Customer Relationship Management as a Driver of Customer Trust and Retention in Fintech Firms in Solapur City

Abstract

Purpose: The aim of the present study is to research how the Customer Relationship Management (CRM) practices affect customer trust and retention among fintech companies that are located in Solapur, a tier 2 city in Maharashtra, India.

Methodology: It utilized a quantitative and cross sectional design in which the data was collected using 300 active fintech users who participated by filling in questionnaires. Practices of CRM, customer trust, and customer retention were taken by validated five-point Likert scales. Pearson correlation and regression analysis were used to analyze data in SPSS.

Findings:Results showed that there were significant positive correlations between CRM practices and customer trust (r = 0.684, p < 0.01), CRM practices and customer retention (r = 0.721, p < 0.01), and customer trust and customer retention (r = 0.768, p < 0.01). Regression analysis has verified that CRM practices account 46.8 percent of variance on trust and 52.0 percent of variance on retention and trust accounts 59.0 percent of the retention variance. The paper offers empirical research in a previously under-studied setting (tier 2 Indian city) and applies the theory of relationship marketing to the fintech field. Results provide practical ideas that should guide fintech companies in designing CRM strategy in new markets.