Lost and win-back customers: towards a theoretical framework of customer relationship reactivation

Abstract

Research has shown that there is a negative correlation between the number of "lost customers" and business income. Stauss and Friege (1999) have found that the net return on investment from a new customer is 23% compared to a 214% return on investment from the reinstatement of a customer who has defected. Customer win-back is an important part of a customer relationship management strategy and focuses on the re-initiation and management of relationships with customers that have lapsed or defected from a firm (Thomas, Blattberg, and Fox, 2004). This study presents an ongoing doctoral research and is mainly conceptual in nature. It develops a theoretical framework of Customer Relationship Reactivation in B2C services and is interested in a dual analysis relating relationship dissolution and reactivation in B2C services. The research questions are: •Why do some ended relationships reactivate? • How does the process of reactivation develop in B2C services?