The Effectiveness of Customer Perspective in Balanced Scorecard in Driving Customer Satisfaction and Loyalty in Palestinian Banks

EasyChair Preprint 14606

Abstract

The customer perspective of the Balanced Scorecard (BSC) is designed to focus on customer satisfaction, loyalty, and retention, which are crucial for the long-term success of any banking institution. In the context of Palestinian banks, where customer trust and loyalty are essential amid economic and political challenges, the effective implementation of the customer perspective within the BSC framework can be a significant driver of sustained business growth.

This study examines the effectiveness of the customer perspective in the BSC as a strategic tool to enhance customer satisfaction and loyalty in Palestinian banks. It explores how banks define and measure key customer-related metrics, such as customer satisfaction scores, customer retention rates, and net promoter scores (NPS), and how these metrics are integrated into their overall strategic management processes.

The research adopts a mixed-methods approach, combining quantitative analysis of customer satisfaction and loyalty data with qualitative insights from interviews with bank managers, customer service representatives, and customers. This approach provides a comprehensive understanding of how the customer perspective is operationalized and its impact on customer-related outcomes.

Findings from the study reveal that banks that effectively implement the customer perspective within their BSC frameworks tend to achieve higher levels of customer satisfaction and loyalty. However, the study also identifies several challenges, such as the difficulty in accurately measuring customer satisfaction in a volatile environment and the need for more tailored customer engagement strategies that reflect the unique socio-economic context of Palestine.

Keyphrases: Balanced Scorecard, Banking Sector, Customer Engagement, Palestinian banks, Strategic Management, customer loyalty, customer perspective, customer satisfaction, service quality

@booklet{EasyChair:14606,
  author    = {Axel Egon},
  title     = {The Effectiveness of Customer Perspective in Balanced Scorecard in Driving Customer Satisfaction and Loyalty in Palestinian Banks},
  howpublished = {EasyChair Preprint 14606},
  year      = {EasyChair, 2024}}