The Impact of Digital Marketing on Customer Engagement and Loyalty in the Indian Banking Sector: A Case Study of Axis Bank

Abstract

The advent of digital marketing has fundamentally changed the way customers interact with and display loyalty towards banking institutions, providing advanced tools aimed at improving customer experiences and fostering long-lasting relationships. This study explores the impact of digital marketing on both customer engagement and loyalty, specifically focusing on the digital platforms of Axis Bank. The study considers four fundamental elements—Design, Credibility, Trustworthiness, and E-Word-of-Mouth (E-WOM)—to determine their impact on customer behaviors (Abdul et.al., 2015). A quantitative methodology has been used in which structured questionnaires were provided to gather data from 126 active customers of Axis Bank via a convenience sampling technique. Data has been analyzed through EFA, CFA, and path analysis to examine the above hypotheses. Findings indicate that Credibility, Trustworthiness, and E-WOM have a significant positive impact on customer engagement and loyalty, while Design bore no influence; customers accord more value to functional dependability than to aesthetic appeal (Yoo et.al., 2014). Thereby, it calls banks to focus on service reliability, secure digital transactions, and encouraging positive word-of-mouth to build loyalty. The originality of this paper lies in its focused examination of digital marketing’s influence in the Indian banking context using a multidimensional lens that combines engagement and loyalty. Unlike prior studies, it disaggregates the digital experience into specific constructs, offering practical clarity for banks to refine their strategies. Offering practical insights, this research enhances strategies that banks may implement to bolster customer relationships via efficient digital marketing efforts.