The Impact of Social Media on Customer Relations in Banking Sector of Sri Lanka

Abstract

Technology has attracted almost all the industries around the world. Social networking sites are becoming most important communication channels that changes the way that people interact with others and managing their businesses. Today, most of the organizations adapt social media to achieve their marketing objectives and develop customer relations. Thus, the main aim of this study is to examine the impact of social media on customer relations in banking industry in Sri Lanka. This research investigated the availability of Information Strategy, Feel and Serve, Trust and Loyalty and Advertising and Online Presence in affecting the banking customer relations. Having quantitative nature, this study collected data from 150 respondents (banking customers) using a structured questionnaire. Both descriptive and inferential statistical analytical techniques were used to analyze gathered data. Particularly, multiple linear regression analysis was used to test the hypotheses. SPSS software was employed to conduct above mentioned data analysis. This research provides a clear indication about the impact of social media on customer relations in banks. Moreover this study recommends the implementing of this suitable strategy in the industry to attract more customers while satisfying the current customer base.