Customer Experience Management in the Banking Sector and Its Relation to the SDGs
Authors: Chiguvi Douglas , Tadu Ruramayi , Mugwati Miriam 
Published: December 2024

Objective: The purpose of this study is to assess the impact of customer experience on customer satisfaction within the banking sector in Botswana. It aims to explore how technological innovations and increased customer education influence customer satisfaction and loyalty, and to identify gaps in the current understanding of customer experience assessments in this context.

Theoretical Framework: This study is grounded in the Expectancy Disconfirmation Theory (EDT) which posits that customer satisfaction is determined by the comparison between expected and perceived performance. According to EDT, when service performance exceeds customer expectations, positive disconfirmation occurs, leading to high satisfaction. Conversely, if performance falls short of expectations, negative disconfirmation occurs, resulting in dissatisfaction. This theory focuses on how discrepancies between what customers anticipate and what they actually experience influence their overall satisfaction with a service or product. It helps in understanding how meeting or exceeding customer expectations can enhance satisfaction, while failing to do so can lead to dissatisfaction.

Methods: This study adopts a positivist philosophy and employs a quantitative approach. Data was collected using a structured questionnaire designed to measure various aspects of customer experience and satisfaction. Descriptive statistics were first used to summarize the data, followed by regression analysis to evaluate the correlation between customer experiences and customer satisfaction. This approach allows for a comprehensive understanding of how technological and service innovations affect customer perceptions and satisfaction.

Results: The analysis reveals a significant positive relationship between customer experience and customer satisfaction among banking customers in Botswana. Technological advancements and innovations in banking services contribute to enhanced customer satisfaction. The findings underscore the importance of managing customer experiences effectively to maintain competitiveness and foster loyalty.

Research Implications: This study highlights the crucial role of technological innovations and customer education in enhancing customer satisfaction and loyalty within Botswana's banking sector. Banks should focus on leveraging technological advancements and improving customer education to drive satisfaction and competitiveness. Establishing Customer Advisory Boards and Customer Experience Teams is recommended to manage and improve customer experiences effectively. The findings suggest that integrating these strategies with a focus on Sustainable Development Goals (SDGs) can support both economic growth and innovation. Additionally, future research could further explore how different technological innovations impact various customer segments and the long-term effects of these changes on overall service quality and customer loyalty.

Originality/Value: This research contributes original insights into the relationship between customer experience and satisfaction in the context of Botswana’s banking sector. It highlights how technological innovations and increased customer education can drive customer satisfaction and loyalty. The study provides practical recommendations for banks, such as establishing Customer Advisory Boards and Customer Experience Teams, to enhance service quality and maintain a competitive edge. Additionally, it aligns with Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 8 (Decent Work and Economic Growth), by emphasizing the role of innovation and technology in supporting economic growth and improving customer satisfaction.