How Customer Relationship Marketing Affect on Customer Loyalty and Customer Satisfaction: A Case of Banking Sector Karachi, Pakistan

Abstract

Financial institutions always consider the need and demand of its customers in order to become successful and compete today's competitive environment. The main purpose of this research is to determine the impact of customer relationship marketing on customer satisfaction and customer loyalty. The study was conducted in Karachi, Pakistan. The data were collected from 200 customers who had an account in banks and visiting bank counters. The data was analyzed on SPSS 20. The results of the study found that customer relationship marketing have a positive and strong impact on customer satisfaction and customer loyalty.

Financial institutions play an important role in Pakistan's economy. As competition increases rapidly, people are becoming more conscious about services. They make decisions on the basis of their perceptions. Customer relationship marketing plays a vital role in retaining and satisfying customers. Customer relationship marketing enhances the loyalty and satisfaction level of customers. For financial institutions it is very necessary for relationship managers to understand their needs and demands because in today's competitive environment they have many choices to switch.