition shows that, remaining a customer is more valuable than gaining a new one. So the driving factors of customer retention should be confirmed so as to explore the policy and means to prevent customer defection. The influence of customer satisfaction, customer value, switching cost and relationship trust on customer retention has been analyzed. The research hypotheses are proposed and customer retention driving factor model is constructed. Customers in Chinese bankcard business in a city have been investigated as research objects in the questionnaire survey and the structural equation model is used for validating the hypothesis. The results show that, customer satisfaction, customer value, switching cost and relationship trust are driving factors of customer retention, and they all positive correlated with it. Besides, there are positive correlation between customer satisfaction and customer value, customer satisfaction and relationship trust.