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Factors Important for Banks in Attracting and Retaining Customers

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Reliability and Statistics in Transportation and Communication (RelStat 2020)


Nowadays the vast majority of banks are struggling to attract new customers and strengthen existing customers’ loyalty. Bank customers are moving from one bank to another and as a result, the total number of customers is increasing at some banks and decreasing at others. The aim of the present research is to recognize and determine factors important for customers when selecting a bank.

The research was conducted in the Latvian banking sector, and primary data were gathered by quantitative and qualitative research methods. We have carried out a detailed survey of 587 private persons as well as a focus group discussion. As a result, 44 factors impacting customer behaviour were recognized and analysed. The most substantial criteria in selecting a bank were discovered in accordance with customers’ evaluations, along with the least essential factors. The whole set of these factors could be taken into account in the process of developing a strategic plan for marketing activities. The five most essential factors are as follows: service quality; convenient distance banking services (online banking, telephone banking, mobile banking); a bank’s reputation; financial stability of a bank; and finally, a bank’s service costs. Statistically significant differences were observed in customer behaviour depending on age, educational background, and place of residence. The results of the research were also compared with identical studies in other countries.

The results could be valuable for top management of banks and other practitioners, offering several recommendations for comprehending customer behaviour and planning marketing activities more effectively.

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The authors would like to express sincere gratitude to the experts who participated in the interviews, and the respondents who provided valuable information and support for the present research, supplying valuable empirical data. The results would not have been achieved without their enthusiastic participation and input and valuable conversations and discussions during the interviews and surveys.

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Correspondence to Ilmars Kreituss .

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Kreituss, I., Vasiljeva, T., Rokjane, B. (2021). Factors Important for Banks in Attracting and Retaining Customers. In: Kabashkin, I., Yatskiv, I., Prentkovskis, O. (eds) Reliability and Statistics in Transportation and Communication. RelStat 2020. Lecture Notes in Networks and Systems, vol 195. Springer, Cham.

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