TY - JOUR
T1 - Customer satisfaction
T2 - Cost driver or value driver? Empirical evidence from the financial services industry
AU - Terpstra, Maarten
AU - Verbeeten, Frank H M
PY - 2014
Y1 - 2014
N2 - We investigate the relation between customer satisfaction, customer servicing costs, and customer value in a financial services firm. We find that customer satisfaction is positively associated with future customer servicing costs, as well as with customer value. The relation between customer satisfaction and customer value appears non-linear; higher customer satisfaction appears to have a higher return for the most profitable customer segments. Our findings indicate that customer satisfaction is a value driver; however, customer satisfaction is not cost-free and managers have to consider the costs, as well as the benefits, of increasing customer satisfaction.
AB - We investigate the relation between customer satisfaction, customer servicing costs, and customer value in a financial services firm. We find that customer satisfaction is positively associated with future customer servicing costs, as well as with customer value. The relation between customer satisfaction and customer value appears non-linear; higher customer satisfaction appears to have a higher return for the most profitable customer segments. Our findings indicate that customer satisfaction is a value driver; however, customer satisfaction is not cost-free and managers have to consider the costs, as well as the benefits, of increasing customer satisfaction.
KW - Customer profitability
KW - Customer satisfaction
KW - Customer servicing costs
KW - Customer value
KW - Financial services firm
UR - https://www.scopus.com/pages/publications/84899941129
UR - https://www.scopus.com/inward/citedby.url?scp=84899941129&partnerID=8YFLogxK
U2 - 10.1016/j.emj.2013.07.001
DO - 10.1016/j.emj.2013.07.001
M3 - Article
AN - SCOPUS:84899941129
SN - 0263-2373
VL - 32
SP - 499
EP - 508
JO - European Management Journal
JF - European Management Journal
IS - 3
ER -