The Effect of Digital Transformation on Customer Experience: The Mediating Role of Customer Engagement: a Case Study of Bank of
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Date
2025-06-08
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A.A.U
Abstract
This study analyzes the impact of digital transformation on customer experience in the banking
sector, based on the Bank of Abyssinia within the Central Addis District. Based on a sample of
372 respondents, information was collected through a structured questionnaire using a five-point
Likert scale. Both explanatory and descriptive research designs were used, and SPSS version 30
was used to carry out the statistical analysis. Regression analysis was utilized to quantify the
impact of four most significant dimensions of digital transformation, i.e., personalization,
automation, self-service banking, and Omni channel integration on customer experience, whereas
mediation analysis with PROCESS Macro version 4 examined the mediating impact of customer
engagement. The findings revealed that personalization, self-service banking, and Omni channel
integration possess statistically significant and positive impacts on customer experience. While
automation have significant negative relation with customer experience. Besides, mediation
analysis also showed customer engagement was established to mediate partially between digital
transformation components (personalization, automation, self-service banking and Omni channel
integration) and customer experience. These conclusions place emphasis on customer-focused
digital transformation and indicate engagement as a critical bridge in building exceptional
customer experiences. The study presents practical recommendations for banks seeking to enhance
service delivery by digital transformation and suggests research avenues for future emerging
digital bank trends.