The Impact of Customer Relationship Management on Long-term Customers’ Loyalty in the Palestinian Banking Industry

Abstract

This paper aims to investigate the impact of customer relationship management on Long-term Customers' Loyalty in the Palestinian banking industry. The data was collected through distributing questionnaires on the Palestinian banking employees. Using multiple regression analysis tests, this paper finds these results; there is a positive and strong linear relationship between dependent variable "long-term customers' loyalty" and CRM, the CRM dimensions are service quality, customer's database, solving customer's problems, employees behavior, and CRM system integration. At the end, the two predictors (employee's behavior and CRM system integration) explained 48.2% of the variance in the long-term customers' loyalty. The scholars' found that banks have to investigate why there is a difference in the service quality level between male and female employees where male employees more effective than females. Furthermore, banks need to update their customers' database in order to be alerted to changes in their customers' requirements and needs to retain their loyal relationships with customers.

The determinant factors for the adoption of CRM in the Palestinian SMEs: The moderating effect of firm size

“…Customer Relationship Management (CRM) is explained as a concept of use process, information, technology, and people to manage the organizations’ interactions with its customers [ 9 ]. By applying efficient and effective CRM technology, CRM employees in SMEs could retain existing customers, attract new customers, foster customer satisfaction, and increase profitability.…”

“…Customer relationship management (CRM) refers to the practices, strategies, and technologies used by firms and businesses for the management and analysis of customer interactions and data through the customer lifecycle [ 7 , 8 ]. It is the concept of using process, information, technology, and people to manage the organization’s interaction with customers [ 9 ]. The technology could be seen as an approach to marketing that has its origins in relationship marketing.…”

The Mediating Role of Customers' Satisfaction on the Effect of CRM on Long-Term Customers Loyalty in the Banking Sector in the Palestinian Territory

“…Muro et al (2013) studied the challenges and the strategical benefits of utilizing the customer relationship management systems in the banking industry, they showed that CRM builds robust loyalty relationship with customer if it will be implemented appropriately and it benefits employees, investors and customers. Iriqat and Abu Daqar (2017a) found that there is a positive and strong relationship between CRM and long-term customers' loyalty. Additionally, CRM system integration has a positive direct impact on long-term customers' loyalty.…”

“…Skowron and Kristensen (2012) more specifically investigated the impact of financial or banking crises on consumer loyalty in the banking industry, the results show that customers in developing countries have lower loyalty levels than those in developed countries and that financial crises have more substantial effect on customers' loyalty in developing countries. Iriqat and Abu Daqar (2017a) investigated the impact of customer relationship management on long-term customers' loyalty in the Palestinian Banks; they demonstrate that there is a direct impact on long-term customers' loyalty and employees' behavior.…”

“…CRM has a major role in the banks by supporting them to capture customers' data and boost the customer information accessibility thus enabling the bank branches to recover their business identity. This study aims to emphasize the importance of building and maintaining good relations with customers which could result in a better customer satisfaction and better CRM system management (Iriqat & Abu Daqar, 2017a).…”