Relationship Marketing: Impact on Bank Customers’ Satisfaction

Abstract

In a country, banking sector servers as the foundation on which the pillars of economic growth and development can be constructed. With the major reforms in banking sector, the scenario of bank market has been changed. Target market of banking sector has become highly competitive, dynamic and fragmented. Hence, there is a need for a shift from the transactional marketing strategy to relationship-based marketing strategy in all the banks. This study reviewed the conceptand need of relationship marketingin banks andattempts to identify significant dimensions of relationship marketing and their impact on customer satisfaction. The paper concludes on the basis of extensive literature review thatrelationship marketing dimensions like quality service, tailored products, communication, trust, commitment, empathy, social bonding, financial bonding, cooperation, andtechnology should be taken into serious consideration by banks to enhance the level of customer satisfactionwhich in turn increases customer loyalty and retention rate.Consequently, both the parties get mutual benefits.