Customer loyalty on recurring loans

Abstract

Customer Loyalty has long been a pressing issue in today's competitive commercial arena. It is increasingly important as companies emphasize more on their customer relationship management. In this paper, we investigate the segmentation of bank customers in terms of their loyalty level; the sample dataset is the personal finance customers from a bank. Based on a loyalty definition, a model on the customer loyalty will be formulated. This loyalty function classifies customers into four levels. Statistical and neuro-fuzzy techniques will also be deployed to explore the relationships of customer demographics, loan approval information and transaction information towards customer loyalty. © Springer-Verlag 2003.