IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v12y2021i4p415-424.html
   My bibliography  Save this article

Customer Digital Engagement and Lifetime Value: An Empirical Study of Telecom Services in India

Author

Listed:
  • Hitesh Sood
  • Rajendra Prasad Sharma

Abstract

Digitalization has posed severe challenges to traditional businesses. Traditional firms are still not sure of the benefits of digitally engaging their customers. In contrast, the new-age firms have successfully leveraged digital media. This article examines the relationship between digital adoption by customers and customer lifetime value (CLV). This study analysed the mobile recharges by 13 million rural and urban prepaid telecom customers over 60 million transactions from January 2019 to June 2019 in the Indian telecom industry. The computed predictive CLV has been computed and compared across various customer segments (digitally engaged, partially digitally engaged and digitally unengaged customers). The studied data were statistically validated using the Kruskal–Wallis test. The data proved to be non-normally distributed as per the Kolmogorov–Smirnov test. The results supported that digital adoption helps increase customer engagement, loyalty and CLV. The study presents several managerial implications, such as digitally engaged customers being a surrogate for high value and more profitable customers. Also, digitally engaged customers are relatively more loyal, contributing higher CLV than digitally unengaged customers.

Suggested Citation

  • Hitesh Sood & Rajendra Prasad Sharma, 2021. "Customer Digital Engagement and Lifetime Value: An Empirical Study of Telecom Services in India," FIIB Business Review, , vol. 12(4), pages 415-424, December.
    • Handle: RePEc:sae:fbbsrw:v:12:y:2021:i:4:p:415-424
    DOI: 10.1177/23197145211065086
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/23197145211065086
    Download Restriction: no
    File URL: https://libkey.io/10.1177/23197145211065086?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
    ---><---

