Measuring Customer Retention in the European Automotive Sector

Abstract

Purpose:The main purpose of the work is to present the results of the customer retention level in the automotive sector based on the proposed measurement indicators: "serviced and sold" (SESO) and "sold and serviced" (SOSE). Design/methodology/approach: The study investigates the dealership of passenger cars belonging to one of the European automotive concerns. The following research methods were used in the article: systematic literature review, participant observation, and data mining. Findings: As a result of the implementation of empirical proceedings, we proposed a theoretical model in terms of data flow in sales and aftersales service processes, thus enabling the design of SOSE and SESO retention indicators and their empirical verification in the examined organization. Research limitations/implications:The presented indicators can be widely used in the analysis of retention of aftersales service clients. However, the presented research results cannot be applied to other organizations that provide similar results due to the non-probabilistically selected company. Practical implications:The proposed indicators can be used by other organizations in different industries in assessing the level of retention in manufacturer-user and seller-user relations. Originality/value: The study provides tools that allow for retention analysis from both the customer and product viewpoint. The concept has a universal value for enterprises that conduct sales and aftersales services under one structure.

Relationship Marketing and Customer Retention - A Systematic Literature Review

“…In addition, this approach helps distinguish the company from its competitors by offering products and services based on customers' needs and preferences. Customer retention is more likely to occur if customers feel that the organization values them and their performance (Sliz & Delińska, 2021). For example, responding to customer feedback can build company-customer relationships and trust by creating a sense of belonging where customers feel like they are part of the company's processes or communities.…”