Why Satisfied Customers Don't Always Stay Engaged! IIM Indore Study Reveals Key To Stronger Business Partnerships

Indore (Madhya Pradesh): Customer satisfaction alone may not be enough to build strong, long-term business relationships, according to a study by researchers at the Indian Institute of Management Indore (IIM Indore).

The research highlights how trust, commitment, involvement, supplier behaviour and digital tools influence customer engagement in business-to-business (B2B) markets.

Titled “Enhancing Our Understanding of Customer Engagement in Business-to-Business Markets: The Development of a Framework”, the study is authored by Prof Bipul Kumar, Prof Aditya Billore and Prof Ashish Sadh from IIM Indore’s Marketing Area.

Published in the Journal of Business & Industrial Marketing, it examines why satisfied customers do not always develop deeper relationships with suppliers.

The researchers reviewed 41 articles published between 2014 and 2025 and conducted 24 in-depth interviews with senior manufacturing-sector executives from the automobile, energy, medical equipment and steel industries.

The executives had nearly 12 years of professional experience on average. Drawing on these findings and theories of social exchange and engagement, the researchers developed a framework supported by nine propositions.

The study found that customers may continue buying from suppliers without developing deeper engagement, particularly when alternatives are limited or products and services are difficult to replace.

Factors contributing to satisfaction include positive supplier behaviour, social bonding, information sharing, flexibility, ethical conduct, product quality and satisfactory services. However, converting satisfaction into active engagement requires additional relationship-building efforts.

The framework examines how satisfaction, commitment, trust and involvement shape engagement, alongside internal and external factors that strengthen or weaken the relationship between satisfaction and engagement.

Digital tools, including social media, artificial intelligence (AI) and video conferencing, can facilitate communication and information sharing. Their effectiveness, however, depends on how businesses use them to address customer needs and build relationships.

Higher Engagement, Greater Business Benefits

Low customer engagement often results in transactional relationships focused on individual purchases. Higher engagement can lead to increased sales, customer referrals, smoother business dealings, faster grievance redressal and greater knowledge sharing.

These benefits can support repeat purchases, cross-selling and upselling while strengthening customer-supplier partnerships.

The framework also identifies customer equity and relationship equity as important outcomes, linking the quality of interactions to the long-term value of business relationships.

Implications for Businesses

The researchers recommend maintaining consistent product and service quality, encouraging open communication, understanding customer requirements and regularly monitoring satisfaction.

Suppliers should also offer tailored solutions and involve customers in planning, innovation and knowledge sharing to foster collaborative partnerships.

The study advances existing research by integrating relationship marketing and customer engagement literature, examining factors influencing the transition from satisfaction to engagement, and identifying outcomes associated with different engagement levels.

Future research could test the framework across industries beyond manufacturing, examine both customer and supplier perspectives, and investigate how economic and regulatory changes affect engagement.

The framework offers businesses a structured approach to understanding why satisfied customers may not become deeply engaged partners and how stronger relationships can create lasting value for both sides.