Online customer-initiated contacts and the development of profitable relationships

Recent advances in technology have profoundly impacted the way firms interact and transact with current and prospective customers. The emergence of online channels has been of particular relevance, as it promotes consumers' active participation in the value-creation process. In this study, we draw from the Stimulus-Organism-Response model to provide a theoretical understanding of the role played by two critical factors driving online customer-initiated contacts (OnCICs): social effects and perceived risk. Additionally, we establish a direct link between these interactions and customer profitability. We merge longitudinal objective data with subjective data for a sample of 1990 customers in financial services and apply partial least squares, revealing that social effects influence perceived risk. Perceived risk consequently promotes the development of OnCICs, while social effects reduce the need for such interactions. Finally, OnCICs help to promote high-quality relationships and leads to higher performance. Implications for theory and management are discussed.