Judging from the above study it can be concluded that

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

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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.