Service quality perceptions of solely loyal customers

Having more solely loyal customers (those who only use one supplier) is an aspiration for most service providers.

Service quality perceptions of solely loyal customers

Swetlana Bogomolova

University of South Australia

Introduction

Many customer relationship management (CRM) programmes, particularly cross-selling initiatives, are aimed at growing the number of loyal customers a brand has. The attraction of loyal customers lies in the understanding that they bring higher returns while costing less to keep, when compared to ‘disloyal’ customers who divide their loyalty across many brands (Reichheld & Sasser 1990). In addition, the more products customers have with one service provider, the harder it is for them to switch away, hence customer retention increases (Reichheld & Sasser 1990; de Ruyter...

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