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Pillars of Customer Retention in the Services Sector: Understanding the Role of Relationship Marketing, Customer Satisfaction, and Customer Loyalty

Author

Listed:
  • Mazhar Hussain

    (Hazara University)

  • Asad Javed

    (Hazara University)

  • Samar Hayat Khan

    (Galiyat Development Authority)

  • Muhammad Yasir

    (Hazara University)

Abstract

This research aims to examine the impact of relationship marketing on customer retention, as well as the moderating role of customer loyalty and the mediating role of customer satisfaction by means of relationship marketing theory. In today’s business climate, companies of all sizes and types prioritize customer retention and acquisition. Customer retention, satisfaction, and loyalty are essential for a company’s profitability and growth, whereas building strong, long-term relationships with customers is at the core of relationship marketing. Developing trust, commitment, communication, and conflict management skills are all essential components of fostering these relationships, which ultimately result in increased customer satisfaction and retention. The study population consisted of 5276 employees working at different courier services offices across the Khyber Pakhtunkhwa province, Pakistan. A sample size of 385 was calculated using the Krejcie and Morgan sampling formula, and data were collected through self-administered questionnaires adapted from previous studies. The data-driven results indicate a positive relationship between relationship marketing, customer satisfaction, and customer retention in the services sector of Pakistan. Additionally, customer satisfaction mediates this relationship, while customer loyalty moderates it. These results have significant implications for companies seeking to retain and satisfy their customers.

Suggested Citation

  • Mazhar Hussain & Asad Javed & Samar Hayat Khan & Muhammad Yasir, 2025. "Pillars of Customer Retention in the Services Sector: Understanding the Role of Relationship Marketing, Customer Satisfaction, and Customer Loyalty," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 2047-2067, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02060-2
    DOI: 10.1007/s13132-024-02060-2
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