Measuring customer satisfaction in banking industry plays essential role for increasing market share and profitability. In this paper, we present an empirical investigation to measure the effect of customer relationship management (CRM) on customer loyalty in Iranian banking industry. The study aims to understand whether implementation of a good CRM could increase the quality of services. The study designs a questionnaire in Likert scale and distributes it among 65 selected customers who do their banking activities with Bank Melli Iran in city of Semnan, Iran. Cronbach alpha has been calculated as 0.939, which is well above desirable level. Using t-student test, the study has determined that implementation of CRM could increase customer loyalty and quality of services.
During the past two decades, there has been growing trend in Iranian banking industry due to change in banking regulations. Private sector has grown rapidly and there have been several new banks on the market, which has created very competitive market. Therefore, customer loyalty is the key factor for running a successful banking business and customer relationship management (CRM) appears to be important for the success in this industry. The primary objective of this paper is to investigate the relationship between CRM and customer loyalty in one of the oldest Iranian banks named Bank Melli Iran. The proposed study prepares a questionnaire in Likert scale and distributes it among some regular customers of this bank. The preliminary results of this survey have indicated that consumer’s gender, age and educational background had no meaningful impact on quality of services. In other words, people with different personal characteristics expect the same quality of services from banking industry and there is a positive and meaningful relationship between quality of services and customer loyalty.
Structure analysis plays an important role on increasing the efficiency of banking industry. A change in structure of business in this industry could change the profitability, significantly. The proposed study of this paper aims at structural analysis and comparative advantages for a governmental bank in a province of Semnan, Iran called Melli bank. The proposed study considers the effectiveness of four saving plans including current, loaned with no interest, short and long term based in three periods. It applies the change of location-share model, which includes provincial growth influence, structural growth and competitive growth as the determinant variables in saving rate. Findings indicate the disproportionate growth of saving rate in the Melli bank toward the other banks of the province in every 3 terms of the study. The research results show that short time saving in 2001 and 2004, loaned without interest and short term savings in 2001 and 2008, loaned without interest and long term savings in 2004 and 2008 had negative structural changes which indicate that the combination of discussed saving wasn’t desirable, but other savings benefits of desirable combination.