Measuring the Customers’ Loyalty to Mehr-Eghtesad Bank with Balanced Scorecard Approach

Author Name(s): Hadi Keshavarznia, Hashem Valipour*
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The success of organizations would be double or triple by having a formal system for strategy implementation. Balanced Scorecardapproach was developed by Kaplan and Norton in 1991 for the first time that has been called “Strategic Management System” over the next decades. As this method was not only to evaluate the performance, but it has also been used as a framework to formulate a strategy and communication, and to monitor the implementation of strategies. Successful companies do not only rely on financial measures to evaluate their performance, but also they evaluate their performance from three other perspectives, i.e., the customer, internal process, and learning and growth. In this research, the relationship between the level of customers’ loyalty of Mehr-Eghtesadbank branch and customers’ income level through analysis of variance was analyzed in order to verify the existence of strategy as the core of balanced scorecard system. Loyalty components used in this research include: (1) Affective and emotional components; (2) Commitments; (3) Organizational appearance; (4) Satisfaction; (5) Perceived service quality; and (6) Trust. The study population consisted of all available customers who have received sustainable services from the selected branch of Mehr Bank during conducting the research. Thus, 124 customers were randomly selected as the sample. The results of the survey reflect the fact that there is no significant relationship between loyalty and income level of customers.


Balanced scorecard system, loyalty, strategy, bank


Expanding the competitive space is evident in various domains of economy in the country. In the meantime, the banking system has been facing increasing competition of private and public banks due to the economic space of governing the country; in the way that sometimes we can see banks’ dramatic interest rates in order to attract and retain their clients. On the other hand, according to the mentioned competitive conditions, many modern management systems introduce the increase customers’ loyalty as a key success factor.

One of the most basic and most important factors is the strategy in order to implement a balanced scorecard system. In the banking industry, increasing high-income customers’ loyalty can be a key strategy. As high-income customers invest monthly more money as savings in the banks. So investigating the relationship between different levels of customers’ income and customers’ loyalty is particularly important to determine the banks’ strategy. On the other hand, organizations should also be aware of their customers’ features in order to determine the long-term policy and strategy. Therefore, we can conclude that the first step in the implementation of Balanced Scorecard system is strategy explanation and consequently recognition of customers and determination of the level of their loyalty.

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