Developing Customer Loyalty: A Case-Study of National Bank of Oman
16 Pages Posted: 17 Sep 2003
The study examines the key factors of customer loyalty in the context of a large retail banking organization - National Bank of Oman (NBO).
The scope of the study includes review of prescriptions available in the literature, an objective review of the management policies and programs relating to front-end and back-end operations, particularly with regard to corporate governance, technological interventions and human resource policies aimed at developing customer loyalty for sustainable competitive advantage.
Further, the article probes into whether the practices of NBO reflect extant theories and also to identify gaps between both practice and theory.
The findings suggest that the bank besides applying most of the prescriptions in the form of core and front-end loyalty factors, is practicing back-end loyalty factors to enhance creditability, transparency, reliability through good corporate governance in the present competitive environment.
The banking industry could benefit from applying some of NBO practices after suitably adapting the same to take account of variations in their business contexts.
Keywords: e-banking, retail banking, customer loyalty, front-end operations, back-end operations, competitive advantage, corporate governance
JEL Classification: G2, G21
Suggested Citation: Suggested Citation