Using Service to Create Loyalty with Key Accounts

In recent years, many retail industries have come to be dominated by a few extremely large competitors. For example, Wal‐Mart, Kmart, and Target prevail in the discount competitive set. Such customers are referred to as key accounts and are “treated differently” by selling firms. The accounts are given special treatment to keep them happy. The current research explores the issue of whether the extra services and commitment to key accounts are warranted. Based upon a survey of buyers within the personal products industry, the answer appears to be affirmative. Buyers for key accounts indicated significantly higher levels of customer satisfaction and customer loyalty in relation to distribution service than did the buyer respondents at all other accounts. The key account respondents apparently both recognize and value the extra efforts expended to service their accounts.