Effects of Customer Retention Strategy on Performance of Commercial Banks in Kenya
International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

ISSN: 2319-7064


Amazon Sale


Research Paper | Management | Kenya | Volume 4 Issue 6, June 2015

Effects of Customer Retention Strategy on Performance of Commercial Banks in Kenya

Mutegi Nicholas Mugambi, Dr. Assumptah W. Kagiri

Banking services in the markets, inclusive of emerging markets, are undergoing major change that is speared by change, regulations and customer sophistication. Customer retention is critical to attaining a sustainable competitive advantage. This study was designed to examine the effects of customer retention strategy on performance of commercial banks in Kenya. In order to capture the required information, the study was guided by four objectives, to determine the effect of location on the performance of commercial banks in Kenya, to determine the effect of credit process on the performance of commercial banks in Kenya, to determine the effect pricing on the performance of commercial banks in Kenya, and to determine the effect of Customer service on the performance of commercial banks in Kenya. The Study employed a descriptive survey design utilizing both primary and secondary data. Thirty five copies of Structured and unstructured questionnaires were used to collect primary data and were administered to five commercial banks in tier I through -drop and pick later- method while secondary data was collected through literature and document review. The postulated objectives were tested by employing the Pearson Correlation statistical tool which was facilitated by the statistical package for social sciences (SPSS), while the main method of data presentation was frequency distribution tables. Location was found to have a significant effect on performance of commercial banks, banks invested in opening more delivery channels that guaranteed higher customer retention. Credit process had a significant effect on the performance of the banks. Most banks were striving to remove bottle necks in credit decision making process and reduction in turnaround time of processing credit requests. Findings also showed that pricing and customer service had a direct impact on the performance of the commercial banks. The study therefore concludes that commercial banks in Kenya should increase customer identification and retention strategies since they commensurably impact on their level of performance. The study recommended that the key to efficient performance of commercial banks in Kenya is pegged on their ability to, attract, identify, retain and develop their customers better than competitors

Keywords: Location, Credit Process, Pricing, Customer Service

Edition: Volume 4 Issue 6, June 2015

Pages: 44 - 49

Share this Article

How to Cite this Article?

Mutegi Nicholas Mugambi, Dr. Assumptah W. Kagiri, "Effects of Customer Retention Strategy on Performance of Commercial Banks in Kenya", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=SUB155131, Volume 4 Issue 6, June 2015, 44 - 49

59 PDF Views | 67 PDF Downloads

Download Article PDF


Amazon Sale


Similar Articles with Keyword 'Location'

Research Paper, Management, Kenya, Volume 5 Issue 5, May 2016

Pages: 1726 - 1736

The Impact of Locally Generated Television Programmes on the Kenyan Television Viewers: A Case Study of Citizen Television

Were J. Maende, Makori M. Nyambane

Share this Article

Research Paper, Management, Philippines, Volume 9 Issue 5, May 2020

Pages: 1381 - 1385

Enhanced Technical and Administrative Skills of School Heads in Bulan District

Darwin Ll. Gersalia, Noel G. Benavides, Aldin D. Labo

Share this Article

Research Paper, Management, Zimbabwe, Volume 3 Issue 9, September 2014

Pages: 1757 - 1762

The IMF / World Bank Economic Structural Adjustment Programmes in Sub-Saharan Africa: What Were the Impacts on Small Enterprise Development?

Washington Muzari, Edson Gwangwava

Share this Article

Research Paper, Management, Kenya, Volume 4 Issue 7, July 2015

Pages: 2658 - 2664

Effects of Governance Practices on Provision of Housing as a Basic Right for the Low Income Urban Areas in Kenya; A Case of Mombasa City

Edna Kwamboka Riechi, Dr. Mike Iravo, Dr.Samuel Obino Mokaya

Share this Article

Review Papers, Management, India, Volume 4 Issue 8, August 2015

Pages: 1982 - 1986

Role of Knowledge Management in Network Based Manufacturing Activities

N. Sivasubramanian, Dr U. Syed Aktharsha, M. Sheik Mohammed

Share this Article

Similar Articles with Keyword 'Pricing'

Research Paper, Management, Saudi Arabia, Volume 4 Issue 6, June 2015

Pages: 2531 - 2536

Price Adjustment Options for a Not-For-Profit Health Organization

AlaDeen Mahd Alloubani, Ibrahim Mubarak Abdelhafiz

Share this Article

Research Paper, Management, Nigeria, Volume 4 Issue 6, June 2015

Pages: 717 - 724

Macroeconomic Variables and Stock Market Prices in Nigeria: A Cointegration and Vector Error Correction Model Tests

Gabriel Nkechukwu, Justus Onyeagba, Johnson Okoh

Share this Article

Research Paper, Management, Ghana, Volume 5 Issue 4, April 2016

Pages: 462 - 468

The Impact of Mobile Telecommunication Companies Price War on Consumer Purchasing Behaviour in Ghana

Benjamin Tawia Ansu, Emmanuel Kwarteng

Share this Article

Research Paper, Management, Kenya, Volume 5 Issue 3, March 2016

Pages: 1616 - 1621

Factors Affecting Credit Extension to the Tourism Sector Investment Facilities in Kenya by the Commercial Banks

Norah Buyaki Ratemo, Dr. Gladys Rotich PHD, Wicliffe Anyango

Share this Article

Research Paper, Management, Kenya, Volume 5 Issue 5, May 2016

Pages: 1625 - 1631

Effects of Customer Service Strategies on Customer Satisfaction of Firms in the Telecommunication Sector in Kenya

Nganga Ruth Wanjiku, Dr. Kepha Ombui, Dr. Mike Iravo

Share this Article

Similar Articles with Keyword 'Customer Service'

Research Paper, Management, Kenya, Volume 3 Issue 3, March 2014

Pages: 192 - 196

Effects of Competitive Strategies on Customer Retention in G4s Security Services (K) Ltd

Kihoro Cyrus Murigi, Kepha Ombui

Share this Article

Research Paper, Management, Kenya, Volume 5 Issue 5, May 2016

Pages: 1625 - 1631

Effects of Customer Service Strategies on Customer Satisfaction of Firms in the Telecommunication Sector in Kenya

Nganga Ruth Wanjiku, Dr. Kepha Ombui, Dr. Mike Iravo

Share this Article

Research Paper, Management, India, Volume 3 Issue 5, May 2014

Pages: 1429 - 1431

A Structured Approach to Optimize Outbound Supply Chain Cost in an Automotive Industry

C. P. Aruna Kumari, Y. Vijaya Kumar

Share this Article

Research Paper, Management, Kenya, Volume 3 Issue 11, November 2014

Pages: 419 - 425

The Influence of Innovation Strategies on Customer Service Delivery in Kenya Power Company, Kenya

Muchina M. Wanjiru, Obino S. Mokaya

Share this Article

Research Paper, Management, Kenya, Volume 4 Issue 6, June 2015

Pages: 44 - 49

Effects of Customer Retention Strategy on Performance of Commercial Banks in Kenya

Mutegi Nicholas Mugambi, Dr. Assumptah W. Kagiri

Share this Article
Top