Augmenting customer loyalty through customer experience management in the banking industry

Forbes Makudza

Journal of Asian Business and Economic Studies, 2020, vol. 28, issue 3, 191-203

Abstract: Purpose - The purpose of this paper is to analyse and evaluate the effect of customer experience management (virtual interaction, physical interaction and service interaction) on customer loyalty in the banking industry. Design/methodology/approach - The study followed an explanatory research design to sample 384 respondents. Stepwise regression analysis was used to validate the relevance of the study model. Findings - The results indicated that there is a positive association between customer experience management and customer loyalty. The dimensions of customer experience management, namely virtual interaction, physical interaction and service interaction, were also found to be statistically significant in explaining customer loyalty behaviour. Practical implications - The study practically influences the way banks and other financial institutions gain competitive advantage through managing the experiences of customers in a volatile business environment. At a time when banks are no longer the only providers of financial services, the study offers a road map to reduce portfolio purchasing and switching behaviour through enhanced experience management at all customer touch points. Originality/value - The study presents an augmented model of customer experience management which is linked to consumer loyalty.

Keywords: Customer experience management; Consumer loyalty; Virtual environment; Physical environment; Service interaction; G21; M10; M31 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jabesp:jabes-01-2020-0007

DOI: 10.1108/JABES-01-2020-0007

Access Statistics for this article

Journal of Asian Business and Economic Studies is currently edited by Nguyen Trong Hoai and Toan Luu Duc Huynh

More articles in Journal of Asian Business and Economic Studies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().