Customer Satisfaction and Loyalty Measurement: A Two-Sided Approach

Abstract

This paper explores customer satisfaction and loyalty measurement within the framework of relationship theory and loyalty theory. We believe that there is a strong relationship between customer satisfaction and loyalty and a firm’s loyalty-oriented internal management factors such as loyalty-oriented marketing strategies, organizational structure, tactics, employee satisfaction and loyalty, and measurement systems. We propose a conceptual model that integrates both sides of the satisfaction and loyalty formula. The goals of this model are to widen the scope of loyalty measurement, to provide insights to drivers of satisfaction and loyalty and to create a simple but comprehensive model for management.