The Impact of Customer Experience Management on Customer Loyalty in the Banking Industry in Sri Lanka

Abstract

This research examines the relationship between customer experience management (CEM) practices and customer loyalty in the context of the Sri Lankan banking sector. As the financial services sector becomes increasingly competitive, understanding the dynamics of customer loyalty has become critical to maintaining and improving market conditions. Therefore, the purpose of this research is to study the impact of customer experience management (virtual interactions, physical interactions, and service interactions) on customer loyalty in the banking industry in Sri Lanka. The study observed customer experience management as an independent variable and customer loyalty as the dependent variable. This is a quantitative research study in which a structured questionnaire was distributed among 384 bank account holders under the convenience sampling method. Correlation and multiple linear regression analysis were employed to analyse the hypotheses. The results revealed that customer experience management positively influences customer loyalty in the banking industry. Finally, the findings of this research aim to contribute to existing knowledge by providing practical insights for banks operating in Sri Lanka and similar emerging markets. The study has practical implications for how banks and other financial institutions gain competitive advantage by managing the customer experience in a volatile business environment.