Customer Types

Based on: Jones, T.O. and Sasser, W.E., 1995. Why satisfied customers defect. _Harvard Business Review, 73(6), p.88._ Read the article (PDF)

1. Loyalists

  • Who they are:
    Customers who are completely satisfied and keep coming back.
  • Impact on expectation management:
    • Foundation of long-term success.
    • Their expectations are well-matched to what the company delivers.
    • Includes Apostles—customers so satisfied they actively recommend the company.
    • Management: Maintain consistency, listen carefully, and exceed expectations, especially when recovering from failures.

2. Defectors

  • Who they are:
    Customers who leave after dissatisfaction, or even those who were once satisfied but had unresolved problems.
  • Impact on expectation management:
    • “Satisfaction” (e.g., 4 out of 5) is not enough; only complete satisfaction ensures loyalty.
    • Includes Terrorists—angry defectors who spread negative word of mouth.
    • Management: Act early to identify and resolve dissatisfaction. Fast recovery and proactive communication are crucial.

3. Mercenaries

  • Who they are:
    Customers who may be completely satisfied but lack loyalty—often price-driven, impulsive, or trend-chasing.
  • Impact on expectation management:
    • Costly to serve and hard to retain.
    • High satisfaction does not guarantee long-term value.
    • Management: Don’t overinvest in this group; focus on segments where expectations and value align.

4. Hostages

  • Who they are:
    Customers who are dissatisfied but stay because they have no alternatives (e.g., monopolies, high switching costs).
  • Impact on expectation management:
    • Dangerous in the long run—if market conditions change, they will defect en masse, often becoming “terrorists.”
    • Consume resources and hurt morale through frequent complaints.
    • Management: Address dissatisfaction even if customers are “stuck,” as future competition can expose vulnerabilities.

Implications for Customer Expectation Management

  • Merely “satisfying” customers is not enough; aim for complete satisfaction.
  • Different customer types require different strategies:
    • Invest in Loyalists and Apostles: Retain, delight, and empower them.
    • Recover Defectors quickly: Prevent negative perceptions from spreading.
    • Avoid overcommitting to Mercenaries: Focus on profitable, loyal segments.
    • Manage Hostages carefully: Anticipate competition and reduce frustration.

Disclaimer: AI is used for text summarization, explaining and formatting. Authors have verified all facts and claims. In case of an error, feel free to file an issue.