The Role of Customer Knowledge Management, Value, and Retention in CRM: Enhancing Satisfaction and Long-lasting Loyalty Insights from Structural Equation Modeling

Abstract

Purpose: Customer Relationship Management maintains the existing customers and targets potential customers with personalized and attractive offers for their services and products, enhancing sales development. Therefore, the overall goal of this study is to observe the influence of CRM on customer satisfaction and its impact on customer loyalty in selected public sector banks in Bihar.

Methodology: To achieve the research objective, essential data were collected through the five-point Likert Scale of questionnaires through a convenient random sampling method. An exploratory Factor Analysis test was employed to determine the sample adequacy and measurement model to confirm the extracted variables, then Structural Equation Modeling to check the hypotheses of this study using SPSS 21 and AMOS 23.

Findings: Customer satisfaction is influenced by customer retention, value, and knowledge management, and customer satisfaction has an intensely favorable effect on customer loyalty. Public sector banks such as SBI, Bob, and PNB are enriched to implement CRM constantly and adequately to achieve competitive improvement through building long-term, cost-effective relationships with their customers and accomplishing customer loyalty (Kiyar et al., 2023).

Implications: The model provides a quantitative basis for implementing CRM in the banking industry as variables studied. Further, the literature review exposed an important knowledge gap and established a testable agenda for evolving the CRM concept from the banking perspective. Knowingly forthcoming investigation potential exists through framework repetition, extension, and realistic validation.

Originality: This study comprehensively studied existing literature to find an innovative assessment measurable model absent in earlier studies. It provides a robust conceptual framework and rationale for ongoing scholarly investigation of the impact of CRM on customer satisfaction and its impact on loyalty in the banks.