The changing nature of customer engagement over time

Subject Areas : Journal of Business Analysis

samad Aali ¹ , Shiva Mohammadi ²

1 - Associate Professor, Department of Business Administration, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2 -

Received: 2024-12-03 Accepted : 2025-10-21 Published : 2025-11-06

Keywords: Customer Engagement Value, Relationship Lifecycle, Relationship Dynamics, Insurance Industry,

Abstract :

Purpose – The present research aimed to determine the customer engagement extent in creating value for the firm during the relationship lifecycle in the insurance industry.

Design/methodology/approach – A total of 376 customers of insurance industry who used Life insurance services participated in the study by completing a questionnaire. The data were analyzed using confirmatory factor analysis and variance analysis.

Findings – The results showed that the customers have the highest engagement in creating value for the firm in the buildup and maturity stage of the relationship. Customer engagement, in the relationship maturity phase, is in higher level than the other stages in terms of the Customer Lifetime Value, Customer Influence Value, and Customer Knowledge Value. Also, the highest value created by customer referral occurs at the buildup stage of the relationship.

Practical implications – Considering the level of customer relationship with the firm is necessary to obtain more value from the customer through direct and indirect engagement. Therefore, service firms, that appreciate the importance of different investment for customers, should put the strategy of customer segmentation based on relationship lifecycle and the personalization of the service on its agenda in order to achieve the highest value of customer engagement and the optimal use of their resources.

 

Originality/value – this is the first empirical study that dynamically evaluates the customer engagement value and shows how the customer engagement value varies over the relationship lifecycle stages based on the Relationship Dynamics Theory.

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