The Impact of Relationship Marketing in Financial Institutions in Emerging Markets: Evidence from Albania
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Keywords:
Relationship Marketing, Customer Relationship, Financial Institutions, Albania, Customer Loyalty, CRM, Neural NetworkAbstract
In recent years, managers of financial institutions have increasingly acknowledged the strategic
importance of retaining existing customers as a critical determinant of competitiveness and long-term
sustainability. Marketing literature consistently highlights the advantages of cultivating a loyal customer base,
including reduced churn, enhanced profitability, and stronger advocacy. At the core of customer loyalty lies
the quality and continuity of the relationship between the client and the institution. The deeper and more
sustained this relationship, the greater the mutual value generated for both parties.
This study examines the role of relationship marketing in the context of financial institutions in Albania, an
emerging market where competition and customer expectations are intensifying. Specifically, it investigates
how Customer Relationship Management (CRM) practices influence customer satisfaction and behavioral
loyalty. A quantitative research design was employed, with data collected through structured questionnaires
administered to clients and employees of selected financial institutions across Albania. A purposive sampling
method ensured the inclusion of respondents with direct experience in banking and other financial services. A
total of over 400 valid responses (300 customers and 100 employees) were analyzed using SPSS version 25.
The Friedman test was applied to assess differences in customer awareness across CRM practices, while a
Neural Network Model was used to predict satisfaction based on demographic and behavioral variables.
Findings revealed that CRM attributes are not perceived equally, with “CRM enhances customer loyalty”
emerging as the most influential factor. The results underscore that effective CRM implementation in Albanian
financial institutions relies not only on technological infrastructure but also on human interaction, service
accessibility, and personalized engagement strategies. Hence, financial institutions in Albania are advised to
prioritize customer-centric CRM strategies, continuous staff training, and targeted communication to
strengthen trust, satisfaction, and long-term loyalty.
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