Value, satisfaction, loyalty and retention in professional services

Abstract

PurposeThe purpose of this paper is to assess customers' perceived value of professional services and how this influences satisfaction, loyalty and ultimately retention.Design/methodology/approachA survey is conducted among professional service providers in the Tampa Bay, Florida (USA) Metropolitan Statistical Area, which includes attorneys, financial professionals, physicians, dentists and private investigators.FindingsThere is a highly significant relationship between service and customer retention, quality and customer retention, image and customer retention, price and customer retention, and value and customer retention. There is a significant relationship between value and satisfaction on customer retention; between value and loyalty's effect on customer retention; and among value, satisfaction and loyalty on customer retention.Research limitations/implicationsStatistically, the findings cannot be generalized beyond the scope of this study and the Tampa area. However, this can be tested in further research.Practical implicationsThe service, quality, image and price model had a significant correlation to customer retention. The four components of value – service, quality, image and price – are each directly related to customer retention and therefore should be used by service professionals and managers as an important strategy to retain their clients.Originality/valueProfessional services is an under researched area in the value, satisfaction and customer retention area and this study fills this gap.