Customer Loyalty Case Study in Customer Service

Reducing Customer Defections

BACKGROUND

A prominent provider of services to businesses who have a presence on the World Wide Web had been experiencing a sharp increase in the percentage of lost customers as its competition has been intensifying.

SITUATION

The analysis below began with an examination of the drivers of value for these customers. The following is a depiction of the first-order findings:

Value, which was the critical determinant of their defection probability, was equally driven by both Price and Overall Quality.

MARKETING MANAGEMENT QUESTION

Is a price reduction necessary in order to stem the rate of exodus, or can customer service be used to increase quality without lowering the price?

Find out what course of action was taken and what the results were. Read the full text - Case 2: Customer Loyalty Case Study in Customer Service.

For more information contact:
Loyalty Research Center
931 East 86th Street, Suite 120
Indianapolis, IN 46240
Tel: (317) 465-1990
Fax: (317) 465-1991
Email: LSeibert@loyaltyresearch.com
web: www.loyaltyresearch.com