A Study on Relationship Between Electronic Customer Relationship Management (E-CRM) and Customer Loyalty in the Banking Industry
Keywords:E-CRM, Customer Loyalty, Banking Industry, Regression Analysis
The persistent and rapid evolution in Information and Communication Technologies (ICTs) has changed the banking industry's operations and services. To thrive in this dynamic market environment, banks have realized that they must implement E-CRM to enhance and improve the enduring relationship with their customers. E-CRM aids to boost the quality and efficacy of customer service. The paper investigates the impact of ECRM (measured by customized products/ services, transaction security/ privacy, alternative payment methods, problem-solving, online feedback, and FAQs) on customer loyalty in the banking industry. The data is collected using a questionnaire from the 300 customers (150 each from public and private sector banks) of Delhi/NCR who are using E-CRM services. The data is analyzed using an independent t-test and multiple regression analysis. The results reveal that all six dimensions of E-CRM have a significant positive relationship with customer loyalty. This empirical results of the study will have academic and managerial implications as they will contribute to the existing knowledge base and help E-CRM managers in the decision-making process. Improving E-CRM practices will thus turn out to be a strategic competitive strategy for banks to establish interactions with their customers.