This paper argues that retail banks need to focus more strongly on components of their Customer
Relationship Management (CRM) strategy that will generate customer affective commitment and lead to
an increase in customer retention, share of wallet, and advocacy. It is suggested that affective commitment
is generated during ‘ moments of truth ’ or episodes of interpersonal interaction between customers and
bankers. As shown in social psychology, effective interpersonal interactions are a function of the
assertiveness and affi liation demonstrated during the interaction. Applying this to retail banking, bankers
should mine their databases to identify customers in terms of their levels of profi tability and longevity,
and should deliver levels of assertiveness and affi liation appropriate to each customer. Testable research
propositions are developed regarding how affective commitment might evolve during a customer ’ s
tenure with a retail bank, when bankers should deliver assertiveness and / or affi liation to customers of
differing longevity and profi tability, and how these strategies to increase affective commitment will
impact retention, share development, and advocacy. Overall, the call is to complement the emphasis on
the use of high-tech CRM strategies that generate huge databases with a more high-touch strategy that will
indicate to bankers how to interact with each individual customer.