COMPARING DIGITAL AND HUMAN ENGAGEMENT IN REDUCING CUSTOMER CHURN: EVIDENCE FROM A SEM-BASED STUDY IN THE INDIAN TELECOM SECTOR

Abstract

Customer churn reduction remains a critical challenge for the Indian telecommunications industry, where intense competition and low switching costs fuel high churn rates. While customer engagement has been recognized as a key driver of loyalty, limited research has examined whether digital or human engagement is more effective in reducing churn. This study investigates the comparative influence of these two modalities on customer churn reduction, using Structural Equation Modeling (SEM) with data collected from 800 telecom users across India. The findings reveal that both digital and human engagement significantly reduce churn; however, digital engagement exerts a stronger influence on churn reduction outcomes, particularly through personalized and continuous interactions via apps, websites, and social media platforms. Human engagement, while comparatively weaker in preventing churn, remains crucial for building trust and relational satisfaction. This research contributes to engagement theory by clarifying the distinct and complementary roles of digital and human interactions in churn reduction. For practitioners, the results highlight the need to prioritize digital engagement strategies while maintaining human touchpoints to strengthen customer trust and loyalty.