A Comprehensive Conceptual Framework for Relationship Management Models in Banking and Their Influence on Customer Retention

• Author(s): Priscilla Samuel Nwachukwu ; Onyeka Kelvin Chima ; Chinelo Harriet Okolo
• Paper ID: 1710334
• Page: 253-271
• Published Date: 30-11-2019
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 3 Issue 5 November-2019

Abstract

The contemporary banking industry is experiencing rapid transformation driven by digitalization, regulatory shifts, and evolving customer expectations. In this dynamic environment, relationship management has emerged as a strategic imperative for sustaining customer loyalty and ensuring long-term profitability. This paper presents a comprehensive conceptual framework for relationship management models in banking, emphasizing their influence on customer retention. The framework integrates traditional relationship marketing principles with modern technological enablers, such as artificial intelligence, big data analytics, and customer relationship management (CRM) systems, while also considering behavioral, psychological, and socio-economic dimensions of customer-bank interactions. By examining key drivers such as trust, service quality, personalization, communication, and perceived value, the framework highlights how banks can strategically align relationship management practices with customer-centric objectives. Furthermore, the study explores the role of omnichannel engagement, financial inclusion strategies, and ethical practices in reinforcing long-term customer relationships. Insights are drawn from cross-sectional perspectives of retail and corporate banking to demonstrate how relationship management models adapt to diverse customer needs. The framework also acknowledges the challenges associated with high customer switching costs, competitive financial technology (FinTech) alternatives, and regulatory compliance, proposing adaptive strategies to mitigate these risks. The conceptual framework contributes to both academic discourse and managerial practice by offering a structured approach for understanding the interdependencies between relationship management constructs and customer retention outcomes. It emphasizes that customer retention in banking is not solely a result of transactional satisfaction but rather an outcome of holistic relationship quality nurtured over time. Ultimately, this study positions effective relationship management models as vital tools for banks seeking sustainable competitive advantage in an increasingly customer-driven marketplace. The findings provide a foundation for future empirical validation and guide practitioners in designing robust retention strategies that leverage technology, trust, and tailored value creation.

Keywords

Relationship management, banking models, customer retention, customer relationship management (CRM), financial services, trust, service quality, digital banking, customer loyalty, FinTech.

Citations

IRE Journals:
Priscilla Samuel Nwachukwu , Onyeka Kelvin Chima , Chinelo Harriet Okolo "A Comprehensive Conceptual Framework for Relationship Management Models in Banking and Their Influence on Customer Retention" Iconic Research And Engineering Journals Volume 3 Issue 5 2019 Page 253-271

IEEE:
Priscilla Samuel Nwachukwu , Onyeka Kelvin Chima , Chinelo Harriet Okolo "A Comprehensive Conceptual Framework for Relationship Management Models in Banking and Their Influence on Customer Retention" Iconic Research And Engineering Journals, 3(5)