The purpose of this dissertation is to find out which parameters servicecompanies are using in order to create customer satisfaction and customer loyalty. Theories that we have chosen to consider deal with relationshipmarketing, service quality, different types of loyalty, customer value, customer loyalty, customer satisfaction, loyalty programs, customer clubs, monetary benefits and social bonds. From parts of these theories we have created a modelthat we claim show how companies in the service sector create satisfied andloyal customers. To test our model in reality we conducted a case study withthree companies in the bank sector. After the case study we refined our modelso it better reflects reality. Our findings are that the parameter called social bonds has a significant importance for the companies we have studied.Monetary benefits and loyalty programs are other factors that the companiesuse to create satisfied and loyal customers. None of the companies we havestudied use customer clubs as a parameter to create satisfied and loyalcustomers. More research has to be done and some suggestions for this will begiven.