The Impact of Customer Relationship Marketing on Customer Loyalty

Abstract

This study aims to examine the impact of CRM on customer loyalty and to explore relationship marketing accuracy in four dimensions such as trust, communication, commitment, and conflict handling in the banking system. Moreover, it examines the direct and indirect relationships between CRM variables and the mediating role of trust between them. Because most bank-customer interactions are time-varying and dynamic, and there are only a few studies related to CRM in the Albanian banking system, this study tends to contribute further to this field. Random sampling technique was used to collect data from 440 bank customers, who completed a structured questionnaire in Google Forms. Structural equation modelling (SEM) in Smart PLS 4 software was used to analyse the completed questionnaires. The results have revealed that CRM impacts positively and significantly the loyalty of bank customers, thereby supporting all the hypotheses. Moreover, the data analysis showed that trust plays a mediating effect between CRM variables.