Closeness, strength, and satisfaction: Examining the nature of relationships between providers of financial services and their retail customers

This article presents the results of the analysis of data collected in a telephone survey of retail customers of banks and other financial institutions. The objective of the research is to identify various dimensions of the customers' relationships with their principal financial institution and to ascertain the factors that contribute to the types of close relationships that are likely to lead to customer retention, referrals, and long-term profitability. A survey of 400 adult retail bank customers provided data for analysis. The results indicate that the factors that contribute most to the establishment of close, satisfying customer relationships are affective variables, rather than situational or behavioral variables. The results also point to the existence of quite different segments of the retail bank market as defined by the type of relationship the customer wishes to have with his or her main bank.