The Research Of Influencing Factors And Retention Strategy On Customer Churns For Online Stores

In recent years, network platform has been a vital approach for shopping.Numerous customers intend to purchase goods through online stores like TaobaoMall instead of traditional and real stores. Electronic commerce develops sorapidly in that customers could save a lot of time by shopping online withoutextra cost. Nevertheless, online shopping still exists many problems. To illustrate,consumers have to take risk on transaction exposure and private informationdisclosure. Customer churn instantly increase due to drawbacks of E-commerce.According to the official statistics,80%consumers completely leave the onlinestores after the first consumption. Beside, customer churn issues would beincreasingly serious because of limited market resource and numerouscompetitors.Collection and identification of influencing factors is the foundation ofcustomer churn reduction and customer maintain strategy establishment. Throughcollecting and organizing literature, this paper proposes fifteen factors and takesuse of factor analysis method to reduce dimensions and categorize proposedinfluencing factors, and finally obtain four attributes in terms of e-marketingservice factors, online store promotion factors, online store cognition and riskfactors and quality assurance factors. Furthermore, this research also studies oncorrelation between influencing factors of online store customer churn andcustomer’s characteristics by means of crosstabs method. Eventually, concludingthe effective strategy to decrease customer churn rate for online store managers.