Service companies worldwide spend billions every year on customer-loyalty programs and other preferred-guest programs aimed at getting their guests to continue their patronage, although it’s clear that many customers defect to competitors. One way to improve customer retention is to analyze guests’ behavior according to four distinct guest segments, which are based on their staying or switching behavior. The four groups are satisfied switchers, dissatisfied stayers, satisfied stayers, and dissatisfied switchers. Two groups, satisfied stayers and dissatisfied switchers, generally behave as one might expect-either staying or defecting based on their level of satisfaction. The other two groups, satisfied switchers and dissatisfied stayers, do not conform to expectations.
Most confounding are satisfied switchers, [Read more…] about Understanding switchers and stayers