Personalisation of services

Abstract

The main aim of this study is to examine the relationship between personalisation of services and customer loyalty. The perspective we are taking is a demand side perspective in which the Maltese Banks are being studied. Thus, the main objectives of this study are (1) to understand the relationship between personalisation and customer loyalty and (2) to examine the relationship that customer satisfaction has with customer loyalty and personalisation. With the main research question being the effect of personalisation on customer loyalty and with the extensive literature review, the research model proposed includes the constructs of personalisation, customer loyalty and customer satisfaction. Our findings show that there is a positive correlation between our constructs. In fact bank users who scores high on personalisation it tends to score high on customer satisfaction and customer loyalty. Contrariwise, bank users who are scoring low on personalisation tend to score low on customer satisfaction and customer loyalty. Moreover, the age demographic characteristic tend to be significantly comparable between various age groups in which the age bracket between 18 – 28 obtained higher mean customer satisfaction / customer loyalty / personalisation scores than obtained by the other age brackets. This finding could be generalised to the whole Maltese population since it has 95% confidence interval. This study implies that the Maltese banks should have more personalised strategies because personalisation has an effect on both customer satisfaction and customer loyalty.