Building customer loyalty in digital banking A study of bank staff's perspectives on the challenges of digital CRM and loyalty

Purpose - The purpose of this paper is to investigate the perceptions among representatives from various established major Swedish banks in how they experienced the digitalisation process and its impact on customer relations. Design/methodology/approach - Data were gathered through a series of semi-structured in-depth interviews with managers representing different banks with profound insight in the banks' digitalisation process and its effects on customer relations/satisfaction and digitalisation. Findings - The results showed that half of the respondents experienced the same area posing the greatest challenge. This was rooted in the perceived insecurity around what the bank assumed to know about its customers' proficiency and experiences, and what the customers appeared to actually know. Research limitations/implications - This study was conducted as an Interpretative Phenomenological Analysis (IPA) study of various major Swedish banks, which may limit the external validity of its results. Other limitations are also discussed in the paper. Practical implications - By identifying the aspects of a digital banking that bank managers perceive to be more advantageous or challenging towards cultivating the relationship with its customers, bank managers should garner an awareness of being able to more effectively develop appropriate strategies in addressing the bank's customers. Originality/value - The area is vastly under-researched. The study contributes to the literature of digital channels and its perceived effects on customer loyalty from a managerial perspective. The results show that some of the present customer loyalty theory needs to be revised in order to accommodate for the era of digitalisation.