Study the Impact of Customers’ Loyalty and Satisfaction on Bank’s Financial Performance (A Case Study of Resalat Bank)
Sajad Shah Hosseini
Department of Management, Islamic Azad University, Sanandaj Branch, Iran
Behrooz Shahmoradi *
Faculty Member of National Research Institute for Science Policy, Tehran, Iran
*Author to whom correspondence should be addressed.
Abstract
Purpose: This study attempts to provide a holistic approach of the Iran's banking sector
and how it's financial operates by focusing on customer's loyalty and satisfaction.
Design/Methodology/Approach: Using standard questionnaires a survey was carried out in the banking sector of Iran in order to collect information regarding customer satisfaction and loyalty, and their impact on financial performance. To test the customer satisfaction and loyalty the questionnaires spread between the customers of Resalat Bank and to test the financial performance it has been spread between staffs, assistants, and managers of the bank. At the end structural equation modelling was used to test the related hypotheses.
Findings: The final findings of the research indicated the positive and significant impact of loyalty and satisfaction of the customer on the financial performance of Resalat Bank.
Originality/Value: There are some few studies that have incorporated customer satisfaction, loyalty and the financial performance of banks, therefore, in this study can contribute in this regard. To take it one step further, some more factors were included to present a more holistic approach of how customer satisfaction and loyalty are enhanced.
Keywords: Customer satisfaction, loyalty, financial performance, banking