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Financial Statistical Analysis of Brand Loyalty and Customer Churn Rate Based on Social Media

Author(s)

Haoyuan Tan*

Affiliation(s)

School of Management, Guangdong University of Technology, Guangdong, China *Corresponding author

Abstract

This study tries to assess the effect of social media interaction on the relationship between brand loyalty and customer churn rate. Based on the results of an empirical analysis of relevant data in financial services, retail, and telecommunications, it has pointed out the essential role that brand loyalty plays in reducing customer churn rate. The results showed that there is a significant negative relevance between brand loyalty and customer churn rate; that is to say, with the increase of brand loyalty, customer churning rate would decline sharply. Meanwhile, social media interaction has a significant moderating effect in this relation; that is to say, under the high level of social media interaction, the inhibitory effect of brand loyalty on customer churning rate is more obvious. The finding provides important empirical evidence to show that strengthening the interaction in social media has the important practical significance for enterprises in enhancing brand loyalty and reducing customer churning rate. The paper gives guidance to enterprises in formulating more effective brand management strategies through an analysis of the intrinsic link between social media interaction, brand loyalty, and customer churning rate reflected in the data of social media.

Keywords

Social Media Interaction; Brand Loyalty; Customer Churn; Multivariate Regression Analysis; Empirical Research

References

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