Impact Of E-CRM on E-Loyalty with the Mediating Effect of E-Trust in Private Sector Banks in Western Province, Sri Lanka

Abstract

This study aims to look at how E-CRM has an impact on E-Loyalty with E-Trust in-between, in the private sector banks within the Western Province of Sri Lanka. Given the great uptake of technology in the banking industry in delivering customer value, it was crucial to establish the factors influencing customer loyalty in an electronic context. This research utilizes a quantitative research strategy to test the proposed hypotheses through a survey that received 385 responses from participants who completed a structured online questionnaire, most of which was shared on social media platforms and email addresses. In general, this approach guarantees the inclusion of as many customer segments as it is possible to sample the Internet banking service targets. All collected data in this study were analyzed statistically using correlation, regression, and mediation analysis through the Statistical Program for Social Sciences (SPSS). The results indicate that E-CRM has a positive significance with E-Loyalty at 0.712 at a significance level less than 0.01 and positive significance with E-Trust at 0.650 and a significance level less than 0.01. Moreover, the findings show that E-Trust accounts for E-Loyalty in a highly positive manner (r = 0.662, p < 0.01). Analysis of the regression data shows that E-CRM accounts for 57.6% of the variations in E-Loyalty, which points out to a strong suggestion that efficient E-CRM strategies are central to customer retention in the developed digital banking environment. Effects mediation test also supports our hypothesis regarding E-Trust mediating effect between E-CRM and E-Loyalty because the BootLLCI was 0.146 and BootULCI was 0.332, in other words they were greater than zero. From this perspective, the present work enriches the general body of knowledge of customer relationship management, by proposing an expanded Technology Acceptance Model (TAM) that includes E-Trust as a crucial mediator within the context of digital banking. It stresses the features of openness, dependability, security, and responsibility in using and handling data as the foundation for gaining customers’ trust in an online world. The study’s insight holds the following major implications for practitioners in the banking industry, especially as it relates to the development of a sound E-CRM that can forge lifelong relationships with the customers. For this reason, E-CRM frameworks need to consist of various guidelines and policies that should be adopted by the bank’s managers including the integration of friendly interfaces, accordant security, and individual services for every customer. Also, the study explores how organizational relationship factors require customer-specific trust-building measures including promises, repeat communications, and other relationship building activities. These measures do not only add value to the customer but also offer competitive advantages such as growing the retention rates of customers and gaining more value holistically. Therefore, this study shows the possible impacts of E-CRM as a competitive weapon in the twenty first century to enhance customer loyalty. It outlines directions for applying E-CRM and E-Trust in the identified private sector banks in Sri Lanka to achieve sustainable development and competitiveness in the developing globalization environment. Conclusively, this study leads future studies to replicate the work to another industry and/or another geographic area of the world.