The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study

Presents the findings of a study performed on data from a large bank’s retail‐banking operations. Illustrates the relationship of customer satisfaction to customer loyalty, and customer loyalty to profitability, using multiple measures of satisfaction, loyalty, and profitability. An estimate of the effects of increased customer satisfaction on profitability (assuming hypothesized causality) suggests that attainable increases in satisfaction could dramatically improve profitability.