The Contribution of Personalization to Customers' Loyalty Across the Bank Industry in Sweden

Since customer loyalty is one of the main important elements which enhance companies' profit, it is very important to investigate factors which create customer loyalty. Nowadays, companies try to increase their loyal customers by taking advantage of some relationship marketing tactics. One of the most important tactics is personalization. Marketers and managers should try to fulfill each customer's needs based on individual's desires. This can increase their customers' commitment and satisfaction. Therefore, these customers are more likely to remain with the company and become loyal. This study intends to evaluate the impact of personalization on customers' commitment and satisfaction and then determine the impact of customers' satisfaction and commitment on customers' loyalty among bank customers in Sweden. In this regards, a model is provided and empirically tested. Meanwhile, in order to conduct this study, primary data has been collected by a properly designed questionnaire which was distributed among bank customers in 3 different banks in Sweden and the secondary data has been collected through online data base such as Ebsco and Science Direct. Afterwards, SPSS (17.0) tool has been used in order to evaluate the relationship between variables of the model. Accordingly, correlation analysis and regression results determined the relationship between the variables. Based on the results, there are positive significant relationships between personalization as independent variable and customers' satisfaction and commitment as dependent variables. So, high level of personalization increases the customers' satisfaction and commitment. Meanwhile, the results show that there are also positive significant relationships between customers' satisfaction, commitment and customers' loyalty. Consequently, as customers' satisfaction and commitment enhances, the level of customers' loyalty also increases. Finally, personalization increases the customer's loyalty among bank customers in Sweden.