Improved Customer Service: Literature Review and Company Analysis

Improved Customer Service: Literature Review and Company Analysis

2.1 Research on how improved customer service affects company profitability

Güngör (2007, p. 21) in his study enumerates many key benefits of improved customer services for a firm. Generally, high satisfaction of the customers should show increased loyalty amongst the firm’s current customers, insulation of their current customers from the external competitive efforts, reduced price elasticity, lower costs to attract new customers, reduced failure costs and an enhanced farm’s reputation. Increased current customers’ loyalty implies that more customers will be retained and will repurchase in the future. Decker & Crisp Learning, Inc. (2001) stated that if a company has a strong…