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Measuring and improving customer retention at authorised automobile workshops after free services

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  • Kumar, Anil
  • Luthra, Sunil
  • Khandelwal, Dinesh Kumar
  • Mehta, Rajneesh
  • Chaudhary, Nityanand
  • Bhatia, Sukhdev

Abstract

Customer retention is vital for businesses with much research literature now available. But nothing has been investigated regarding measuring and improving customer retention at authorised automobile workshops after free services. Even after providing extensive warranties and other free service benefits, customers don't use authorised workshops although their vehicles are still under warranty. By not arranging regular maintenance services, customers lose warranty benefits, with product performance and safety related awareness undermined; companies lose huge business potential. Therefore, this study aims to measure and improve customer retention at authorised automobile workshops after free services. To achieve this, a four-phased study has been conducted. In phase one, a combination of a literature review and expert opinions is used to identify customers' retention factors. The second and third phases describe how data is collected from industry experts and customers. Analytical Hierarchy Process (AHP) and Decision Making Trial & Evaluation Laboratory (DEMATEL) are used to prioritise and examine inter-relationships among factors. In the last phase, the study recommends three business strategies to help a company to improve customer retention and make their Annual Maintenance Contract (AMC) product more customer friendly.

Suggested Citation

  • Kumar, Anil & Luthra, Sunil & Khandelwal, Dinesh Kumar & Mehta, Rajneesh & Chaudhary, Nityanand & Bhatia, Sukhdev, 2017. "Measuring and improving customer retention at authorised automobile workshops after free services," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 93-102.
    • Handle: RePEc:eee:joreco:v:39:y:2017:i:c:p:93-102
    DOI: 10.1016/j.jretconser.2017.07.007
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    5. Shokouhyar, Sajjad & Shokoohyar, Sina & Safari, Sepehr, 2020. "Research on the influence of after-sales service quality factors on customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    6. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    7. Andy Chin Woon Fook & Omkar Dastane, 2021. "Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis," Jindal Journal of Business Research, , vol. 10(1), pages 7-32, June.
    8. Lamrhari, Soumaya & Ghazi, Hamid El & Oubrich, Mourad & Faker, Abdellatif El, 2022. "A social CRM analytic framework for improving customer retention, acquisition, and conversion," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    9. Darley, William K. & Luethge, Denise J., 2019. "Service value and retention: Does gender matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 178-185.
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