The effect of e-CRM on customer satisfaction in the banking industry : a case study in Malta

Abstract

In this technologically advanced era, the introduction of electronic customer relationship management (e-CRM) is ever more crucial for banks as they go to the extra mile to maintain existing clients and entice new ones. This study sought to investigate and assess Maltese customers’ satisfaction with e-CRM services delivered by the local banks and to analyse how demographic factors influence customer ratings. Data was gathered using questionnaires from a large sample of bank customers as a quantitative research method was deemed to be the most appropriate for the study. The collected data was statistically analysed so as to evaluate the relationship between the independent variable of trust and the dependent variables including age, occupation, banks’ e-CRM services usage per month and the number of years of being a customer. The findings indicated that e-CRM exerted a dominant influence on the evaluation of customer satisfaction and trust, with excellent e-CRM services provided by other financial entities cited by participants as the primary reason participants contemplated switching banks. The vast majority of respondents who used e-CRM services believed that banks offered excellent e-CRM services, while a minority of participants still believed there is space for improvement. Additionally, the survey indicated that a large majority of participants trusted their banks, with no statistical significant relationship found between demographic factors and trust, except for occupation. Despite the fact that the statistical analysis did not find any correlation between trust and the majority of demographic factors, this may have been impacted by elements that were not taken into account in the questionnaire, such as interpersonal interactions or cultural variables. The study emphasises how crucial it is to invest in e-CRM abilities to keep current customers and attract new ones. It also highlights how crucial it is for banks to consistently enhance their e-CRM services and go above and beyond customer expectations.