Home > Understanding the Impact of CRM on Customer Loyalty: The Mediating Role of Customer Satisfaction and Trust A Study of Banking Sector in Faisalabad .
Understanding the Impact of CRM on Customer Loyalty: The Mediating Role of Customer Satisfaction and Trust A Study of Banking Sector in Faisalabad .
Main objectives of this research study are to investigate the mediating role of customer satisfaction and
customer trust between (perceived) customer relationship management (CRM) and customer loyalty and to
investigate the inter-relationship between CRM, customer satisfaction, customer trust and customer loyalty. In
this study banking sector was selected as a sample, banks which offer their services to general public at large
were considered such as private banks, Islamic banks and foreign banks branches located in Faisalabad region.
Sample of study was consisted of 250 individual customers of banks which were selected by convenient
sampling technique.
A self-administrative questionnaire was used for collecting data from selected sample which was adapted- from
previous literature. Statistical techniques such as descriptive statistic, cronbach alpha, correlation analysis,
ANOVA and Regression analysis were applied on data by using (Statistical Package for the Social Sciences)
SPPS .16.0.
Results indicated that there are statistically significant positive linear relationships among all study variables,
the level of significance for all study variables were significant at (p < 0.01) level 2 tailed. Results also revealed
that CRM have significant and positive influence and relationship with customer satisfaction, customer trust
and customer loyalty. On other hand customer satisfaction and trust also have significant and positive influence
and relationship with customer loyalty. The exclusive and essential findings of this study are that Customer
satisfaction and customer trust partially mediate the relationship between CRM and customer loyalty.
This study also enhance management's knowledge and provide managerially relevant (actionable) results that
by improving CRM system and strategies in banks, they can get more customer's satisfaction and customer's
trust which ultimately strengthen favourable behavioural intensions such as customer's loyalty. Furthermore,
there is no study previously done in Pakistan especially in specific region (Faisalabad) that has found mediating
effect of customer satisfaction and trust between CRM and customer loyalty. This study is a distinguished but
limited contribution in literature.
The overall findings and recommendations of this study contributes towards improvement of existing CRM
strategies and applications of banks that also helps them to overcome their weaknesses by and achieve
competitive advantage in form of loyal customers.