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Analysis of customer retention strategy in heavy industry equipment manufacturers : a case study
Thesis   Open access

Analysis of customer retention strategy in heavy industry equipment manufacturers : a case study

Tumelo Thapelo Mohale
MPhil, University of Johannesburg
2026
Handle:
https://hdl.handle.net/10210/520761

Abstract

Abstract - Customer retention is a major tactical emphasis that heavy industry equipment producers need to address if they want to keep their competitive advantage and make a profit. This research identifies the main factors that influence customer retention and loyalty in the heavy equipment sector, with a focus on the South African market. A qualitative exploratory approach was used, and views of 15 industry professionals were gathered through structured questionnaires to assess the causal relationships among eight retention-related factors. The researcher used the decision-making trial and evaluation laboratory (DEMATEL) method to figure out the interactions and prioritize the main drivers. The research identifies these four factors as the main sources of the problem: service quality, product personalization, continuous improvement, and customer loyalty, which influence the other factors mentioned in the study (cause group) significantly. High repair cost reflected marginal influence. Service convenience, participation in product development, and service center accessibility were the aspects that were identified as being most influenced by the drivers (i.e., the results). Based on these findings, the study concludes that improving service quality, enhancing personalized solutions, institutionalizing continuous improvement programs, and strengthening loyalty mechanisms are the most effective strategies for retaining heavy equipment customers. The study recommends Original Equipment Manufacturers (OEMs) to prioritize preventive maintenance programs, implement upskilling programs such as technical and operator training to enhance workforce capability, customer feedback systems, and value-based loyalty offerings as a way of dealing with the upstream drivers that have a major impact on retention results. The paper concludes with managerial proposals and recommendations for further investigations.
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