CUSTOMERS EXPERIENCE MANAGEMENT AND LOYALTY IN THE BANKING INDUSTRY
chapter One
1.0 Introduction
1.1 Research background
In today’s business environment, loyal customers are considered the cornerstone of success for many service businesses, especially the Nigerian banking sector. This goes to other organizations in the service sector such as insurance, hospitality, etc.
The premise is customer satisfaction. Loyalty, retention and profitability automatically follow. However, according to current opinion, the relationship between satisfaction and loyalty is more complicated than originally thought. As the commercialization of many service offerings continues, a new source of competitive differentiation/advantage emerges from a focus on customer experience management. Loyalty is so important to a company’s survival and profitable growth that it becomes even more important to measure it. Existing approaches to measuring loyalty have not proven very effective in this task.
Loyalty is seen as the key to the success of any organization and ultimately the reason for its survival (Pullman and Gross, 2003; Rahman, 2006). And small changes in the number of loyal customers impact an organization’s growth and overall profitability (Heskett et al., 2000; Rahman, 2006).
The end result of generating loyalty is growing your brand, advocating for it, and using it again and again. It is generally noted that customer satisfaction in this area is low. Service quality and customer satisfaction can therefore be front-line areas for achieving competitive advantage in the banking sector (Rayport et al. (2004); Jones and Farquhar (2003); Knights et al. (2004); Rahman (2006)).
Companies that recognize their customers as creators of their experiences must find different ways to improve their customer experience. Knowledge of the customer experience helps companies achieve customer satisfaction, whether it’s positive or not. With satisfaction comes loyalty, retention and profitability (Rahman, 2006). Customers, as creators of experiences, can also support companies in developing and customizing products. according to your type of customer. Satisfied and loyal customers are more likely to spend more, make repeat purchases, are less price sensitive, are more likely to recommend others, and are more likely to save money on maintenance (Duncan and Moriaty Reichheld and Sasser, 2000; Yin, 2009).
As such, loyal customers are essential to the survival and success of many service industries, especially hospitality, insurance, and finance (Rahman, 2005). It is said that a small change in the percentage of loyal customers can make a big difference not only in profits but also in the overall value of a company (Rahman, 2005).
As such, loyal customers are essential to the survival and success of many service industries, especially hospitality, insurance, and finance (Rahman, 2005). It is said that a small change in the percentage of loyal customers can make a big difference not only in profits but also in the overall value of a company (Rahman, 2005). Therefore, marketers strive to understand the key to building strong and lasting customer relationships.
1.2 Problem definition:
Research on customer experience management and loyalty in the banking industry has emerged as a result of the challenges and obstacles faced by companies seeking to influence the delivery of positive customer experiences. Finally, most research has been done on customer experience management, but there is not a single study on customer experience management and loyalty in the b-banking industry.
1.3 Purpose and objectives of the research
The primary objective of the research work is to determine customer experience management and loyalty in the banking industry. Other specific objectives of this study are:
1 aims to identify the challenges and obstacles companies face when trying to influence the delivery of positive customer experiences.
2 Determine the impact of current customer initiatives.
3 to explore the result of customer experience initiative measure.
4 to determine how financial institution prioritize customer experience efforts within the organization.
5 to proffer possible solution on the management and satisfaction of customers.
1.4 RESEARCH QUESTIONS
1 What are the challenges and obstacle an organization face while trying to impact on the delivery of a positive customer experience?
2 What is the impact of current customer experience efforts? 3 How is the success of customer experience initiatives measured?
4 Where are financial institutions prioritizing customer satisfaction efforts within their organizations?
5 What is your solution for customer management and satisfaction?
1.5 Description of research hypothesis
H0:
There is no significant correlation between customer experience management and customer loyalty in the banking industry.
H1:
In the banking industry, there is a strong correlation between customer experience management and customer loyalty. 1.6 Importance of research
Research on customer experience management and loyalty in the banking industry would be interesting. The research will enable the industry to enable consumers to interact with banks when and how they want.
1.7 Scope of investigation
Research on customer experience management and loyalty is limited to the banking industry.
1.8 Research Limitations
Financial Constraints – Lack of funding tends to prevent researchers from obtaining relevant materials, literature, or information and efficiently conducting data collection (internet, questionnaires, and interviews).
Time Constraints – Researchers will carry out this research in parallel with other academic research. As a result, less time is spent on research work.
1.9 Definition of terms
An individual who purchases goods or services from a customer store or business.
Experience knowledge and skills by doing, seeing, and feeling things.
The process of dealing with and managing things or people.
Loyalty Loyalty to promises and commitments. Faithful adherence to a sovereign, government, leader, cause, etc.
Banking industry These are financial intermediaries involved in the movement of funds from end savers to end users.
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