Back From the Brink: Why Customers Stay

Much research has explored the customer’s decision to switch from one service provider to another and the impact of this decision. Less research, however, has explored the other possible decision the customer can make when considering switching—the decision to stay—and the reasons behind this decision. In light of this, the authors research customers who remained with their service provider after a recent “switching dilemma.” The dilemma requires the customer to consider carefully whether they should stay or leave. The authors collect data from 24 in-depth interviews and nearly 700 questionnaires. These are gathered from two divergent cultures and reveal seven categories of “reasons to stay,” which are present across many different service industries. The main discovery is that switching barriers, unearthed in previous research on why customers stay, only tell half the story; the other half is told by what we call the “affirmatory” factors.