DOES CUSTOMER RELATIONSHIP MANAGEMENT IMPROVE CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN RETAIL BANKING

Dr. V. Krishnamoorthy, V. Anandavel

Abstract


The purpose of the study is to investigate, does the customer relationship management, improve customer satisfaction and customer loyalty in retail banks. This study was conducted in Theni District of Tamil Nadu state. This study was conducted during the period of January 2014 to May 2014. The results of factor analyses revealed five CRM dimensions, namely, Trust, Commitments, Competence, Customer Experience and Relationship Quality. ‘Trust’ dimension was highly viewed CRM dimensions among the customers. The significantly associating important profile variables with the importance attached on the CRM dimensions have been identified in case of Age and Educational Qualifications. ‘Commitment’, ‘Competence’, ‘Relationship Quality’ and ‘Customer Experience’ dimensions of CRM were found to positively affect customer satisfaction. Furthermore, ‘Trust’, ‘Competence’, ‘Commitment’ dimensions of CRM were found to be positively impacted the customer loyalty. The identification of the CRM dimensions and its impact on customer satisfaction and customer loyalty will help the bank management to design suitable policies regarding CRM in retail banking.

Keywords


Trust; Commitment; Competence; Relationship Quality; Customer Experience

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References


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