Service Quality and Customer Retention at Savvy Riders Kenya

Abstract

The retention of customers has been under discussion for many years and is still one of the most important unresolved marketing problems. Customer service is considered as the provision of services to meet the needs of consumers prior to, during, and after the purchase of a product. Savvy Rider riders remain an effective case study in the market given that the organization faces a series of competitors in the market, establishing the need to differentiate its services from those of its competitors to remain competitive. The general objective of the study was to establish the effect of service quality dimensions on customer retention at Savvy Riders Kenya. This study was based on three theories, relationship and commitment theory, holistic approach to satisfaction and commitment trust theory. The research adopted a case study approach and an interview guide was used for collection of data. Content analysis was used to analyze data which was qualitative in nature. The study established that service quality influences the customer retention and experience scores, determining how employees are recruited, trained and promoted. Service quality contributes positively to the profitability of Savvy riders as well as to the reputation of the firm as a responsible organization that is run ethically. The study established Savvy rider faces the challenge of maintaining consistent service quality where managers apply the standards inconsistently and reward sales effort more lucratively as compared to service. The study concludes that service quality has a significant influence and plays an important role in customer retention of Savvy riders in Kenya. Savvy riders in Kenya customers consider reliability and responsiveness as the two most important service quality dimensions and tangibles as the least important of the five dimensions. The Savvy riders should embrace the various aspects of service quality in all its departments since they are mostly positive and beneficial to the company. Moreover, the firm should review its mission every year so as the refine all the area which it has not achieved as this would increase the customers’ satisfaction through the increased efficiency and the effectiveness of its operations.