THE RELATIONSHIP AMONG CUSTOMER SATISFACTION, LOYALTY AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS


Finance

THE RELATIONSHIP AMONG CUSTOMER SATISFACTION, LOYALTY AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS

Customer satisfaction is an important factor in the performance and competitiveness of banks (Keisidou et al., 2013; Chavan & Ahmad, 2013; Belás, Chochoľáková, & Gabčová, 2015). Compliance with the consumers’ needs and requirements (Bilan, 2013), comprehensive customer care and the bank customers satisfaction is currently in the centre of attention of researchers and bankers (as it represents an important marketing variable for most of the companies (Munari et al., 2013).
Jméno a příjmení autora:

Jaroslav Belás, Lenka Gabčová

Rok:
2016
Ročník:
19
Číslo:
1
Klíčová slova:
Commercial banks, customer satisfaction, customer satisfaction determinants, customer loyalty, cross-selling, banks´ additional income
DOI (& full text):
Anotace:
In the current banking sector, characterized by an increasing competition, efficient management of selling additional products and services to existing satisfied customers represents a significant…více
In the current banking sector, characterized by an increasing competition, efficient management of selling additional products and services to existing satisfied customers represents a significant opportunity to improve the financial performance of a commercial bank. To sum up, the conclusion of the up to date literature is an idea that customer satisfaction leads to customer loyalty and loyalty leads to willingness to purchase additional products. However, there are practically no papers quantifying the influence of loyalty on additional products purchases. The aim of this paper is to create a model among customer satisfaction, loyalty and financial performance of commercial banks in the Czech Republic. It is based on our original research realized as a survey with a total of 459 respondents that have been reached. The created model has proven that product quality, recognition of customers´ financial needs and acceptance of prices by a customer have an impact on customer satisfaction, which then influences customer loyalty and this in return influences additional purchases potential of a customer. The regression model of relation between customer satisfaction and loyalty of bank customer has this form: CL = 0.01163 + 0.9191 x CS, where: CL – customer loyalty, CS – customer satisfaction. The regression model of relation between customer loyalty and additional purchases: APP = -0.05667 + 0.5848 x CL, where: APP – additional purchases potential, CL – customer loyalty. At the end, the paper is dedicated to a model example showing that if a commercial bank is able to increase the number of satisfied customers by 10,000, it can obtain additional yearly income of EUR 9.6 million.
Sekce:
Finance

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