INFLUENCE OF INFORMATION TECHNOLOGY ON CUSTOMER RETENTION IN COMMERCIAL BANKS

James Kiki, Dr. Martin Ogutu

Abstract


The purpose of the study was to establish the effect of information technology on customer retention in commercial banks. The study adopted a descriptive research design. The study targeted all the commercial banks in Kenya. The study was a census survey and thus collected data from all the 43 commercial banks. Purposive sampling was used to select the 43 managers of the marketing departments in each bank. The study used both primary data and secondary data. Primary was collected using questionnaires. To test the validity and reliability of the instrument that was used, pilot study was conducted. The researcher used descriptive statistics where frequencies and Percentage of responses were obtained through the use of SPSS. The measures of dispersion such as the mean and standard deviations were used. Tables and other graphical presentations such as bar charts, histogram, grouped frequency distributions and pie charts as appropriate were used to present the data collected for ease of understanding and analysis. The study found that customer Information technology affects customer retention by enhancing effective communications with customers and enable quick response to customer complains. The banks have integrated information technology to improve the capabilities of understanding customer behavior and Information Technology enables customized experience.  Commercial banks should thus integrate information technology to improve the capabilities of understanding customer behavior.

Key Words:  Information Technology, Customer Retention


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