IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v29y2024i3d10.1057_s41264-023-00224-w.html
   My bibliography  Save this article

Determinants of customer recovery in retail banking—lessons from a German banking case study

Author

Listed:
  • Felix Hübner

    (Andrássy University)

  • Tim Alexander Herberger

    (Andrássy University)

  • Michel Charifzadeh

    (Reutlingen University)

Abstract

Due to the increased willingness of retail banking customers to switch and churn their banking relationships, a question arises: Is it possible to win back lost customers, and if so, is such a possibility even desirable after all economic factors have been considered? To answer these questions, this paper examines selected determinants for the recovery of terminated customer–bank relationships from the perspective of former customers. This study therefore evaluates for the first time, empirically and systematically with reference to a German Sparkasse as a case-study setting, whether lost customers have a sufficient general willingness to return (GWR) a retail banking relationship. From our results, a correlation is shown between the GWR a banking relationship and some specific determinants: seeking variety, attractiveness of alternatives and customer satisfaction with the former business relationship. In addition, we show that a customer’s GWR varies depending on the reason for churn and is surprisingly greater when the customer defected for reasons that lie within the scope of the customer himself. Despite the case-study character, however, our results provide relevant insights for other banks and, in particular, this applies to countries with a comparable banking system.

Suggested Citation

  • Felix Hübner & Tim Alexander Herberger & Michel Charifzadeh, 2024. "Determinants of customer recovery in retail banking—lessons from a German banking case study," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(3), pages 655-682, September.
    • Handle: RePEc:pal:jofsma:v:29:y:2024:i:3:d:10.1057_s41264-023-00224-w
    DOI: 10.1057/s41264-023-00224-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-023-00224-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-023-00224-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Athanassopoulos, Antreas D., 2000. "Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior," Journal of Business Research, Elsevier, vol. 47(3), pages 191-207, March.
    2. Homburg, Christian & Hoyer, Wayne & Stock-Homburg, Ruth, 2007. "How to Get Lost Customers Back? Insights into Customer Relationship Revival Activities," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35535, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Christopher Helm & Tim Alexander Herberger & Nicolay Gerold, 2022. "Application of Cognitive Automation to Structuring Data, Driving Existing Business Models, and Creating Value between Legacy Industries," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-23, April.
    4. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    5. Doreén Pick & Jacquelyn S. Thomas & Sebastian Tillmanns & Manfred Krafft, 2016. "Customer win-back: the role of attributions and perceptions in customers’ willingness to return," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 218-240, March.
    6. Homburg, Christian & Hoyer, Wayne & Stock, Ruth, 2007. "How to Get Lost Customers Back? A Study of Antecedents of Relationship Revival," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60474, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Homburg, Christian & Hoyer, Wayne & Stock-Homburg, Ruth, 2007. "How to get lost costumers back? Insights into customer relationship revival activities," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 29590, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Gerring, John, 2004. "What Is a Case Study and What Is It Good for?," American Political Science Review, Cambridge University Press, vol. 98(2), pages 341-354, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bogomolova, Svetlana, 2016. "Determinants of ex-customer winback in financial services," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 1-6.
    2. Doreén Pick & Jacquelyn S. Thomas & Sebastian Tillmanns & Manfred Krafft, 2016. "Customer win-back: the role of attributions and perceptions in customers’ willingness to return," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 218-240, March.
    3. Gerpott, Torsten J. & Ahmadi, Nima & Weimar, Daniel, 2015. "Who is (not) convinced to withdraw a contract termination announcement? – A discriminant analysis of mobile communications customers in Germany," Telecommunications Policy, Elsevier, vol. 39(1), pages 38-52.
    4. Fernandes, Teresa & Calamote, Ana, 2016. "Unfairness in consumer services: Outcomes of differential treatment of new and existing clients," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 36-44.
    5. Ascarza, & Neslin, & Netzer, & Lemmens, Aurélie & Anderson, Zachery & Fader, Peter S. & Gupta, S. & Hardie, B.G.S. & Libai, Barak & Neal, David & Provost, Foster, 2018. "In pursuit of enhanced customer retention management : Review, key issues, and future directions," Other publications TiSEM 28a90d28-6daf-42f1-bd8e-e, Tilburg University, School of Economics and Management.
    6. Risselada, Hans & Verhoef, Peter C. & Bijmolt, Tammo H.A., 2010. "Staying Power of Churn Prediction Models," Journal of Interactive Marketing, Elsevier, vol. 24(3), pages 198-208.
    7. Jessica Weber, 2023. "Coordination Challenges in Wind Energy Development: Lessons from Cross-Case Positive Planning Approaches to Avoid Multi-Level Governance ‘Free-Riding’," Land, MDPI, vol. 12(11), pages 1-25, October.
    8. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    9. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    10. Behrooz Gharleghi & Asghar Afshar Jahanshahi & Khaled Nawaser, 2018. "The Outcomes of Corporate Social Responsibility to Employees: Empirical Evidence from a Developing Country," Sustainability, MDPI, vol. 10(3), pages 1-15, March.
    11. Van den Poel, Dirk & Lariviere, Bart, 2004. "Customer attrition analysis for financial services using proportional hazard models," European Journal of Operational Research, Elsevier, vol. 157(1), pages 196-217, August.
    12. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    13. Jörn H. Block & Christian O. Fisch & James Lau & Martin Obschonka & André Presse, 2019. "How Do Labor Market Institutions Influence the Preference to Work in Family Firms? A Multilevel Analysis Across 40 Countries," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1067-1093, November.
    14. Liu, Yulong & Yu, Yang, 2018. "Institutions, firm resources and the foreign establishment mode choices of Chinese firms: The moderating role of home regional institutional development," Journal of Business Research, Elsevier, vol. 93(C), pages 111-121.
    15. Moslehpour, Massoud & Lin, Yi Hsin & Nguyen, Thi Le Huyen, 2017. "Top purchase intention priorities of Vietnamese LCC passengers: Expectations and satisfaction," MPRA Paper 81635, University Library of Munich, Germany.
    16. Kalinic, Igor & Brouthers, Keith D., 2022. "Entrepreneurial orientation, export channel selection, and export performance of SMEs," International Business Review, Elsevier, vol. 31(1).
    17. López-Sáez, Pedro & Cruz-González, Jorge & Navas-López, Jose Emilio & Perona-Alfageme, María del Mar, 2021. "Organizational integration mechanisms and knowledge transfer effectiveness in MNCs: The moderating role of cross-national distance," Journal of International Management, Elsevier, vol. 27(4).
    18. Wei-Shong Lin & Jui-Ling Huang & Margaret L. Sheng, 2014. "How the Organizational Goals Affect Knowledge Management," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(1), pages 3-22.
    19. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    20. Lise A. Oortmerssen & Marjolein C. J. Caniëls & Marcel F. Assen, 2020. "Coping with Work Stressors and Paving the Way for Flow: Challenge and Hindrance Demands, Humor, and Cynicism," Journal of Happiness Studies, Springer, vol. 21(6), pages 2257-2277, August.

    More about this item

    Keywords

    Dissonance theory; Retail banking; Customer recovery management; General willingness to return;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:29:y:2024:i:3:d:10.1057_s41264-023-00224-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.