Life after death? Analyzing post-defection consumer brand equity

The industry literature is full of the idea of winning back lapsed customers. Yet marketing practitioners and academics know very little about what happens to customers after they stop buying the brand. This research investigates the brand equity of lapsed customers of five major financial institutions. The analysis compares the propensity for positive and/or negative brand associations, overall brand evaluation, and the propensity to consider the brand in the future across the main segments of lapsed customers. The results show that the group of lapsed customers is not homogenous, but consists of distinct segments. Customers who defected for different reasons also differ in their post-defection brand equity. The paper concludes with implications for winback strategies for lapsed customers and brand equity measurement and management.