Positive Customer Churn: An Application to Online Dating

Abstract

In the service literature, churn is primarily attributed to customers who are dissatisfied with a service. However, in several industries, such as health care, weight loss services, and online dating, satisfied customers also churn because the service delivers on its promise, for example, by providing a cure, facilitating weight loss, or creating the circumstances that allow a person to meet their partner. Considering these dual churn pathways, it is necessary for companies in these markets to create awareness of what drives positive and negative churn to address the corresponding challenges for managing customer relationships. This study defines and theoretically discusses the concept of positive churn and outlines its consequences for companies in the short- and long term. Based on an analysis of combined observational and survey data from 1,369 customers, we empirically demonstrate the necessity of accounting for positive and negative churn by analyzing this phenomenon in online dating. Furthermore, this article discusses opportunities for future research on positive churn.