Enhancing Customer Experience and Its Impact on Customer Loyalty: Aligning Banking Sector Practices with Sustainable Development Goals (SDGS)
Authors: Chiguvi Douglas , Tadu Ruramayi , Mugwati Miriam , Jagadeesh Dhanya 
Published: December 2024

Objective: The aim of this study is to investigate how technological advancements in the banking sector, particularly artificial intelligence (AI) and automation, impact customer experience and loyalty. It aims to explore how these technology-driven improvements can enhance customer satisfaction while addressing the challenges faced by banks in Botswana with digital adoption and service quality. The study also seeks to align banking practices with Sustainable Development Goals (SDGs) to create sustainable competitive advantages.

Theoretical Framework: This study is grounded in the Service-Dominant Logic (SDL) theory, which emphasizes the co-creation of value between service providers and customers. It applies this framework to understand how technology-driven improvements (e.g., AI and automation) facilitate better service interactions and enhance customer satisfaction. The research also draws on the Technology Acceptance Model (TAM) to analyze the factors influencing digital adoption and its impact on service quality.

Methods: This research employs a mixed-methods approach, combining quantitative and qualitative techniques. Quantitative data were collected through surveys and customer feedback mechanisms to assess the impact of technology-driven changes on customer experience and loyalty. The study also involved a comparative analysis of banking practices in Botswana against global standards and SDGs to identify gaps and areas for improvement.

Results: The study finds that technological advancements, including AI and automation, significantly enhance customer experience by reducing errors, delays, and operational costs. Improved digital solutions and e-banking services lead to higher customer satisfaction and loyalty. However, banks in Botswana continue to face challenges related to digital adoption and maintaining service quality. The integration of SDGs into banking practices is shown to contribute to creating sustainable competitive advantages and addressing these challenges effectively.

Research Implications: The study underscores the need for banks in Botswana to prioritize AI and automation investments to enhance customer experience and loyalty, while aligning with Sustainable Development Goals (SDGs) for a competitive edge. It highlights the importance of training programs for both employees and customers to facilitate digital adoption, as well as the necessity for continuous improvement of digital tools and services. Banks are encouraged to develop customer-centric strategies and integrate sustainability into their practices to resonate with socially-conscious customers. Additionally, the comparative analysis offers a benchmark for local banks to adopt global best practices, and future research should explore the long-term effects of these technologies and emerging trends in banking.
Originality/Value: The research contributes original insights into how technological advancements in the banking sector can enhance customer experience and loyalty while aligning with SDGs. It provides a comprehensive understanding of the specific challenges faced by banks in Botswana and offers practical recommendations for improving digital adoption and service quality. The study’s originality lies in its integration of global standards and SDGs with local banking practices, providing a unique perspective on achieving sustainable growth in a developing context.