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Importance of Customer Satisfaction in Banking

Customer satisfaction is critical for business success and maintaining long-term customer relationships. Satisfied customers provide value by sharing positive feedback with others and remaining loyal, repeat customers. Banks must ensure high levels of customer satisfaction to retain customers and maintain their reputation, especially during times of banking crises when customers pay closer attention to bank operations. Meeting customer needs, gaining a competitive advantage through customer happiness, and boosting customer retention through satisfaction are important goals for companies. Research has found relationships between customer satisfaction, loyalty, and trust for banks. Additionally, factors like timely service, problem-solving skills, and knowledge of services positively impact customer satisfaction, while appearance can negatively impact satisfaction.

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957 views2 pages

Importance of Customer Satisfaction in Banking

Customer satisfaction is critical for business success and maintaining long-term customer relationships. Satisfied customers provide value by sharing positive feedback with others and remaining loyal, repeat customers. Banks must ensure high levels of customer satisfaction to retain customers and maintain their reputation, especially during times of banking crises when customers pay closer attention to bank operations. Meeting customer needs, gaining a competitive advantage through customer happiness, and boosting customer retention through satisfaction are important goals for companies. Research has found relationships between customer satisfaction, loyalty, and trust for banks. Additionally, factors like timely service, problem-solving skills, and knowledge of services positively impact customer satisfaction, while appearance can negatively impact satisfaction.

Uploaded by

Lorie Anne Valle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Customer Satisfaction

Companies strive to satisfy their consumers, since customer

satisfaction serves as a foundation upon which other goals can be

constructed and attained (Ibojo and Asabi, 2015). They also stated that it was

a reflection of the organization's accomplishments. According to Safi (2017), a

satisfied customer provides critical information to a variety of stakeholders,

including corporate management, policymakers, competitors, and other

customers.

Customers have become more attentive to the operations of banks, as

a result of various banking crises. It is also critical that these operations

ensure that clients are well cared for and satisfied if the banks are to keep

them and maintain their good reputation (Belas et al, 2015). According to

Koraus (2011), a satisfied customer becomes a loyal customer, and keeping

them requires up to five times less effort and money than finding a new one.

Customer satisfaction is thus critical and at the heart of a successful business

and long-term relationship between the company and its customers.

According to Ibojo and Asabi (2015), in order to attain customer

happiness, it is necessary to comprehend, know, and meet the market's

needs. Similarly, Al-Maslam (2015) claims that the environment is now very

competitive, and customer happiness is one approach to gain a competitive

advantage as well as a long-term advantage.

Client pleasure boosted customer retention (Iqbal and Shah, 2016).

This is because satisfied customers will return for more, and their

recommendations to others will bring in new clients for the company. In Sri

Lankan banks, Leninkumar (2017) investigated the relationship between


customer pleasure and loyalty. Customer loyalty, trust, and satisfaction were

studied by the researcher. The researcher noticed that banks' external

environment was becoming increasingly competitive, and banks were

attempting to build customer loyalty in order to improve their financial position

and growth.

In India, Paul et al (2016) performed research on the impact of service

quality on customer satisfaction in the commercial and public sectors.

Customer satisfaction was positively correlated with timely service, improved

effort in reducing quieting time, and problem-solving skills, according to their

findings. Customer happiness, on the other hand, was found to be positively

associated with knowledge of services and efficient service. However, there

was a resemblance in that both private and public banks found that

appearance was inversely associated to client satisfaction.

All references are in this link:

https://www.researchgate.net/publication/

350524243_CUSTOMER_SATISFACTION_IN_BANKING_SECTOR_THE_C

ASE_IN_NORTH_IRAQCITY_OF_ERBIL

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