INFLUENCE OF CUSTOMER RETENTION STRATEGIES ON CUSTOMER LOYALTY AMONG COMMERCIAL BANKS IN KENYA: A CASE OF EQUITY BANK BRANCHES IN NAIROBI COUNTY, KENYA
Abstract
This research investigated the influence of corporate image management, service quality management, product quality management and customer reward programs on customer loyalty in Equity Bank branches in Nairobi City County. Explanatory survey design was used to explain hypothesized relationships, thus the influence of the independent variables on customer loyalty (dependent variable). The study targeted 210 employees in strategic sections at Equity Bank 21 branches in Nairobi, Kenya comprising of Branch managers, Operations managers, Customer relationship managers, Marketing Managers, Business development managers, Business Lending Managers, Agency Banking Managers, Consumer Lending Managers, Debt Collection Managers and Operations managers. A sample of size of 138 respondents was selected using stratified random sampling technique. Primary data was collected using a well-designed questionnaire. Piloting was conducted to determine validity via content and construct validity as well as reliability using Cronbach alpha. Quantitative data was analyzed using descriptive and inferential statistics. The data was presented in form of tables and models. The study established that corporate image management, service quality management, product quality management and customer reward programs had significant positive influence on customer loyalty. This implied that increase in customer retention strategies would enhance customer loyalty. The study concluded that customer retention strategies have significant influence on customer loyalty of Equity Bank Branches in Nairobi City County. The study recommended that management of commercial banks should consider customer retention strategies as strategic assets that are appropriate for generating not only an overall evaluation of firms but also for arousing affective positive perceptions of service performances thus increasing loyalty on the part of customers.
Key Words: Corporate Image Management, Service Quality Management, Product Quality Management, Customer Reward Programs, Customer Loyalty
CITATION: Fulasia, P. A., & Otinga, H. (2021). Influence of customer retention strategies on customer loyalty among commercial banks in Kenya: A case of Equity Bank branches in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 8 (1), 878 – 898.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1956
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