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.