The Impact of Customer Loyalty and Retention on Satisfaction in Internet Banking: A Rural-Urban Analysis from Haryana, India

Abstract

This study examines the influence of customer loyalty and retention on satisfaction within the context of internet banking in Haryana, India, with a particular focus on rural-urban demographic variations. Using a quantitative approach, data was collected from 600 internet banking users across diverse educational, occupational, and regional backgrounds. Statistical analyses, including correlation and t-tests, reveal that both customer loyalty (r = 0.372) and retention (r = 0.330) are significantly and positively associated with satisfaction, underscoring their role in sustaining long-term user engagement. While overall satisfaction levels are high, urban users report greater satisfaction with transaction security and reliability compared to rural users, highlighting a digital divide influenced by accessibility and perceived safety. The study identifies transaction security, website efficiency, and customer support as key satisfaction drivers, and calls for banks to adopt targeted strategies such as localized support, digital literacy programs, and personalized engagement initiatives to enhance rural banking experiences. These findings offer practical insights for banks aiming to improve digital services, reduce churn, and foster customer loyalty across India’s diverse demographic landscape, particularly as internet banking becomes increasingly central to financial inclusion and service delivery.