Customer Service Attracts Loyal Customers

In a new research report called Service Seekers Are More Loyal Than Price Seekers (based on a survey of about 4,600 US consumers), we analyze the loyalty of four consumer segments that I’ve previously discussed in this blog:


Source: Forrester Research

The report examines the loyalty of these segments across 12 industries: airlines, banks, wireless providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, health plans, PC manufacturers, retailers, and TV service providers. Across all industries and consumer segments, I analyzed three areas of loyalty: willingness to buy more products, reluctance to switch from current providers, and likelihood to recommend providers to friends and colleagues.

Here are some of the interesting findings from the analysis:

  • Across all 12 industries and all 3 measures of loyalty, Service Seekers are more loyal than Price Seekers
  • In all 12 industries, the most loyal segment is either Service Seekers or Price & Service Seekers.
  • In 10 of the 12 industries, Service Seekers are the most reluctant to switch away from their current provider.
  • The gap between loyal Service Seekers and loyal Price Seekers is at least 20% in the following areas:
    • Willingness to buy: Credit card providers, TV service providers, Internet service providers, airlines, and insurance providers
    • Reluctance to switch: Airlines, TV service providers, insurance providers, and hotels. 
    • Likelihood to recommend: TV service providers, credit card providers, medical insurers, Internet service providers, and insurance providers.
  • The gap between loyal Service Seekers and loyal Price Seekers is lower than 10% in only the following areas:
    • Willingness to buy: Banks, investment firms, and retailers.
    • Likelihood to recommend: Retailers, banks, and PC manufacturers.

The bottom line: Good customer service attracts more loyal customers.

About Bruce Temkin, CCXP
I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (, a non-profit organization dedicated to the success of CX professionals.

10 Responses to Customer Service Attracts Loyal Customers

  1. Pingback: Bruce Temkin: Customer Service Attracts Loyal Customers « Fredzimny’s CCCCC Blog

  2. Web Survey says:

    Customer service plays an important role in an organization’s ability to generate revenues, and as such, customer service should be a fundamental part of any company’s “valued customer” approach. In fact, there’s an enormous body of research, which strongly indicates that customer satisfaction and loyalty; are major contributors to profitability.

    Thank you for sharing your knowledge and insight.

    Best wishes.

  3. Fascinating stuff Bruce – I think this provides even more evidence that companies need to be finding out from their customers why they have chosen them and /or are considering them.

    Knowing what your customers’ priorities are helps focus your efforts and resources accordingly. Sadly, too many buinsesses never ask.

    A simple question I like is ‘why do you buy from us?’

    Bruce (and anybody else!), have you got any better ones?

  4. Pingback: Price not the Path to True Customer Loyalty at Insuring the Insurance Experience

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  7. Amy Judd says:

    Interesting read. I’ll make sure to read the full report.

  8. Pingback: You Can Trim Many Things, But Not the Customer Experience « will enter this info later

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  10. Outsource Call Center says:

    Best customer service implies practices that bring in and keep clients. . It affects important brand and business objectives like customer satisfaction, loyalty and etc. I am definitely agreed that it is the key to attracting and maintaining customers, which leads to increased business and revenue.
    Business Answering Service

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