Abstract
This study aims to investigate the mediating role of customers' satisfaction on the effect of customer relationship management on long-term customers' loyalty in the banking sector in the Palestinian Territory. Using advanced statistical methods. This study supports that there is a high level in implementing the CRM, customers' satisfaction, and long-term customers' loyalty. It showed that these three variables: CRM, customers' satisfaction, and long-term customers' loyalty have a significant role on the Banking sector. CRM and its dimensions, and both of customers' satisfaction, and long-term customers' loyalty are positively significant correlated. Also, finds that there is no role for customers' satisfaction as a mediator variable in enhancing the impact of CRM on long-term customers' loyalty. Moreover, based on SEM the study shows that there is a direct impact of CRM system integration and customers satisfaction on long-term customers' loyalty, whereas there is a direct impact for customers' database and CRM system integration on customers' satisfaction. The scholars find that the Palestinian local banks should pay more efforts to improve their competences to enhance the quality of service and their employees' behavior level. On the other side, they need to keep their customers database updated and to be aligned with the cutting edge technologies to provide better service for customers, which is appropriate and meet their needs by obtaining the accurate information about their preferences in order to build a strong competitive advantage that is hard to imitate, this leads to build a strong relationship with customers.
Highlights
In Palestine, banks play a vital role in the Palestinian local economy; it helps them with the financial aid in order to secure their trade and business fund
A one sample t-test was conducted to examine the first null hypothesis (CRM doesn’t play a significant role in the banking sector in North West Bank (NWB)-Palestinian Territory (PT)), with a 95% level confidence, table 2 shows that the Customer relationship management (CRM) was significantly different from 3.67, t= 31.445, p=0.000
A One sample t-test used to examine the second null hypothesis (Customers' satisfaction doesn’t play a significant role in the banking sector in NWB-PT), with a 95% level confidence, table 3 shows that the customers satisfaction was significantly different from 3.67, t= 25.008, ass.ccsenet. org p=0.000
Summary
In Palestine, banks play a vital role in the Palestinian local economy; it helps them with the financial aid in order to secure their trade and business fund. Local and foreign banks in Palestinian Territory (PT) as in other countries are providing citizens with the financial facilities that meet their needs and expectations; this leads banks to compete with each other in the local market to provide the best offerings for customers. Banks dedicate the resources and competences to enhance the relationships with customers through decision-making process, marketing, customized services and re-pricing. Customer relationship management (CRM) guides banks in classifying the various segments of customers due to their profitability and the business type. One of the major roles of CRM is to create a better understanding of customers' retention and identifying associated risks with customers' loans. CRM has a major role in the banks by supporting them to capture customers' data and boost the customer information accessibility enabling the bank branches to recover their business identity. This study aims to emphasize the importance of building and maintaining good relations with customers which could result in a better customer satisfaction and better CRM system management (Iriqat & Abu Daqar, 2017a)
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