Predicting Maintenance Contract Service Renewals using the Internet of Things and Customer Behaviors: A Supplier Perspective

The contract terminations for the provision of maintenance services to the tenants of the managed mall affected our organization’s planning, strategy, operations, and revenue. Being able to predict the contract renewals, prevention and readiness plans can be made. Using the data from the computer-aided facilities management (CAFM) software and the available research papers about customer behaviors; the contract renewal outcomes were predicted. In this paper, the operations data of 47 mall tenants (customers) that operates different types of retails were utilized. The data by performance, satisfaction, asset condition and relationship based on the review of the previous studies were categorized. Binary logistic regression was utilized to test the data. The results showed that communication was the strongest influencer to the customers’ behaviors in service contract renewals more than price, satisfaction, and experience. When we understood how to interpret and use the data from the internet of things (IoT), it helped suppliers not only to predict the renewal outcomes, but also build a strategic customer retention program by using the significant variables identified.