Understanding cusatomer retention and defection in the thai department store sector: insights from central department store shopper

Abstract

This thematic paper explores the factors influencing customer retention and defection in the Thai department store sector, focusing specifically on Central shoppers under Central Retail Corporation (CRC). Employing the 3Cs analytical framework (Customer, Competitor, and Company). the study investigates the motivations behind changes in customer spending behavior. Using quantitative data collected from 2,474 shoppers segmented into “Spend More,” “Spend Less,” and “Lapsed” groups, the research identifies key drivers such as promotional attractiveness, product freshness, service quality, and macroeconomic constraints. Drawing from academic literature on customer satisfaction, segmentation, and loyalty program effectiveness, the study provides strategic recommendations tailored to Top and Mass Customers. Findings underscore that satisfaction alone does not ensure retention; instead, personalized engagement, strategic promotion, and emotional value are critical to maintaining customer loyalty. The paper concludes with practical implications for enhancing customer-centric strategies in a highly competitive and evolving retail landscape.