Abstract This research outlines a cross-sectional study of customer acquisition and retention and customer lifetime value (CLV) related to three prominent e-commerce business models in India: D2C (Direct-to-Consumer), Social Commerce, and Quick Commerce (Q-Commerce). All three of these models have been growing rapidly, and while research has been conducted on each of them separately, there has been little research that systematically compares them using a single framework that integrates the facets of the drivers of consumer adoption, consumer retention behaviour and consumer value over time. This study attempts to bridge a gap in the literature and provide an analytical framework for assessing how various business models create and maintain customer value. This study utilizes primary survey research conducted with customers in various cities in India, as well as transaction-level data and industry benchmarks to assess the reliability and external validity of the study. The author used quantitative methodology to study consumer motivations and customer retention and CLV of the three business models. The findings show that the motivation for customers to adopt the different business models varies significantly. The D2C model is primarily motivated by the consumer's desire for perceived authenticity and brand trust, as well as the desire for greater personalization. Social Commerce is predominantly motivated by a sense of community, while in the case of Quick Commerce, the primary motivation for adoption is the desire for convenience and speed. Differential patterns in customer retention and CLV outcomes are present across the three channels. D2C has the strongest customer retention and CLV outcomes. Social Commerce has community-oriented customer retention, while in Quick Commerce, customer churn and long-term profitability are negatively impacted by small order sizes and large operational costs. The ultimate sustainability of digital commerce channels is highly dependent on retention value, along with the previously discussed customer acquisition value.
Leelavathi C. (Thu,) studied this question.