54 No. Boston, August 10, 2017 – Banks and credit unions have been working hard to deliver a better customer experience for their digital channels.But financial institutions are faced with strategic questions and challenges revolving around customer engagement, or customers’ adoption and usage of as well as satisfaction with the digital banking offering. Cambra, J., Melero, I. and Sesé, F.J. (2016), “Can complaint-handling efforts promote customer engagement?”, Service Business, Vol. 32 No. All rights reserved. Primero, se establece una relación directa entre el compromiso y la lealtad del cliente. This scale matches Pansari and Kumar’s (2017) approach of customer engagement and draws on previous measurement scales by Medlin and Green (2009) and Sprott et al. (2007) in the questionnaire design to counter “self-generated validity” by carefully ordering the questions in the survey, using terminology and language respondents would find easy to understand, and ensuring that the constructs analysed did not appear in the questionnaire in the same order as in the hypotheses (antecedents → mediating variable → consequences). Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial & non-commercial purposes), subject to full attribution to the original publication and authors. In the retail banking industry, these authors also found that fully engaged customers bring 37 per cent more annual revenue to their primary bank than actively disengaged customers (Pansari and Kumar, 2017). Moderators of the self-congruity effect on consumer decision-making: a meta-analysis, Effect of entrepreneurial and market orientation on consumer engagement and performance of manufacturing SMEs, Strengthening the satisfaction-profit chain, Journal of the Academy of Marketing Science, On various intraclass correlation reliability coefficients, Los procesos de co-creación y el engagement del cliente: un análisis empírico en medios interactivos, Store satisfaction and store loyalty explained by customer- and store related factors, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour, The process of customer engagement: a conceptual framework, Customer engagement: conceptual domain, fundamental propositions, and implications for research, Frontline employee motivation to participate in service innovation implementation, The impact of customer relationship marketing on the firm performance: a Spanish case. (2010) and Pansari and Kumar (2017) understand customer satisfaction to be an antecedent of customer engagement behaviour (Anderson and Mittal, 2000; Palmatier et al., 2006). 41 No. Self-brand connection analyses the degree to which the consumer’s identity is connected to the brand and plays a major role the consumer’s actual or ideal self-expression (Chaplin and John, 2005; Aguirre et al., 2012). Pansari and Kumar (2017) call for more research to determine the antecedents and consequences of customer engagement. Füller (2010) confirms that satisfaction leads to customer engagement, although these combinations can differ from one customer to another. (2006), “Organisational antecedents of market orientation in the public university system”, International Journal of Public Sector Management, Vol. The results reveal a strong relationship between customer engagement and customer loyalty. Consequently, the purpose of this paper is to ascertain the drivers of customer engagement and its relationship with brand loyalty in the context of retail banking in Ghana.,The authors employed the survey research design. and Podsakoff, N.P. 246-262. This is largely because of the different publics on which each of these streams focuses its analysis. This confirms that, regardless of industry, Customer Engagement is Fang, S.R., Chang, E., Ou, C.C. (2011), Hollebeek and Chen (2014) and Pansari and Kumar (2017) who understand customer engagement as a combination of rational and emotional bonds generated through experiences with the brand/firm. "Customer engagement is the ongoing interactions between company and customer, offered by the company, chosen by the customer." 3, pp. 41-53. The authors collected data from retail banking customers in Ghana using the intercept approach. 23., núm. 378-389. and Estrada, M. (2019), "Increasing customer loyalty through customer engagement in the retail banking industry", Spanish Journal of Marketing - ESIC, Vol. 461-484. https://doi.org/10.1108/SJME-07-2019-0042. (2013), “Are you providing the ‘right’ customer experience? Find out more about banking customer engagement. 2, pp. Self-brand connection is therefore an emotional variable that gathers the extent to which the customer’s personality is connected to the brand’s values. Consumer or customer loyalty may be defined in terms of repeat purchase behaviour or as a consumer attitude to the brand or firm (Kumar et al., 2013; Kamran et al., 2017). Marketing activities for a brand create customer awareness about promoted products and services. 506-523. Bank of America Uses A Chatbot to Connect with Customers. Design/methodology/approach: The authors employed the survey research design. Bank managers must bear in mind that customer satisfaction is the main antecedent of customer engagement and customer loyalty, and both aspects should therefore be carefully considered when designing value propositions for retail bank products and services. Ou, Y.C., Verhoef, P.C. Introduction The purpose of this study is to examine the effect of trustworthiness on customer engagement and brand loyalty in the retail-banking sector. Said customer doesn’t currently have a savings account at your bank. (2018) consider that customers’ engagement with the brand predicts intent to use the brand. In line with recommendations from Jöreskog and Söbom (1993), we first examined the estimation parameters. Self-congruity theory identifies four kinds of self (actual self, ideal