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Acquiring and retaining customers in UK banks: An exploratory study

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  • Farquhar, Jillian Dawes
  • Panther, Tracy

Abstract

This paper explores how traditional banks11Banks, in this study also refer to building societies. in the UK are managing customer acquisition (CA) at the same time as the retention of profitable customers. In spite of the interest of UK banks in retention, new customers often receive more favourable prices and conditions than existing customers, suggesting that acquisition may dominate. To explore the balance between acquisition and retention and to discover marketing activities that might support both, semi-structured interviews were conducted with a small sample of senior bank staff in the UK. Analysis of the interviews, using computer-aided software indicated that banks are indeed trying to manage acquisition with retention but encountering a range of difficulties as they revisit long-held strategies. The study also suggests seven activities that might contribute to a better balancing of CA with retention. By seeking expert management opinion through a qualitatively based study, this research proposes a preliminary framework of marketing activities that support both acquisition and retention.

Suggested Citation

  • Farquhar, Jillian Dawes & Panther, Tracy, 2008. "Acquiring and retaining customers in UK banks: An exploratory study," Journal of Retailing and Consumer Services, Elsevier, vol. 15(1), pages 9-21.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:1:p:9-21
    DOI: 10.1016/j.jretconser.2007.02.001
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    References listed on IDEAS

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    1. Spiggle, Susan, 1994. "Analysis and Interpretation of Qualitative Data in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 491-503, December.
    2. Eugene W. Anderson & Claes Fornell & Roland T. Rust, 1997. "Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services," Marketing Science, INFORMS, vol. 16(2), pages 129-145.
    3. Jillian Dawes Farquhar, 2005. "Retaining customers in UK financial services: The retailers' tale," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 1029-1044, December.
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    Citations

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    Cited by:

    1. Shah, Purvi, 2020. "Managing customer reactions to brand deletion in B2B and B2C contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    2. Yan Dong & Yuliang Yao & Tony Haitao Cui, 2011. "When Acquisition Spoils Retention: Direct Selling vs. Delegation Under CRM," Management Science, INFORMS, vol. 57(7), pages 1288-1299, July.
    3. Soopramanien, Didier & Hong Juan, Liu, 2010. "The importance of understanding the exchange context when developing a decision support tool to target prospective customers of business insurance," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 306-312.
    4. Muhammad Naeem Anjum & Bi Xiuchun & Jaffar Abbas & Zhang Shuguang, 2017. "Analyzing predictors of customer satisfaction and assessment of retail banking problems in Pakistan," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1338842-133, January.
    5. Marjan S. Jalali & Fernando A. F. Ferreira & João J. M. Ferreira & Ieva Meidutė-Kavaliauskienė, 2016. "Integrating Metacognitive and Psychometric Decision-Making Approaches for Bank Customer Loyalty Measurement," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 815-837, July.

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