After-Sales Service on Customer Retention: Material Handling Equipment Industry

Abstract

Customer retention is a growing concern in the material handling equipment (MHE) industry since it is the heart of modern global logistics operations. Hence, there is a need for customer retention knowledge in the sector. Therefore, the study aims to explore the role of after-sales service in customer retention in the MHE industry. Bangladesh has been an ideal country for research because of its enormous market demand for MHE in the fast-growing economy. Consequently, the study employed a case study research design following subjectivism, interpretivism, and constructivism research philosophy along with the inductive approach and qualitative strategy. Microsoft Forms and Teams were used for an open-ended questionnaire and interviews with three senior officials and one customer. Subsequently, the study thematized and patterned the collected data using Microsoft Office.

The empirical findings show that after-sales service in the MHE business is indispensable for customer retention, including peer-to-peer guidance, continuous support of spare parts and components, prompt communication, solutions, and consultancy. The assessment is about customer satisfaction and relationships. The study contributes to the commitment-trust theory that trustworthy and prompt communication are the indicators of commitment, while consistent and reliable service builds trust. It indicates that if companies provide more services, they will get an equal return as a two-way reward.

The research suggests that MHE companies should focus on trustworthy communication and support of all the necessary components. Companies can also provide consultancy for customers’ business development to retain customers through loyalty, satisfaction, reputation, and branding.