Gilbert Awiti, Dr. Patrick Otieno


The purpose of the study was to establish the effect of Customer relationship management on customer retention in commercial banks. Specific objectives were to establish the effect of promotion on customer retention in commercial banks, and to establish the effect of branding 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 promotion affect customer retention in commercial banks to a great extent. The banks’ promotion strategies recognize the diversity of customers. The study also concludes that branding affect customer retention in commercial banks to a great extent. Brand visibility lead to recognition by customers who if attracted to the brand then lead to brand loyalty. The study thus recommends that commercial banks should continue with the promotion strategies and also continue to brand their products and services to attract more customers.


Key Words; Promotion, Branding, Customer Retention

Full Text:



Baumeister H (2002). Customer relationship management for 5MB's. Journal of management, 67, D-80538 Munchen, Germany, pp. 1-7.

Beckett, A. & Hewer, P. & Howcroft, B. (2000), An Exposition of Consumer Behaviour in the Financial Services Industry, International Journal of Bank Marketing 18(1), pp 15-26

Cap Gemini Ernst & Young. (2005): European CRM Index. Winning in the relationship economy.

Cheese J. (1994): Till death us do part. The why, what and how of managing customer relationships. Dublin: Lafferty Publications.

Chen, I., and Popovich, K., (2003). Understanding customer relationship management (CRM) People, process and technology. Business Process Management Journal, Vol. 9(5), pp. 672¬688

Christopher M, Payne A & Ballantyne D. (1991): Relationship Marketing. Bringing quality, customer service and marketing together. Oxford: Butterworth-Heinemann.

Hammond, K, & Ehrenberg, A (2010), The After-Effects of Price-Related Consumer Promotions, Journal of Advertising Research, 34(4), pp 11-21

Hansemark, O. C. & Albinson, M. (2014). Customer Satisfaction and Retention: The Experiences of Individual Employees. Managing Service Quality, 14 (1), 40-57.

Hofacker, C. F., Goldsmith, R. E., Bridges, E. & Swilley, E. (2007). “E-service: A Synthesis and Research Agenda.” Journal of Value Chain Management; Vol.7, no.2, pp.147-67

Hofer, C. (2005). Whole of Life Focus. Management, 18(3), 10-14.

Jeffries, R. (2007). Reaping the rewards of recognition. HR Focus, 74(1), 9-10

Kotler M.M. (1999). Strategies Applied by Commercial Banks in Africa in Anti Money

Laundering Compliance Programs. 10th Ed New Jersey: Prentice Hall, Inc.

Kotler, P. & Keller, K. (2006). Marketing Management (l2th edition). New Jersey: PrenticeHall

Kotler, P. (2003), Marketing Management, Managing Advertising, Sales Promotions, Public Relations, and Direct Marketing, pp 589-630, Pearson Education, New jersey, USA

Owens, 1., and Anna, B. (2006): Catching The Technology Wave: Mobile Phone Banking

and Text_A_Payments in The Philippines. Singapore: McGraw-Hill.

Park R., & Kim (2003). Aspects of Banking in Kenya. 10th Ed. New York: McGraw Hill

Peppers D, Rogers M & Dorf B. 1999: Is your company ready for One to One Marketing? Harvard Business Review. Manager’s Tool Kit, January/February: 3-12.

Peppers, D., Roger, M., (1995). A New Marketing Paradigm, Planning Review, 14-18

Reichheld, F. (1996). Loyalty affects the hidden force behind growth, profit and lasting

value. Boston: Harvard Business School Press.

Report on Salary Surveys. (2003). Institute of Management and Administration. Retrieved March 30, 2005, from

Stone, Merlin et al. (2002). The Evolution of CRM in Banking, Publication Kogan Page.

Voss GB & Voss ZG. 1997: Implementing a relationship marketing program: a case study and managerial implications. The Journal of Services Marketing, 11(4): 278-298.

Westch, M. (2005). Key Customer Relationships, Journal of Business Venturing, 16 – 2016

Zairi, M. (2014). Managing Customer Dissatisfaction Through Effective Complaint Management Systems. The TQM Magazine, 12 (5), 331-335.


  • There are currently no refbacks.