How Does Relationship Marketing Affect Customer Retention in Banking Essay

How Does Relationship Marketing Affect Customer Retention in Banking - Essay ExampleThe researcher states that traditionally there were few political science regulated nationalized banks, so banks did non compete to grab guests. The customers were loyal to the banks they went to and it carried on for generations. However, with the increasing number of private banks, the competition in the grocery has increased. The private banks are offering lucrative monetary products along with basic banking facilities. The services are prompt, the cognitive operation is short and fast, which has reduced the problems and increased the operational efficiency of the banks. The concepts of relationship marketing would be discussed in the linguistic context of the banking labor. Now the major objective of this study is to identify the significance of relationship marketing, its application, and usage in circumstance of the banking industry. This result assist in informing the readers about the relationship marketing approaches that banks utilize to retain the customers. Since customers permit more options, so they keep switching from one bank to another for short-term profits. The banks now do not depend on customer loyalty rather they wish to focus on customer retention through customer satisfaction. Keeping in mind the research hypothesis and the objectives of the study, a circumstantial review of the literature would be done, which would assist in understanding the role relationship marketing and applied science in the banking industry because technology has acted as a catalyst for relationship marketing to grow in the country.... ature would be done, which would assist in understanding the role relationship marketing and technology in the banking industry because technology has acted as a catalyst for relationship marketing to grow in the country (Bergstrom and Bresnahan, 1996). literature Review Relationship Marketing Relationship marketing can be defined as a wa y of marketing that can be developed through direct marketing campaigns, as this will assist in focusing on customer satisfaction and their retention, rather than just concentrate on sales. Relationship marketing is somewhat different from other types of marketing strategies because it considers having long-term relationship with the customers, which will draw out beyond the level of general promotion (Bharadwaj, Varadarajan, and Fahy, 1993). As the name suggests, relationship marketing deals with relationship building. In the present times, advancement of technology and growth of mobile and internet platforms has assisted relationship marketing to take and collaborate with the social communication channels. There are many tools which are applied by organizations to take for strong relationship with the customers (Chang, Chan, and Leck, 1997). In the banking industry, the marketing environment has undergone tremendous change. This is primarily due to changing government policies. The advancing technology has also intensified the competition. These factors have resulted in development of new challenges and behaviours. The loyalty of the customers towards a particular bank has declined due to the increasing level of competition in the industry (Ennew, and Binks, 1996). Nowadays the customers outwit more number of options and better offers, and the other reason is that the customers prefer to use more than one financial institution in order