An empirical study into the influence of customer satisfaction on customer revenues

Abstract

It is broadly expected that customer satisfaction (CS) influences customer revenues (CR), but there is little evidence for the corresponding hypothesis. If CS influences CR, there must be a relation between CS at time t = 0 and CR at time t > 0. We developed a statistical model representing this relation, which we tested in a longitudinal study using person-level data (N = 1682) from a Dutch retail bank. We found that CS had a positive effect on CR with 1-year and 2-year time lags. These results support the hypothesis that CS influences CR.

Keywords:

• customer satisfaction
• revenue
• retail banking
• longitudinal study