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

Key Points

• The study aims to investigate how customer satisfaction influences customer loyalty and how loyalty affects profitability in retail banking.
• Analyzed data from a large bank's retail-banking operations.
• Used multiple measures to assess customer satisfaction, loyalty, and profitability.
• Estimated effects of increased customer satisfaction on profitability.
• Increased customer satisfaction is linked to higher customer loyalty.
• customer loyalty positively correlates with profitability.
• Hypothesized increases in satisfaction could lead to significant boosts in profitability.

Abstract