INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER RETENTION IN COMMERCIAL BANKS IN KENYA

Gilbert Awiti, Dr. Patrick Otieno

Abstract


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


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