Abstract

http://ssrn.com/abstract=1373860
 


 



Building Customers' Affective Commitment Towards Retail Banks: The Role of Crm in Each 'Moment of Truth'


Kalyani Menon


affiliation not provided to SSRN

Aidan O'Connor


ESCEM School of Business and Management

February 14, 2007

Journal of Financial Services Marketing, Vol. 12, No. 2, p. 157, 2007

Abstract:     
This paper argues that retail banks need to focus more strongly on components of their Customer Relationship Management (CRM) strategy that will generate customer affective commitment and lead to an increase in customer retention, share of wallet, and advocacy. It is suggested that affective commitment is generated during' moments of truth' or episodes of interpersonal interaction between customers and bankers. As shown in social psychology, effective interpersonal interactions are a function of the assertiveness and affiliation demonstrated during the interaction. Applying this to retail banking, bankers should mine their databases to identify customers in terms of their levels of profitability and longevity, and should deliver levels of assertiveness and affiliation appropriate to each customer. Testable research propositions are developed regarding how affective commitment might evolve during a customer ' s tenure with a retail bank, when bankers should deliver assertiveness and/or affiliation to customers of differing longevity and profitability, and how these strategies to increase affective commitment will impact retention, share development, and advocacy. Overall, the call is to complement the emphasis on the use of high-tech CRM strategies that generate huge databases with a more high-touch strategy that will indicate to bankers how to interact with each individual customer.

Number of Pages in PDF File: 12

Keywords: Customer relationship management , CRM , banker - customer interaction , affective

JEL Classification: D10,D11,D12, G21, M31

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Date posted: April 8, 2009  

Suggested Citation

Menon, Kalyani and O'Connor, Aidan, Building Customers' Affective Commitment Towards Retail Banks: The Role of Crm in Each 'Moment of Truth' (February 14, 2007). Journal of Financial Services Marketing, Vol. 12, No. 2, p. 157, 2007. Available at SSRN: http://ssrn.com/abstract=1373860

Contact Information

Kalyani Menon
affiliation not provided to SSRN
Aidan O'Connor (Contact Author)
ESCEM School of Business and Management ( email )
11 Rue de l'Ancienne Comédie
Poitiers, 86001
France
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