The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Customer Retention, Recommendation, and Share-of-Wallet July 30, 2007
By Timothy L. Keiningham, Bruce Cooil, Lerzan Aksoy, Tor W. Andreassen, Jay Weiner
The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Customer Retention, Recommendation, and Share-of-Wallet research examines different customer satisfaction and loyalty metrics and tests their relationship to customer loyalty behaviors. The goal was to test the robustness of the customer-level analysis conducted by Reichheld and Satmetrix, which served as the foundation of their Net Promoter research. Contrary to Reichheld's assertions, the results indicate that recommend intention alone will not suffice as a single predictor of customers' future loyalty behaviors. Use of multiple indicators instead of a single predictor model performs significantly better in predicting customer recommendations and retention.
Managing Service Quality has made the paper available for free. Download it at www.emeraldinsight.com.
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