Improving Customer Service and Profitability Through Customer Intervention in Service Relationships

Abstract

ABSTRACT Relationship marketing has traditionally emphasized individual relationships with customers. However, some researchers have questioned if relationship marketing is the best strategy from the customer's perspective. At the same time, some research has questioned whether relationship marketing is the best strategy from the firm's perspective. In addition, some researchers have highlighted characteristics of conscious customer misbehavior that have serious consequences for firms. The focus of this paper is what the firm response should be regarding customers who do not contribute to relationships through their conscious and unconscious behaviors. Catering to customers who do not contribute to relationships increases a firm's financial, customer service, and employee costs. The paper suggests that firms should undertake customer intervention for customers who do not contribute to relationships and look at separating customer segments, increasing prices for certain customer activities, outsourcing customers, or even firing customers. The paper also suggests that customer intervention will lead to enhanced customer service and profitability.