UNDERSTANDING THE CUSTOMER BASE OF SERVICE PROVIDERS: An examination of the differences between switchers and stayers

This fascinating study was conducted by Professor Jaishankar Ganesh of the Rutgers University, Mark J. Arnold — Department of Marketing Chair of the Saint Louis University, and Professor Kristy E. Reynolds of the Culverhouse College of Commerce. It was published in the prestigious Journal of Marketing, Vol. 64, July 2000.

While it focuses on the retail banking industry, its implications are applicable and deal with the relationship between customers who have switched from one provider to another either because of dissatisfaction or reasons not connected to satisfaction, and those who actually stayed. By looking at these customers from the vantage point of the company they switched to, some strong implications can be derived as to what companies can do to retain or recapture their customers.

So, you may want to take a look at the study itself and then fast forward to the implications and conclusions at the end of the Power Points.