    References listed on IDEAS

    as
    1. Peter J. Danaher & Isaac W. Wilson & Robert A. Davis, 2003. "A Comparison of Online and Offline Consumer Brand Loyalty," Marketing Science, INFORMS, vol. 22(4), pages 461-476, February.
    2. Eigenraam, Anniek W. & Eelen, Jiska & van Lin, Arjen & Verlegh, Peeter W.J., 2018. "A Consumer-based Taxonomy of Digital Customer Engagement Practices," Journal of Interactive Marketing, Elsevier, vol. 44(C), pages 102-121.
    3. Sudhir Rana, 2021. "Digitalization as a Vehicle to Balance New vs Old Practices of Consumers and Organizations," FIIB Business Review, , vol. 10(3), pages 193-195, September.
    4. Kannan, P.K. & Li, Hongshuang “Alice”, 2017. "Digital marketing: A framework, review and research agenda," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 22-45.
    5. Dahana, Wirawan Dony & Miwa, Yukihiro & Morisada, Makoto, 2019. "Linking lifestyle to customer lifetime value: An exploratory study in an online fashion retail market," Journal of Business Research, Elsevier, vol. 99(C), pages 319-331.
    6. Peter S. Fader & Russell S. Winer, 2012. "Introduction to the Special Issue on the Emergence and Impact of User-Generated Content," Marketing Science, INFORMS, vol. 31(3), pages 369-371, May.
    7. Sharad Borle & Siddharth S. Singh & Dipak C. Jain, 2008. "Customer Lifetime Value Measurement," Management Science, INFORMS, vol. 54(1), pages 100-112, January.
    8. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2012. "Online and Offline Demand and Price Elasticities: Evidence from the Air Travel Industry," Information Systems Research, INFORMS, vol. 23(1), pages 164-181, March.
    9. Leeflang, Peter S.H. & Verhoef, Peter C. & Dahlström, Peter & Freundt, Tjark, 2014. "Challenges and solutions for marketing in a digital era," European Management Journal, Elsevier, vol. 32(1), pages 1-12.
    10. Felix, Reto & Rauschnabel, Philipp A. & Hinsch, Chris, 2017. "Elements of strategic social media marketing: A holistic framework," Journal of Business Research, Elsevier, vol. 70(C), pages 118-126.
    11. Sorescu, Alina & Frambach, Ruud T. & Singh, Jagdip & Rangaswamy, Arvind & Bridges, Cheryl, 2011. "Innovations in Retail Business Models," Journal of Retailing, Elsevier, vol. 87(S1), pages 3-16.
    12. Badra Sandamali Galdolage, 2021. "Barriers for Entering the Digital World: Exploring Customer Value Co-destruction in Self-Service Technologies," FIIB Business Review, , vol. 10(3), pages 276-289, September.
    13. Sundararajan, Arun, 2016. "The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262034573, April.
    14. Labrecque, Lauren I. & vor dem Esche, Jonas & Mathwick, Charla & Novak, Thomas P. & Hofacker, Charles F., 2013. "Consumer Power: Evolution in the Digital Age," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 257-269.
    15. Kim, Angella J. & Ko, Eunju, 2012. "Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand," Journal of Business Research, Elsevier, vol. 65(10), pages 1480-1486.
    16. Shaji Mathai & Saket Jeswani, 2021. "Effectiveness of Print Media Marketing in Digital Age: A Study on Indian Telecommunication Industry," FIIB Business Review, , vol. 10(3), pages 242-254, September.
    17. Rajkumar Venkatesan, 2017. "Executing on a customer engagement strategy," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 289-293, May.
    18. Taylor, David G. & Strutton, David, 2010. "Has e-marketing come of age? Modeling historical influences on post-adoption era Internet consumer behaviors," Journal of Business Research, Elsevier, vol. 63(9-10), pages 950-956, September.
    19. Tat Y. Chan & Chunhua Wu & Ying Xie, 2011. "Measuring the Lifetime Value of Customers Acquired from Google Search Advertising," Marketing Science, INFORMS, vol. 30(5), pages 837-850, September.
    20. Gerald Häubl & Valerie Trifts, 2000. "Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids," Marketing Science, INFORMS, vol. 19(1), pages 4-21, 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. Kannan, P.K. & Li, Hongshuang “Alice”, 2017. "Digital marketing: A framework, review and research agenda," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 22-45.
    2. Kohsuke Matsuoka, 2020. "Exploring the interface between management accounting and marketing: a literature review of customer accounting," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(3), pages 157-208, September.
    3. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    4. Key Pousttchi & Maik Dehnert, 2018. "Exploring the digitalization impact on consumer decision-making in retail banking," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 265-286, August.
    5. Park, Joonyong & Kim, Renee B., 2018. "A new approach to segmenting multichannel shoppers in Korea and the U.S," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 163-178.
    6. María Rocío Bonilla Quijada & José Luis Del Olmo Arriaga & David Andreu Domingo, 2021. "Insights into user engagement on social media. Findings from two fashion retailers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 125-137, March.
    7. Aron Culotta & Jennifer Cutler, 2016. "Mining Brand Perceptions from Twitter Social Networks," Marketing Science, INFORMS, vol. 35(3), pages 343-362, May.
    8. Alice Mazzucchelli & Roberto Chierici & Angelo Di Gregorio & Claudio Chiacchierini, 2021. "Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1107-1144, December.
    9. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    10. Bayer, Emanuel & Srinivasan, Shuba & Riedl, Edward J. & Skiera, Bernd, 2020. "The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value," International Journal of Research in Marketing, Elsevier, vol. 37(4), pages 789-804.
    11. Belém Barbosa & José Ramón Saura & Dag Bennett, 2024. "How do entrepreneurs perform digital marketing across the customer journey? A review and discussion of the main uses," The Journal of Technology Transfer, Springer, vol. 49(1), pages 69-103, February.
    12. Hu, Miao & Chen, Jie & Chen, Qimei & He, Wei, 2020. "It pays off to be authentic: An examination of direct versus indirect brand mentions on social media," Journal of Business Research, Elsevier, vol. 117(C), pages 19-28.
    13. Ana Alina Tudoran, 2022. "A machine learning approach to identifying decision-making styles for managing customer relationships," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 351-374, March.
    14. Sheng, Jie, 2019. "Being Active in Online Communications: Firm Responsiveness and Customer Engagement Behaviour," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 40-51.
    15. Ghouri, Arsalan Mujahid & Mani, Venkatesh & Haq, Mirza Amin ul & Kamble, Sachin S., 2022. "The micro foundations of social media use: Artificial intelligence integrated routine model," Journal of Business Research, Elsevier, vol. 144(C), pages 80-92.
    16. Hongshuang (Alice) Li, 2022. "Converting free users to paid subscribers in the SaaS context: The impact of marketing touchpoints, message content, and usage," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2185-2203, May.
    17. Fangfang Li & Jorma Larimo & Leonidas C. Leonidou, 2021. "Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 51-70, January.
    18. Savannah Wei Shi & Jie Zhang, 2014. "Usage Experience with Decision Aids and Evolution of Online Purchase Behavior," Marketing Science, INFORMS, vol. 33(6), pages 871-882, November.
    19. Estrella Díaz & David Martín-Consuegra & Hooman Estelami, 2016. "A persuasive-based latent class segmentation analysis of luxury brand websites," Electronic Commerce Research, Springer, vol. 16(3), pages 401-424, September.
    20. Aimé, Isabelle & Berger-Remy, Fabienne & Laporte, Marie-Eve, 2022. "The brand, the persona and the algorithm: How datafication is reconfiguring marketing work☆," Journal of Business Research, Elsevier, vol. 145(C), pages 814-827.

    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:sae:fbbsrw:v:12:y:2021:i:4:p:415-424. 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: SAGE Publications (email available below). General contact details of provider: .

    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.