CRM Dimensions Affecting Customer Satisfaction in Bangladeshi Banking Industry: A Structural Equation Modeling Approach

Abstract

For the banking sector in Bangladesh, achieving customer-focused business objectives is a critical ingredient for success in order to reign over the increasingly competitive market. This prompted us to illuminate the underlying dimensions of Customer Relationship Management that influence the customer satisfaction. Accordingly, Structural Equation Modeling was employed on a sample size of 210 aiming to identify those factors, explore interdependence amongst them and assess their combined effect on customers’ satisfaction. In this regard, three latent variables were identified, namely customer orientation, customer experience and service process. The result signifies that among the chosen three factors, customer orientation and customer experience are proven to have significant impact on each other and on customer satisfaction concertedly while the other factor- service process has been proven statistically insignificant. The research findings provide empirical support for the conjecture that CRM dimensions pave the way for the firms towards improving customer satisfaction. Besides, our research contributes to empirically valid theory by synthesizing insights from the marketing and information systems literature and by investigating the effect of organizational variables that leverage CRM investments. The implications of the findings on the part of the banking industries and directions for future research are also put forward.

Keywords: Bangladesh, Customer Relationship Management, Customer Satisfaction, Customer Orientation, Customer Experience, Service Process.