Content area
This paper addresses the challenge of enhancing customer retention in the mobile industry through a problem-solving approach. It advocates for a balanced strategy that shifts emphasis from costly acquisition-focused marketing efforts to more cost-effective customer retention initiatives, grounded in the commitment-trust theory of relationship marketing (Morgan & Hunt, 1996). The current study extends this framework by incorporating predictive modeling based on transactional data from mobile users' problem experiences. A web-based survey was conducted to evaluate the impact of disruptive events on customer retention. Using Binary Logistic Regression analysis, the study identifies key variables affecting customer retention in a hierarchical order, including the type of service problem, the communication channel used for lodging complaints, the frequency of issues, and the level of trust. Moreover, this study introduces a data-based transactional metric, the Net Problem Score (NPS) designed to support proactive recovery strategies and reduce potential customer churn, especially among high-value customers, before negative feedback proliferates on social media. The paper concludes with managerial implications, highlighting the importance of enhancing employees" problem-solving and relational skills to strengthen customer retention efforts.