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Acquiring and retaining customers in UK banks: an exploratory study

  • Jillian Dawes Farquhar
    ,
  • Tracy Panther
Research Output: Contribution to journal Article Peer-review

Abstract

This paper explores how traditional banks1 in the UK are managing customer acquisition (CA) at the same time as the retention of profitable customers. In spite of the interest of UK banks in retention, new customers often receive more favourable prices and conditions than existing customers, suggesting that acquisition may dominate. To explore the balance between acquisition and retention and to discover marketing activities that might support both, semi-structured interviews were conducted with a small sample of senior bank staff in the UK. Analysis of the interviews, using computer-aided software indicated that banks are indeed trying to manage acquisition with retention but encountering a range of difficulties as they revisit long-held strategies. The study also suggests seven activities that might contribute to a better balancing of CA with retention. By seeking expert management opinion through a qualitatively based study, this research proposes a preliminary framework of marketing activities that support both acquisition and retention.

Publication Information

Output type

Research Output: Contribution to journal Article Peer-review

Original language

English

Pages from-to (Number of pages)

Pages 9-21

Journal (Volume, Issue Number)

Journal of Retailing and Consumer Services (Volume 15, Issue 1)

Publication milestones

  • Published - 01/01/2008

Publication status

Published - 01/01/2008

ISSN

0969-6989

External Publication IDs

  • handle.net: 10547/294882
  • Scopus: 35748930869

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