Customer Relationship Management Practices and Customer Loyalty in Indian Banking: A Comparative Empirical Study of Selected Public and Private Sector Banks
DOI:
https://doi.org/10.55829/1n4adk24Keywords:
Customer Relationship Management, Customer Loyalty, Public Sector Banks, Private Sector Banks, Indian Banking, Service Quality, Digital BankingAbstract
This paper studies the impact of Customer Relationship Management (CRM) practices on customer loyalty in the Indian Banking sector and examines the customer perceptions of selected Public and Private Banks in India. Design/methodology/approach: This study uses a quantitative, cross-sectional survey methodology with a structured questionnaire. 350 customer responses, split equally between Public and Private banking sector customers, formed the analytical dataset. The twelve CRM practices were evaluated using a Likert scale with the following dimensions; communication and engagement of staff, promptness of service, handling of complaints, trust and transparency, digital services, privacy of customer data and protection, and feedback. Customer loyalty was evaluated using the following six dimensions: satisfaction, trust, intent to continue/repurchase, recommendation, and preference. The following statistical methods were employed: descriptive statistics, Cronbach alpha, Welch independent-sample t-test, Pearson correlation, and simple linear regression. Findings: The CRM scale demonstrated strong internal consistency (alpha = 0.847). Loyalty scale consistency was acceptable (alpha = 0.703). Customers of Private Banks demonstrated greater CRM perceptions (M = 3.80) and greater loyalty (M = 4.05), than customers of Public Banks. Public/Private Bank differences were statistically significant for CRM and loyalty. CRM was moderately and positively correlated with loyalty (CRM explained 27% of loyalty). Originality/value: This study provides an empirical analysis of the CRM-loyalty relationships for Indian Banking and outlines actionable CRM related recommendations for Public and Private Indian Banks.
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