Are you trying to increase customer referrals? This research suggests to target a specific segment for maximum results.
[We’re pleased to welcome Alisha Stein and B. Ramaseshan, both of Curtin University. Drs. Stein and Ramaseshan recently collaborated on their paper recently published in Journal of Service Research entitled “Customer Referral Behavior: Do Switchers and Stayers Differ?”]
We recognized that in today’s highly competitive market environment, customer referral plays an important role in enhancing firm value through cost-effective acquisition of new customers. Service managers have to leverage the current customer base to increase referrals. To do this effectively requires an understanding of the heterogeneity among their existing customers. Such an understanding will enable service providers to develop separate customer referral strategies that are most appropriate to each of the distinct groups within the customer base. Recognizing this, we examined the customer referral behavior across two distinct customer groups – ‘switchers’ and ‘stayers’. Switchers are those who have switched to the service provider from another, while Stayers are customers…
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