Surveying the Effect of Relationship Quality on Customer Lifetime Value in the Banking System

Attitudes of firms and institutions due to competitive environment development are inevitably focused on customer satisfaction to earn more profit. Customer has become the central element of all activities of organization so that from a competitive standpoint, the survival of organizations depends on identifying and attracting new customers and retaining existing ones. One of the tools that help organizations is customer relationship management that improves relationship quality and increase customer life time value. The purpose of study is to investigate the effect of relationship quality on the dimensions of customer life time value in Melly, Mellat, Tejarat, Sepah and Saderat bank in Mashad. In terms of purpose, study is practical and base on the method of gathering data; it is descriptive and correlative type. Statistical population of study is the customers of selected banks. Proportional stratified sampling used to determine sample population of this study. The data gathering tool of this study is questionnaire. Reliability and validity of the data collection tools were approved. Accordingly, a sample consisting of 385 customers from statistical population were selected and analyzed. For data analysis, Structural Equation Modeling and Amos software utilized. Findings from this study demonstrate that relationship quality has a positive and significant influence on the dimension of customer lifetime value (loyalty, Word of Mouth, Purchase Intention) in the surveyed banks. This means that when customers have a better understanding of the customer relationship management actions, then. They will have a better relationship with banks so that this increases loyalty, Word of Mouth and willingness to use make bank services.