| dc.description.abstract | Customer retention has gained increased value among both goods and service providing firms. However although extensive research exist on the concept of customer retention and its measures and instruments, studies and research on how professional service firms retain their customers remain limited. With the improvement of building societies into banking institutions; there has been frequent switching of customers from one bank to another due to good competitive advantages like low interest rates on loans and a reduction in the ledger fees charged by the banks. Further, customer awareness and knowledge levels have appreciated dramatically with some of them raising doubts about the ability of banks to look out for their financial wellness. This study sought to establish the strategies adopted by commercial banks in Kenya to enhance customer retention and to determine the level of customer retention among commercial banks in Kenya. The study adopted cross-sectional research design. A census of all the 44 commercial banks operating in Nairobi as at December 2013 was used. Data was collected using questionnaires which were administered through drop and pick method. Data was analyzed using descriptive statistics, regression and correlation analysis to establish the relationship between the variables. The study found out that level of service quality in the bank was high. The study also found out that customers were satisfied with convenience of branch location, prices (charges/fees/interest), access to electronic transactions, banks effort to inform customers about new products and services and accuracy of banking records. In addition, the study found out that customers were satisfied with efficiency of customer service and accuracy of transactions. The study also found out that customers were satisfied with the fact that the bank had efficient service, listens and is sensitive to customers’ needs. Customers were not satisfied with many branch locations that the bank had. The study finally found out that customers perceived the image of the bank as trustworthy, reliable, stable, distinctive/unique compared to others, widely-known and involved in the community. The study recommends that banks should streamline processes with automated reconciliations and keep their records up-to-date to enhance accuracy of banking records, increasing efficiency and effectiveness. The study also recommended that banks should be involved in more corporate social responsibility activities in order to involve the community and even empower the community. This will enable banks have a good image. In addition, organizing employees into quality circles can be an effective way to identify and address problems | en_US |
