Digitalisation-Driven Gamification and Customer Churn Reduction: A Mediated PLS-SEM Approach via Brand Attractiveness

This study investigates the influence of digitalised content strategies on customer churn reduction through the mediating role of Brand Attractiveness, focusing on the retail industry and targeting Millennial consumers in Klang Valley, Malaysia. Guided by the Stimulus-Organism-Response (S-O-R) framework, the research examines the effects of Augmented Reality, Mobile Apps, Online Communities, Social Media, and Virtual Reality on Brand Attractiveness and subsequent customer churn reduction. A quantitative, cross-sectional research design was employed. Primary data were collected via an online survey from 306 Millennial respondents using a structured questionnaire. Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4 was utilised to analyse the measurement and structural models, with bootstrapping (10,000 resamples) used for mediation analysis to ensure the robustness of the results. The findings indicate that Mobile Apps, Online Communities, and Virtual Reality exert significant positive effects on Brand Attractiveness, whereas Augmented Reality exhibits no significant direct or mediating effects. Social Media engagement shows a statistically significant but practically negligible mediation effect on customer churn reduction. Furthermore, Brand Attractiveness significantly mediates the relationships between key digital strategies and churn reduction, highlighting its central role. These outcomes offer critical insights for retail managers seeking to reduce customer churn by enhancing Brand Attractiveness through well-designed digital touchpoints. Future research should adopt longitudinal approaches and consider integrating emerging technologies, such as AI and blockchain, to extend the model across diverse retail settings and demographic segments.