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DIGITAL CUSTOMER ENGAGEMENT DIMENSIONS IN DIGITAL TRANSFORMATION AND A FRAMEWORK SUGGESTION FOR RETAIL BANKING

Year 2019, Volume: 6 Issue: 3, 239 - 248, 28.07.2019
https://doi.org/10.15637/jlecon.6.014

Abstract

Although
there are many implications regarding customer experience, retention, loyalty
etc. the comprehensive approach for digital customer engagement still needs
more attention. Digital platforms leave customer alone with his or her
community without bank’s involvement. This approach requires a good business
understanding that will match the CE network with digital capabilities. Since
the customer engagement is one of the four pillars of digital transformation,
retail banks should start to measure digital CE score based on each customer
group as a holistic approach to cover full cycle.



 Transactional
customers who have low relational and emotional exchange will switch the brand
easily since they have big price and satisfaction sensitivity. Delighted
customers have a good commitment level but requiring interaction and
relationship with the brand. Loyal customer’s commitment level changes easily
based on market conditions, however they have a good relationship level with
the brand. Fans have good relationship and commitment level with the brand.
They advocate for the brand easily.

References

  • BOMPOLIS, C.G.; BOUTSOUKI, C. (2014), Customer Relationship Management in the Era of Social Web and Social Customer: An Investigation of Customer Engagement in the Greek Retail Banking Sector, Procedia - Social and Behavioral Sciences (148), 67 – 78.
  • BRODIE, J. R.; HOLEBEEK, L. D. and JURİC, B. (2011), Customer Engagement: Conceptual Domain, Fundamental Propositions, and Implications for Research, Journal of Service Research,252-271.
  • GREENBERG, P. (2010). CRM at the Speed of Light: Social CRM Strategies, Tools, and Techniques for Engaging Your Customers,4th Edition, McGraw Hill, New York.
  • HALLOWELL, R. (1996), The Relationships of Customer Satisfaction, Customer Loyalty, and Profitability: An Empirical Study, International Journal of Service Industry Management, 7(4), 27-42.
  • HO, J.; CHOWDHURY, S. and EVANS, N. (2018), Success Factors for Digital Transformation in Banks, Korn Ferry Institut.
  • Holeebek, Consumer Brand Engagement in Social Media: Conceptualization, Scale Development and Validation,2013
  • KOTLER, F.; KARTAJAYA, H. and SETIAWAN, I. (2010), Marketing 3.0: From Customers to Human Spirit, John Wiley & Sons.
  • MENON, K. and O’CONNOR, A. (2007), Building Customers’ Affective Commitment Toward Retail Banks: The Role of CRM in Each ‘Moment of Truth’, Journal of Financial Services Marketing, 12(2), 157-168.
  • NEWTON, A. (2018). Hype Cycle for Digital Banking Transformation, gartner.com/en/documents/3884070.
  • ROSS, W.J. ; SEBASTIAN, I.M and BEATH, M.J. (2017), How to Develop a Great Digital Strategy, MIT Sloan Management Review, 58 (2) , 7-9.
  • SASHI, C.M. (2012), Customer Engagement, Buyer-Seller Relationships, and Social Media, Management Decision, 50 (2), 253-272.
  • SEBASTIAN, I.M.; MOCKER, M.; ROSS, J.W.; MOLONEY, K. G.; BEATH, C.and FONSTAD, N.O. (2017), How Big Old Companies Navigates Digital Transformation, MIS Quarterly Executive,16(3), 197-213.
  • STURGILL, N. and TORNBOHM, C. (2018). How Bank CIOs Can Use Robotic Process Automation to Improve Customer Experience, gartner.com.
  • TESFOM, G. and BIRCH, N.F. (2011), Do switching barriers in the retail banking industry influence bank customers in different age groups differently? Eastern Washington University, Bellevue, Washington, USA.

