Indonesian Millennial Segmentation to Increase Customer Retention in Using Online Grocery Apps

As Indonesian millennials become more familiar in purchasing products online, it also encourages the purchase of groceries to be done online. Although most millennials have used online grocery apps, but the retention is still low. The purpose of this research is to confirm the influence of customer retention antecedents to the customer retention in using online grocery apps, to identify millennial segmentation based on customer retention antecedents in using online grocery apps, and to test whether there are differences among the segments. To answer the research objectives, questionnaire is distributed to 200 millennials using simple random sampling technique. Linear regression, cluster analysis, cross-tabulation, and multiple discriminant analysis are used as analysis methods in this research. The results show that all independent variables significantly affect customer retention; with all those customer retention driving factors, four millennial segments in online grocery apps can be identified, namely Youngster Millennial, Trust Oriented Mid-Millennial, Productive Millennial, and Tech Savvy Millennial; and a significant difference is proven among those four segments with Perceived Security, Perceived Privacy, and Convenience as the most dominant differentiating factors.