Customer Perception Measures Driving Financial Performance - Theoretical and Empirical Work for a Large Decentralized Banking Group

There are many references in literature to customer satisfaction and related non-financial measures driving the financial performance of a company. Here we report results of analysis in the North-European financial sector, mainly banking. Based on proposed financial and customer perceived KPIs, operational measures are devised and measured for the studied corporation on different levels from global-corporate to individual branches. In addition, possible extensions to other industries of this relationship are studied and briefly reported. The analysis is based on panel approach where cross-section and time-series observations are studied for major actors. The Arellano-Bond estimation technique is used throughout