Sustained impact of higher customer satisfaction on bank revenue

Carin Segerlind, Kent Eriksson () and Cecilia Hermansson ()
Additional contact information
Carin Segerlind: KTH, Royal Institute of Technlogy in Stockholm
Kent Eriksson: KTH, Royal Institute of Technology in Stockholm, Department of Real Estate and Construction Management, Division of Real Estate Business and Financial Systems
Cecilia Hermansson: KTH, Royal Institute of Technology in Stockholm, Department of Real Estate and Construction Management, Division of Real Estate Economics and Finance

Journal of Financial Services Marketing, 2026, vol. 31, issue 1, No 8, 11 pages

Abstract: Abstract This study examines the relationship between customer satisfaction and individual-level bank revenue growth, drawing on data from 19,060 Swedish retail banking customers that combine survey responses with objective bank records. Furthermore, we investigate whether the impact of satisfaction on revenue growth is sustained over time, specifically one, two three and four years after the measurement of satisfaction, and whether this effect differs across customer satisfaction levels. The results show that higher satisfaction is associated with greater sustained revenue growth, with more pronounced effects for customers in the medium-high and highest satisfaction groups. By contrast, no significant sustained revenue growth is found for customers with low and low-medium satisfaction. The findings do not support the hypothesis of diminishing returns when moving from medium-high to the highest satisfaction levels, although weak indications suggest scope for further exploration. Overall, the findings demonstrate the long-term revenue growth of satisfied customers and emphasize the importance of targeting customers with lower to medium-low satisfaction to enhance overall revenue performance.

Keywords: Bank customer satisfaction; Bank revenue; Individual level; Sustained effects; Nonlinear effects; D14; D22; G21; G44; M31 (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41264-025-00337-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jofsma:v:31:y:2026:i:1:d:10.1057_s41264-025-00337-4

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41264

DOI: 10.1057/s41264-025-00337-4

Access Statistics for this article

Journal of Financial Services Marketing is currently edited by Tina Harrison

More articles in Journal of Financial Services Marketing from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().