Impact of Customer Relationship Management (CRM) Through Online Banking Services on Customer Retention with Mediating Role of Customer Perception and Satisfaction. A Case of Standard Chartered Bank Pakistan

  • Sadaf Latif Assistant Professor, The Institute of Management Sciences (PAK-AIMS), Lahore, Pakistan
Keywords: Customer perceptions, Customer relationship management, Customer retention and satisfaction, online banking.


Customer retention and satisfaction are two important indicators of effectiveness of marketing strategies for companies. Customer relationship management has emerged as one of the most important factor determining the competitive edge for companies in different industries. In the Pakistani Banking industry, the online banking is used as a key tool for establishing better and effective relationship with the customers through the different touch points offered. The Customer Relationship Management through online banking has substantial implications for the customer retention in the Banking industry. This study analyzed the role of Online Banking CRM in context of Standard Chartered Bank Pakistan for assessing the impacts on Customer retention. The regression analysis was performed on the primary data collected from 120 respondents sampled from online banking customers of Standard Chartered Bank from Lahore Branches. The results indicate that CRM has significant relationship with customer satisfaction and perceptions regarding products and services of the bank which in turn results in increased ability of the bank to retain its customers.


F. R. Darrell K. Rigby and C. Dawson, "Winning customer loyalty is the key to winning a CRM Strategy," IVEY Business Journal, no. 9B03TB01, 2003.

K. SK, "Addoption Issues of Internet Banking in Pakistani Firms," DiVA, Lulea University of Technology, Sweden, 2007.

P. S. N. A. S. T. Kevin R. Parker, "The Impact of Inaccurate Color on Customer Retention and CRM," The International Journal of an Emerging Transdiscipline , vol. 12, pp. 105-122, 2009.

Y. z. P.Saha, "Relationship between Online Service Quality and Customer Satisfaction. A case of Internet Banking.," DiVA, March 2005. [Online]. Available: [Accessed 2018].

R. M. Musiime A, "Internet banking,consumer adoption and customer satisfaction," African Journal of Marketing Management, vol. 3.

G. Ben-Dov, "Market2lead," 2011. [Online]. Available:

G. V. D. V. d. P. Wouter Buckinx, "Predicting customer loyalty using the internal transactional database," ELSEVIER, vol. 32, no. 1, pp. 125-134, 2007.

S. &. L. J. Chan, "Customer Relationship Management on Internet and Mobile Channels: An Analytical Framework and Research Directions," Idea Group Inc., 2009.

G. Dowling, "Customer Relationship Management: In B2C Markets, Often Less is More," California Management Review, vol. 44, no. 3, pp. 121-137, 2002.

M. M. N. M. S. K. Z. S. N. A. Faizan Mohsan, "Impact of Customer Satisfaction on Customer Loyalty and Intentions to Switch:Evidence from Banking Sector of Pakistan," International Journal of Business and Social Science, vol. 2, no. 16, pp. 263-270, 2011.

C. W. W. Li, "Customer Retention and Cross Buying," Journal of Financial Services Marketing, vol. 12, 2007.

M. J. Cronin, Banking and Finance on the Internet, New York : Van Nostrand Reinhold: Trove, 1997.

O. O. Gao P, "Consumer Adoption of Internet Banking in Nigeria," The International Banking Review, vol. 7, no. 4, 2008.

P. Taylor, "Big Trends in Community Banking for 2010," America's Community Banker, vol. 3, pp. 16-19, 2008.

J. W. C.P Holland, "Product-market and Technology Strategies in Banking Communication of the association for Computing machinery," New York Journal of Marketing Management, vol. 6, pp. 53-57, 2010.

A. (. Bilal, "Determinants of customer loyalty and proposing a customer loyalty model for the banking sector of pakistan.," Annual Reserach Journal Comsate Institute of Information Technology Abbottabad, Pakistan, vol. 4, pp. 124-139, 2008.