IMPACT OF COMPLAINT HANDLING AND CUSTOMER EMPOWERMENT ON CUSTOMER LOYALTY; MEDIATING EFFECT OF CUSTOMER SATISFACTION

Abstract

This study aims to investigate the impact of Customer Relationship Management (CRM) practices, specifically complaint handling and customer empowerment, on Customer Loyalty (CL) in Pakistan's banking sector, with customer satisfaction (CS) serving as a mediating variable. This research adopts an online survey approach, targeting bank customers in the DG Khan District of Pakistan, selected through convenience sampling. Data will be collected using a structured questionnaire based on a 5-point Likert scale. The questionnaire link will be shared with the customers of selected banks. A total of 380 respondents are proposed for this study. The Partial Least Squares (PLS) technique will be employed to test the hypothesized research framework. This study offers insights into improving client loyalty through CRM techniques, with strategic implications for the banking industry. The findings are expected to emphasise the necessity of adopting CRM features, such as complaint resolution and consumer empowerment, into business plans to increase customer loyalty. This study helps to understand the relationship between CRM characteristics, specifically complaint handling, customer empowerment, and customer loyalty in the banking industry. It highlights how these CRM features affect client loyalty and offers advice for banks looking to increase customer relationships and satisfaction. This study expands our understanding of CRM in Pakistan's banking sector by investigating the roles of complaint processing and consumer empowerment in generating customer loyalty.