Customer satisfaction and retention in online grocery services: Avoid customer churn and retain already satisfied customers
(R2024-122526)

AUTHORS

Marc Ebel, IU International University of Applied Sciences; Sandra Gronover, Landshut University of Applied Sciences

ABSTRACT

The online grocery retail (eGrocery) in Germany accounts for a small proportion of the overall grocery retail market segment. Convincing customers of the benefits of online grocery retail is essential in order to grow and survive in this promising growth market. Due to the cost structures in online retail, a high repurchase rate is necessary. A high level of customer satisfaction is generally seen as prerequisite for customer loyalty. However, our empirical study amongst online grocery customers (n > 800) has shown that although customers are very satisfied with the services of online grocery retailers, many of these satisfied customers migrate back to brick-and-mortar grocery retailers before the critical break-even point, although their fears and negative pre-assumptions do not materialize (e.g. regarding poorer quality or higher prices). To better understand the root-causes of this satisfaction paradox, expert interviews have been conducted to understand the underlying drivers, derive broader understanding of the theoretical concepts of customer satisfaction in eGrocery and derive managerial advice.