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Customer Satisfaction and Revenue: Exploring Variations by Satisfaction Level and Revenue Contribution

Author

Listed:
  • Eriksson, Kent

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Hermansson, Cecilia

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Segerlind, Carin

    (Swedbank)

Abstract

Customer satisfaction research is widely recognized as one of the most utilized key performance indicators in marketing theory and practice. Extensive research underscores its positive correlation with revenue generation. This study empirically examines the relationship between customer satisfaction and changes in customer revenue at the individual customer level. Using a dataset comprising of 19,054 bank customers, the findings reveal a significant relationship between the customer satisfaction index (CSI) and revenue changes. Notably, the analysis demonstrates that this relationship is not strictly linear. Customers with satisfaction levels between 80 and 89 exhibit greater revenue changes compared to those with CSI levels of 90-100. These findings challenge the notion of customer satisfaction as a universal marketing tool for revenue generation. They suggest that satisfaction initiatives are most effective among already satisfied customers contributing to substantial revenue growth, except for those with the highest CSI scores. For customers with exceptionally high satisfaction levels, alternative marketing strategies may be required to optimize revenue generation.

Suggested Citation

  • Eriksson, Kent & Hermansson, Cecilia & Segerlind, Carin, 2025. "Customer Satisfaction and Revenue: Exploring Variations by Satisfaction Level and Revenue Contribution," Working Paper Series 25/1, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    • Handle: RePEc:hhs:kthrec:2025_001
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Customer satisfaction; customer revenue; linear relationship;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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