| dc.description.abstract | This research project studied the effects of ATMs on customer retention in banks in Meru town. The study addressed five aspects of ATMs which included location of ATMs, Number of ATMs; Services offered by ATMs, Uptime of ATMs and customers' knowledge of use of these ATMs. The objectives of this study were derived from the above aforementioned variables. The objectives were: To determine the extent to which the location of ATMs influenced customer retention in Banks in Meru town; To determine the extent to which the number of ATMs influenced customer retention in Banks in Meru town;
To determine the extent to which the types of services offered by ATMs influenced customer retention in Banks in Meru town; To establish the effects of uptime of ATMs on customer retention in Banks in Meru town; To find out the effects of customers' knowledge of use of ATMs on customer retention in Banks in Meru town. The researcher used descriptive survey design which was cross-sectional in nature. Research instruments included questionnaires, interview schedule and documentary analysis.
The study was confined in commercial banks in Meru town only. The researcher used a sample size of 400 respondents. In addition, 5 bank branch managers and 5 CBK officials were involved. This research was as a result of despite the continued use of ATMs by commercial banks, little is known about effects of ATMs on customer retention in commercial banks in Meru town Location of ATMs in Meru town was found to have impact on customer retention. If customers did not have the locations they preffered, then majority said that they can easily look for alternatives in most cases moving away from such banks by various ways.
Number of ATMs likewise influenced customer retention. Customers required that ATMs should be enough to meet their day to day requirements. Services offered by these ATMs did not have greater negative effects on customer retention but for maximum customer retention, services provided by these ATMs should correspond to customers' reaquirents. In fact customers should be taught that there are other services offered by ATMS apart from withdrawal.ATMs breakdown especially end months was high and lead to customers' dissatisfaction. Finally, some customers did not have the knowledge of carrying out some transactions and this limited there use of these ATMs and they were not happy with it. | en_US |
