Jaya Mishra, Utpala Das
The study is a quantitative one that evaluates the effect of Emotional Intelligence (EI) training on retaining customers among front line employees in the banking industry. A sample of 374 employees, engaged in three areas in India, in the metropolitan regions in the public, private, and cooperative banks, was used to gather data through the use of a standardised questionnaire, which was completed before and after an EI training programme. EI was measured using four main dimensions; self-awareness, self-regulation, empathy and relationship management and correlated to customer retention measures including the number of repeat visits, customer rating and complaint rates using customer relationship management records. The results of structural equation modelling revealed that each of the four EI dimensions plays a significant positive role in customer retention outcomes, and relationship management and empathy were the strongest predictors. Post training employees who enhanced their EI reported to have better control of their emotions during service interactions, showed increased sensitivity to customer needs and enhanced capacity to develop long term relations. These shifts were linked to the increased post-training satisfaction scores, the repeating business, and reduction of complaints. The results sing European Intelligence training as a strategic human resource intervention that can help improve the quality of services, improve customer relationships and position better in a high-contact service sector like banking. Longitudinal designs should be used in future studies to determine the sustainability of these effects in the long run.