A Study on Hyper-Personalization and Corporate Reputation in the Banking Industry

Abstract

This study aims to examine the effects of hyper personalisation applications in the banking sector on customer satisfaction, customer loyalty and corporate reputation. As is the case worldwide, the banking sector, which is among the leading sectors in digitalisation in Turkey, has turned to data-driven and technology-focused strategies in order to adapt to the fundamental transformation in customer expectations. During this transformation process, personalisation was first adopted in the context of extracting only the part of a large information pool that interests an individual or a specific group, followed by the adoption of hyper personalisation approaches, i.e., providing banking services tailored to the needs of each customer segment. Hyper personalisation stands out as an innovative approach that enables the provision of products, services, and experiences tailored to customers' individual needs, preferences, and behaviours. The aim of this study is to examine the relationships between hyper personalisation applications in the banking sector and customer satisfaction, customer loyalty, and perceived corporate reputation. Corporate reputation, which is the image that emerges from the importance of the organisation attaches to its target audience and which makes it important and valuable in the eyes of its stakeholders when compared to its competitors, has always been important since the beginning of financial activities. As banking has developed based on trust, the meaning of reputation in this field is even more important. The study reveals that hyper personalisation is not only a digital application that improves the customer experience for banks, but also a strategic tool in terms of the sustainability of long-term customer relationships and the strengthening of corporate reputation. The concept of corporate reputation was examined within the framework of corporate theory, stakeholder theory, and the resource-based view, and the importance of corporate reputation and reputation risks in the banking sector were evaluated. The study offers managerial recommendations for the banking sector and aims to contribute to future academic research.