In the current retail banking environment, effective
customer engagement is crucial for the success of organizations, impacting
customer satisfaction, loyalty, and overall business performance. Given the
competitive landscape and evolving customer expectations, it is essential for
banks, especially Absa bank in South Africa, to understand the dynamics of
customer engagement. This study aims to investigate how customer engagement
initiatives influence customer satisfaction at Absa bank in the Durban area to provide
strategic insights for enhancing competitiveness. Using theoretical frameworks
such as Sashi's customer engagement cycle and Gronroos' model of service
quality, this research explores the relationship between communication
strategies related to organizational change and customer satisfaction levels at
Absa bank in Durban. A quantitative research approach was employed, utilizing a
structured questionnaire survey and convenience sampling to gather data from
walk-in clients at various Absa bank branches. Statistical analyses, including
descriptive and inferential methods, were used to analyze the data and test
hypotheses. The results of the study offer valuable insights into customer
preferences and expectations in the retail banking sector. Customers appreciate
consistent messaging across different engagement channels and value
personalized communication from the bank. Personalized calls, follow-up phone
calls, and nonverbal cues such as a firm handshake were found to significantly
impact customer perceptions and satisfaction with Absa bank's services.
Customers display a high level of trust, satisfaction, and engagement with Absa
bank, indicating the success of its customer engagement initiatives. The study
also emphasizes the importance of social media in enhancing positive
word-of-mouth and shaping consumer perceptions. Based on these findings, it is
recommended that Absa bank implements a proactive customer engagement strategy
focused on providing positive and personalized experiences to its existing customers.
Key strategies include tailoring customer interactions, soliciting feedback,
introducing loyalty programs, and utilizing various engagement platforms.
