Customer value models in the energy market. Understanding the role of acquisition and retention effects
PhD ceremony: Ms. S.M.J. Lhoëst-Snoeck, 12.45 uur, Academiegebouw, Broerstraat 5, Groningen
Dissertation: Customer value models in the energy market. Understanding the role of acquisition and retention effects
Promotor(s): prof. P.C. Verhoef
Faculty: Economics and Business
In the recently liberalized Dutch energy market, firms invest a lot of money in the acquisition and retention of customers. Acquiring customers can facilitate short run growth, whereas retention can lead to improved customer lifetime value (CLV). A thorough study of customer relations and customer valuation provides firms with valuable insights.
In this thesis we present three studies on these topics. Chapter 2 demonstrates that a CLV model of customers should at least include retention, revenues, costs and credit risk. Through simulations of different marketing actions we show how a combination of value change and the success probability of an action lead to the determination of the most suitable action for each customer. Chapter 3 looks at the effect of acquisition campaigns on existing customers’ relational intentions and customer value. We find that customers who are aware of acquisition campaigns, despite having a higher intention to stay, do not have a significantly different CLV than unaware customers. The inclusion of attractiveness of the offer as an additional explanatory variable, results in a positive effect of attractiveness on both retention intention and CLV. Chapter 4 looks at the interplay between acquisition and retention and examines how retention and acquisition profitability are influenced by marketing communication. Based on our findings we conclude that the return on above-the-line investments is negative, i.e. spending an additional €1 million will not result in a return of this size. Firms may use the findings of this thesis to improve decision making with respect to customer value, customer acquisition and customer retention.
Last modified: | 13 March 2020 01.03 a.m. |
More news
-
29 April 2024
Tactile sensors
Every two weeks, UG Makers puts the spotlight on a researcher who has created something tangible, ranging from homemade measuring equipment for academic research to small or larger products that can change our daily lives. That is how UG...
-
29 April 2024
Royal Decoration awarded to Gerard van den Berg
The Faculty of Economics and Business is very proud to announce that Professor Gerard van den Berg has been appointed Officer of the Order of Orange-Nassau. The decoration was presented to him by Mayor Koen Schuiling of the Municipality of...
-
29 April 2024
Guido Berends and Hylke Dijkstra win FEB Research Awards 2023
The awards for best PhD thesis and best graduate of the research master were presented at the annual PhD conference held on April 18. Guido Berends won the Best PhD Thesis Award 2023 and Hylke Dijkstra won the Research Master Graduate Award 2023.