Regaining Service Customers

Abstract

Service markets are increasingly competitive while at the same time customer loyalty decreases. To succeed in these markets, service providers have to address not only prospects and existing customers but also lost customers as a distinct target group for their customer management. This article develops a conceptual basis for “regain management” aimed at winning back customers who either give notice to terminate the business relationship or whose relationship has already ended. Regain management offers service providers profitable acquisition by adopting a specific management process consisting of regain analysis, regain actions, and regain controlling. Essential for this process is a customer database that allows segmentation of lost customers and a segment-specific variation of regain dialogues and regain offers.