RELATIONSHIP MARKETING AND CUSTOMER LOYALTY IN LARGE TIERED SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN MOMBASA COUNTY, KENYA
Abstract
The purpose of the study was to determine the effect of relationship marketing on customer loyalty in Savings and Credit Cooperative Societies in Mombasa County. The Tier 1 SACCOs in Mombasa County was targeted. The study was anchored on relationship management theory, Commitment-Trust theory and Social Exchange Theory. This study adopted cross-sectional survey design. According to SARA 2022 Annual supervision report, as of 2022 there were 21 deposit taking Tier 1 Saccos in Kenya. However, the study targeted Tier 1 DT-Saccos, Stima Sacco, Imarika and Bandari Sacco, operating in Mombasa County as unit of analysis. A sample of 58 was selected using Yamane statistical formula. Multistage sampling techniques comprising of purposive sampling and simple random sampling technique was used. The study utilized primary data which was collected using a structured questionnaire with a five point Likert scale. Multiple regression and correlation analysis techniques were utilized. Data analysis tool used was SPSS Version 29. The findings indicated that all four variables—customer loyalty programs, conflict handling, gratitude, and communication—positively influence customer loyalty. However, communication has the strongest relationship with customer loyalty, highlighting the importance of maintaining transparent and consistent customer interactions. While customer loyalty programs, conflict handling, and gratitude initiatives also contribute significantly. The regression analysis confirms that all four independent variables significantly impact customer loyalty, with customer loyalty programs (β = 0.574) having the strongest effect, followed by conflict handling (β = 0.484), communication (β = 0.295), and gratitude initiatives (β = 0.173). The study concluded that customer loyalty programs, conflict handling, gratitude initiatives, and communication all have a significant impact on customer loyalty, with customer loyalty programs having the strongest influence. In recommendation, the Sacco should focus on strengthening its gratitude initiatives and customer retention efforts while maintaining its strong performance in loyalty programs, conflict handling, and communication.
Key Words: Customer Loyalty Programs, Gratitude, Communication, Conflict Handling
CITATION: Ali, M. M., & Kiiru, D. (2025). Compensation practices and employees’ performance in the insurance companies in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 80 – 96. http://dx.doi.org/10.61426/sjbcm.v12i1.3198
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3198
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