self, social self and ideal social self) and posits that the higher the self-congruity between these four types and the attributes of a service or product, the greater the likelihood of the consumer acquiring or purchasing the service or product, and of performing non-transactional behaviours (Sirgy et al., 2008). Branches with a market orientation therefore have an advantage in achieving customer satisfaction and a service experience associated with positive emotions since they can align the internal development of their mechanisms, routines and capabilities with the external efforts they make on their customers’ behalf according to the conditions existing in the market, and maintain the symmetry between them (Zhang and Duan, 2010; Monferrer et al., 2019). Customer satisfaction is “a judgment that a product/service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption-related fulfillment including levels of under- or overfulfillment” (Oliver, 1999). Customer engagement and the relationship between involvement, engagement, self-brand connection and brand usage intent, Demystifying customer brand engagement: exploring the loyalty nexus, Exploring positively-versus negatively-valenced brand engagement: a conceptual model, Hierarchical regression models for interviewer and respondent effects, The role of customer engagement behavior in value co-creation: a service system perspective, Aggregation bias in estimates of perceptual agreement, LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language, Marketing capabilities and firm performance: literature review and future research agenda, International Journal of Productivity and Performance Management, The impact of retail store format on satisfaction-loyalty link: an empirical investigation, Healthcare branding: developing emotionally based consumer brand relationships, Culture, emotion, and well-being: good feelings in Japan and the United States, Are you providing the ‘right’ customer experience? Consumer self-congruity is the psychological theory that underlies self-brand connection as it concerns the coincidence between the consumer’s self-concept and the attributes and values of the service, product and/or supplier (Sirgy, 1985). 57 No. Bank Data-Driven Compliance Deep Customer Insights To be an intelligent bank of the future, banks need to provide innovative solutions and improve customer engagement. Such a change could recapture growth from direct digital banks which, while growing their share of retail deposits from 14% to 28% between 2014 and 2017, 1 have demonstrated a limited ability in establishing primary banking relationships. Most studies define market orientation according to one of two seminal conceptualisations, from either a cultural or a behavioural approach. We eliminated the indicators that did not satisfy the strong convergence condition, that is, those having individual standardised coefficients (λ) lower than 0.6 and an average standardised factor loading of less than 0.7 (Steenkamp and Van Trijp, 1991; Hair et al., 2010). This implies that expectations and emotions are generated at two different levels: corporate and branch (Ou et al., 2017). 27 No. Sufficient guarantee of convergent validity was demonstrated as the correlations were relatively high and significant. Jr (1979), “A paradigm for developing better measures in marketing”, Journal of Marketing Research, Vol. 168-180. The study has several limitations. Customer expectations, technological capabilities, regulatory requirements, demographics and economics are together creating an imperative to change. To achieve this goal, banks have recognized that digital transformation is critical, as it can enable them to provide new and better products and services – as well as to Again, the ICC (1) values exceeded the threshold value of 0.12 (James, 1982), reaching 0.30, 0.28, 0.34, 0.30, 0.27 and 0.32 for customer perceptions of satisfaction, self-brand connection, emotions during the service (pleasure and arousal), engagement and loyalty, respectively; the variability ratio can therefore be considered sufficient. Following this process three indicators were removed: RES3, CUL3 and LOY3. Podsakoff, P.M., Mackenzie, S.B., Lee, J.Y. Financial Services Business Leader Research Team, Reset Your Business Strategy Amid COVID-19. 506-528. Palmatier, T.W., Dant, R.P., Grewal, D. and Evans, K.R. If the customer has a positive level of satisfaction, they will be likely to repurchase, and if emotions are positive, they should generate non-transactional behaviours (Verhoef et al., 2010; Klaus et al., 2013; Chahal and Dutta, 2015). Brodie, R.J., Hollebeek, L.D., Juric, B. and Ilic, A. 8, pp. The average within-group inter-rater reliability values, rwg(j), for those constructs were 0.80, 0.70, 0.84, 0.79, 0.70 and 0.80, respectively; all these values are equal to or above the commonly accepted threshold of 0.7, suggesting sufficient within-group agreement to aggregate the data at branch level. 4, pp. Moreover, our study demonstrates that adopting an intensive marketing strategy at the internal branch level, conceptualised through the construct of market orientation, favours a higher level of customer satisfaction (0.163) and more positive emotions in the provision of the service (0.203). Although the bank studied is large enough to be included in the list of Spain’s top ten banks, we analysed a specific geographical area that did not cover all its markets. Table IV presents a summary of the results following the factor and reliability tests. 14-26. 985-1000. The case of Banca popolare di Bari”, International Journal of Bank Marketing, Vol. As described above, in the process of customer interaction with the branch, the factors of satisfaction and emotions during the service are identified as direct antecedents of the customer’s engagement (Ou et al., 2017; Pansari and Kumar, 2017). This article was written by Nigel Garrett, Business Development Director at Workplace.. 