Customer Empowerment, Customer Retention, and Performance of Firms

Abstract

This study looked into how customer empowerment affects a company's performance (i.e., a bank). The relationship between customer empowerment and the firm's performance of banks in India's Delhi and NCR region has been studied, and innovation and customer satisfaction have been found to mediate this relationship. 439 bank employees, both male and female, were chosen for this study. Confirmatory factor analysis was used to analyze the data, and it was discovered that the variables met the requirements of path analysis. Customer empowerment has been found to have a significant impact on firm performance (i.e., a bank) as well as a negligible impact on customer satisfaction and customer retention. Therefore, this research differs from earlier studies that demonstrate that customer empowerment has a significant impact. It suggests a comprehensive framework that explains the connections between customer empowerment, innovation, customer satisfaction, customer retention, and business performance.