DIGITAL CUSTOMER ENGAGEMENT DIMENSIONS IN DIGITAL TRANSFORMATION AND A FRAMEWORK SUGGESTION FOR RETAIL BANKING

Year 2019, Volume: 6 Issue: 3, 239 - 248, 28.07.2019
https://doi.org/10.15637/jlecon.6.014

Abstract

Although
there are many implications regarding customer experience, retention, loyalty
etc. the comprehensive approach for digital customer engagement still needs
more attention. Digital platforms leave customer alone with his or her
community without bank’s involvement. This approach requires a good business
understanding that will match the CE network with digital capabilities. Since
the customer engagement is one of the four pillars of digital transformation,
retail banks should start to measure digital CE score based on each customer
group as a holistic approach to cover full cycle.



 Transactional
customers who have low relational and emotional exchange will switch the brand
easily since they have big price and satisfaction sensitivity. Delighted
customers have a good commitment level but requiring interaction and
relationship with the brand. Loyal customer’s commitment level changes easily
based on market conditions, however they have a good relationship level with
the brand. Fans have good relationship and commitment level with the brand.
They advocate for the brand easily.

References

  • BOMPOLIS, C.G.; BOUTSOUKI, C. (2014), Customer Relationship Management in the Era of Social Web and Social Customer: An Investigation of Customer Engagement in the Greek Retail Banking Sector, Procedia - Social and Behavioral Sciences (148), 67 – 78.
  • BRODIE, J. R.; HOLEBEEK, L. D. and JURİC, B. (2011), Customer Engagement: Conceptual Domain, Fundamental Propositions, and Implications for Research, Journal of Service Research,252-271.
  • GREENBERG, P. (2010). CRM at the Speed of Light: Social CRM Strategies, Tools, and Techniques for Engaging Your Customers,4th Edition, McGraw Hill, New York.
  • HALLOWELL, R. (1996), The Relationships of Customer Satisfaction, Customer Loyalty, and Profitability: An Empirical Study, International Journal of Service Industry Management, 7(4), 27-42.
  • HO, J.; CHOWDHURY, S. and EVANS, N. (2018), Success Factors for Digital Transformation in Banks, Korn Ferry Institut.
  • Holeebek, Consumer Brand Engagement in Social Media: Conceptualization, Scale Development and Validation,2013
  • KOTLER, F.; KARTAJAYA, H. and SETIAWAN, I. (2010), Marketing 3.0: From Customers to Human Spirit, John Wiley & Sons.
  • MENON, K. and O’CONNOR, A. (2007), Building Customers’ Affective Commitment Toward Retail Banks: The Role of CRM in Each ‘Moment of Truth’, Journal of Financial Services Marketing, 12(2), 157-168.
  • NEWTON, A. (2018). Hype Cycle for Digital Banking Transformation, gartner.com/en/documents/3884070.
  • ROSS, W.J. ; SEBASTIAN, I.M and BEATH, M.J. (2017), How to Develop a Great Digital Strategy, MIT Sloan Management Review, 58 (2) , 7-9.
  • SASHI, C.M. (2012), Customer Engagement, Buyer-Seller Relationships, and Social Media, Management Decision, 50 (2), 253-272.
  • SEBASTIAN, I.M.; MOCKER, M.; ROSS, J.W.; MOLONEY, K. G.; BEATH, C.and FONSTAD, N.O. (2017), How Big Old Companies Navigates Digital Transformation, MIS Quarterly Executive,16(3), 197-213.
  • STURGILL, N. and TORNBOHM, C. (2018). How Bank CIOs Can Use Robotic Process Automation to Improve Customer Experience, gartner.com.
  • TESFOM, G. and BIRCH, N.F. (2011), Do switching barriers in the retail banking industry influence bank customers in different age groups differently? Eastern Washington University, Bellevue, Washington, USA.
There are 14 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Yakup Akgül This is me 0000-0002-7881-3613

Hadi Rubacı This is me 0000-0003-3582-2779

Publication Date July 28, 2019
Published in Issue Year 2019 Volume: 6 Issue: 3

Cite

APA Akgül, Y., & Rubacı, H. (2019). DIGITAL CUSTOMER ENGAGEMENT DIMENSIONS IN DIGITAL TRANSFORMATION AND A FRAMEWORK SUGGESTION FOR RETAIL BANKING. Journal of Life Economics, 6(3), 239-248. https://doi.org/10.15637/jlecon.6.014