92-104. 3 Tipo de documento The bank continued to invest in digital transformation and … One such area of recent interest is the role customer engagement plays in forming customer loyalty (Kumar et al., 2013; Thakur, 2016; Kosiba et al., 2018; Moliner et al., 2018; Parihar et al., 2019). 9, pp. 19 No. and Chen, T. (2014), “Exploring positively-versus negatively-valenced brand engagement: a conceptual model”, Journal of Product and Brand Management, Vol. Prior to administering the questionnaires, the bank’s senior marketing managers participated in group activities to verify that the questionnaires aligned with the reality of the firm. 71 No. These actions take the form of purchases, incentivised referrals by the customer, conversations about the brand and the customer’s feedback on social media and ideas about how the firm could improve performance (Kumar et al., 2013). ©2021 Gartner, Inc. and/or its affiliates. and De Rosa, F. (2009), “The different roles of switching costs on the satisfaction-loyalty relationship”, International Journal of Bank Marketing, Vol. Sirgy, M.J., Lee, D.J., Johar, J.S. Professional interviewers conducted the interviews for both the studies to ensure that a standard structure was followed, and that respondents fully understood all the questions. As noted above, Pansari and Kumar (2017) understand customer attitudinal loyalty as a consequence of customer engagement. If these interactions are reduced to a minimum, the firm-customer connection will essentially be of a rational nature, and therefore not as sustainable. divided as follows; literature review, research model and hypotheses, methodology, struc- 17 No. Customer engagement involves customer willingness to interact with banks and is arguably a prerequisite for customer advocacy. We followed the recommendations of Ye et al. The literature therefore understands customer engagement as a psychological predisposition, an emotional connection with a brand or a firm that generates consumer loyalty. Here are 10 examples of innovative banking customer experiences. This aspect is generally considered in the literature to be covered by the construct of market orientation (Kohli and Jaworski, 1990; Narver and Slater, 1990). The combination of the branding strategy at the corporate level and the relationship marketing strategy at branch office level creates a situation in which customer engagement and customer loyalty can thrive. 86, available at: http://dx.doi.org/10.1016/j.jbusres.2017.06.001. Although this provides a fascinating field of study from the co-creation perspective, it poses new challenges in the engagement era. 170-192. First, it would be useful to analyse the causal model according to customer age. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Nov 20, 2014 - If you truly value your customers, give them the banking experience they deserve. Consequently, the purpose of this paper is to ascertain the drivers of customer engagement and its relationship with brand loyalty in the context of retail banking in Ghana.,The authors employed the survey research design. Two key dimensions for achieving better customer engagement … 184-206. Salesforce BrandVoice ... the impact of technology on customer relationships in the banking ... represent the highest-priority channels for growing SMB engagement … Han, J.K., Kim, N. and Srivastava, R.K. (1998), “Market orientation and organizational performance: is innovation a missing link?”, Journal of Marketing, Vol. 52 No. (2014), adapted from earlier scales devised by Escalas and Bettman (2005). 336-356. El trabajo presenta diversas limitaciones como son el empleo de datos transversales, su aplicación en el mercado español, la inclusión de exclusiva de clientes con experiencia con un banco específico y no operan exclusivamente online. Lam, S.K., Kraus, F. and Ahearne, M. (2010), “The diffusion of market orientation throughout the organization: a social learning theory perspective”, Journal of Marketing, Vol. In today’s challenging economic climate, the effective engagement of employees in the retail industry is an increasingly vital requirement to maintain exemplary customer service levels and maximise sales. Clearly, the strategic parameters of the online environment do not coincide with those of the branch office, but the essence of customer engagement (customer satisfaction and customer emotions) remains the same. (2014), “Internal market orientation, market capabilities and learning orientation”, European Journal of Marketing, Vol. Kamboj, S. and Rahman, Z. De Matos, C.A., Henrique, J.L. R.J., Hollebeek ( 2011 ), “Effect of entrepreneurial and market orientation on profitability”. Measures in marketing”, Journal of Marketing Research, Vol S.B., Lee,.! Workforce engagement for improving retail banking industry the audiences targeted and the messages.! In the branch channel and workforce engagement for improving retail banking customer, offered by company... Dimensions for achieving better customer engagement customer engagement in retail banking and reliability tests banking, brand loyalty in retail. And Evans, K.R conducted with the public university system”, International Journal Marketing.: conceptual domain, fundamental propositions customer engagement in retail banking and brand meaning”, Journal of Marketing Science, Vol two different:. There is a customer Management strategy that firms should encourage this strategy in an era increased..., branch market orientation according to the most commonly asked questions Here copyright © 2019, Diego Monferrer, Angel. Omni-Channel customer engagement is the ongoing interactions between company and customer, especially those requiring strong identity.... 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