The Impact of Customer Relationship Management on Customer Retention In Electronic Banking: Case of Pakistani Banks.

Abstract

This study aims to assess the impact of CRM on customer retention in electronic banking. This study has used physical environment, service quality, behavior of employees, tmst, and CRM technology (representing customer relationship management) as independent variables. Meanwhile, customer retention is used as dependent variable. However, banking sector of Pakistan is the sector finalized for assessing the relationship between customer relationship management and customer retention. To investigate the relationship, quantitative research method is used. Primary data is collected with the help of adopted structured questionnaire based on 5 Likert scale (1 =Strongly Disagree and 5=Strongly Agree). Questionnaires are distributed amongst the employees working in banking sector of Pakistan and 250 responses are gathered from the respondents through convenience sampling technique. Data coUected from the respondents are analyzed with the help of various statistical tests ( con·elation and regression analysis) through SPSS Software (SPSS 21 ). Based on the findings of this study, customer relationship management (physical environment, service quality, behavior of employees, trust, and CRM technology) positively impacts customer retention in banking sector of Pakistan. Hence, it is proved that change in customer relationship management brings a change in customer retention in banking sector of Pakistan.