increase in satisfaction of customer also causes the customer loyalty to be increased. Judging from the above study it can be concluded that customer loyalty is an attitude that is formed when the customer is satisfied and they can make the purchase again and tell the other person for what he felt. This study endeavored to discover the effect of customer satisfaction on loyalty. Consumer loyalty has a constructive outcome of improving bank financial position. Today’s competitive environment has directly encouraged the banking sector’s development and growth through increasing efficiency and market discipline, as well as introducing more sophisticated products and services. It is now important for banks to understand the factors affecting customer loyalty and the process of development of customer loyalty, customer relationship management and how to increase customer satisfaction as customer loyalty is considered to be the foundation of a company’s competitive advantage thus influencing performance This study has likewise added to the writing to highlight the significance of building strong customer loyalty in the banking industry since loyalty is directly proportional to the sales and benefit the organization through positive word of mouth from customers when they are satisfied. It is important to know the perceived value and trust experienced by the customer in order for a bank to improve its customer service as well as to survive in today’s competitive market. Results suggest that foreign banks have created a good perception and image to the public. At the same time, it shows that foreign banks are caring about the customers and involved in developing customer loyalty. This study indicates that if the customer is satisfied and happy, and assuming that the banking products and services received by the customer is measurable and offer competitive value, the
20 CUSTOMER LOYALTY IN BANKING SECTOR IN PAKISTAN customer will then remain loyal to the bank for the long term. Hence, innovation is a factor of success as bankers need to continue to introduce and offer competitive products to the market. In conclusion, it is important for banks to focus on the development of customer loyalty programs because strong loyalty will lead to profitability and competitive advantage. This will enable them to sustain their business in the present competitive environment. Implementation of a customer loyalty program is important to retain the existing portfolio because the cost of acquiring new customers is always higher than retention. Banks ought to assemble a solid association with the client and give higher nature of administrations to lessen client exchanging conduct. As discussed earlier, perceived value and trust have a positive and strong significant relationship towards customer satisfaction and loyalty. Bankers should also focus on operational issues, especially staff service, customer relationship managers and personal bankers. Furthermore, packages offered to the customer should match market requirements.
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- Summer '16
- Dr Abraham
- Customer Satisfaction & Customer Trust, Developing Customer Loyalty