ASSESSING THE EFFECT OF CUSTOMER RETENTION

Abstract

Customer retention has become important with the proliferation of banks. Customers of late are seen hopping from one bank to the other depending on the kind of services offered. The problems envisaged as a result of loss of customers service are damage to corporate image, low profitability, and loss of competitive edge, etc. This study was therefore designed to assess the effects of customer retention using Stanbic bank Kumasi as a case study. The study aimed at examining customer retention strategies of the branch and customers’ perception of quality at the branch. A sample size of 201 respondents was chosen for the study. Data was obtained through the use of questioning and interview session. Data presentation and discussion were supported with line graphs and tables. The study revealed that Stanbic Bank Kumasi has established customer retention strategies as evidenced by the response rate. As the study found, these strategies included ‘Timely service delivery’, ‘Effective handling of complaints’, ‘customer acknowledgement’, and ‘reliable technology such as ATM service. On the average, most customers were satisfied with the bank’s strategies and general banking system. Results pointed to a reliability of service delivery at the branch although there were complaints of long waiting time sometimes. The study generally found that the bank is responsive to the customer’s needs and that customer assurance is embedded in the bank’s service delivery. The study recommended the need for the bank to know the demands of the customers in relation to the service they provide .Again, the bank should focus on the reliability issues that may be overcome by training the employees.