Changing Dynamics Of Customer Loyalty: A Metamorphical Study Of Indian Retail Banking Sector

Abstract

Existing customer loyalty faces new challenges due to the rapidly changing business environment, digital disruption, and socio-economic and demographic changes. There has been a continuous push from service providers to retain existing customers but rising
competition, availability of information through the digital revolution, and rapidly changing customer expectations are some significant roadblocks on the loyalty path. Service providers are trying hard to meet customer expectations; they are also working on bringing customer delight by strengthening relationship bondingwith customers. Customer experience is a new buzzword in the market, followed by customer delight and customer centricity, which came earlier. However, the ultimate objective is to emerge as a
winner by gaining more maximum share of heart, a share of mind and finally, the maximum share of wallet from customersto bring better business numbers and profitability. A loyal customer plays a vital role; through positive WOM (word of mouth), he cansignificantly contribute to the company's business growth by influencing his friends and families with his strong recommendations. Retail banking is one segment wherein maximum business comes through recommendations from existing customers and helps bank franchises grow better without much marketing expenditure.