We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
A New Indicator of Success or Challange for Companies: Lost Customer Grade (LCG).
- Authors
Şehirli, Mustafa
- Abstract
The aim of this study is to develop a new, practical and shorter scale that can replace a customer churn scale whose validity and reliability has been verified before, and in general replace all other lost customer scales. This scale can be used as a success (or failure) indicator and comparison area for companies. In the study, instead of having long discussions with customers who have left the brand they receive service from for some reason, a rating criterion has been put forward that determines how strong (or weak) determination and intent the customers in question have left the relevant brand with a single question. The validity of the scale has been confirmed through confirmatory factor analysis. This scale, called Lost Customer Grade (LCG), is similar to NPS (Net Promoter Score), which is one of the most important indicators of customer loyalty, but it is a measure that looks at customer loyalty in reverse. While NPS reveals the extent to which customers recommend the brand they are familiar with and the reasons behind it, LCG shows the complete opposite. The statement that will be directed to customers in the scale, and will rate their dissatisfaction is "When I'm chatting with people I know, it's comforting to disparage A (it's good for me)". Following this statement, an open-ended question will be asked to reveal why customers think this way. In this way, companies will be able to know at what rate they lose their customers with different frequency and intensity compared to each other, and the probability of returning these customers with a global comparison value, and they will be able to have an idea about the potential negative word of mouth (WOM) effect.
- Subjects
CONSUMERS; CONFIRMATORY factor analysis; BRANDING (Marketing); WORD of mouth advertising; REPURCHASE agreements
- Publication
Turkish Studies - Economics, Finance, Politics, 2024, Vol 19, Issue 1, p293
- ISSN
2667-5625
- Publication type
Article
- DOI
10.7827/TurkishStudies.71812