| dc.description.abstract | Banks need strategies to acquire customers and then understand their needs and
behaviours before they can meet with their needs in order to retain them. Customer
acquisition, as well as customer retention are noted to be the main issues facing the
industry today as a result of restructuring of the retail banking industry which has
been characterized by retail internationalization, new discoveries of technology, fierce
and ever increasing competition, economic uncertainties (economic recession) and
deregulation and regulations. The objective of this study was to determine the
customer retention strategies used by Barclays Bank of Kenya in its international
operations. This study was conducted through a case research design. Primary data
sources were used in this study where data was obtained through interactive
interviews. The nature of data collected was qualitative and was therefore analyzed
using content analysis technique. Through content analysis, responses from different
respondents were compared and summarized according to the objectives of the study.
The study found out that service quality at Barclays bank is high, because the bank
consistently delivers higher quality service than its competitors. The key to managing
customer satisfaction in Barclays is the measurement systems and the effective
interpretation on the feedback that the customers give to the bank. The factors that
affect customer satisfaction in Barclays bank were found to be; customers individual
attention, the behavior of employees instilling confidence in customers, physical
facilities with the bank should be appealing, no charges should be cut on outstation
cheques, error free, online banking facilities among others. The study concludes that
Barclays bank recognizes that quality service is a key to retaining their customers.
They have therefore put in place stringent measures to enhance quality of Service
within the Local and International Market. The study also concludes that Barclays
bank handle different customer complaints and the service failures such as
excessive/hidden fees were the most common complaints the bank handles,
unfavorable bank policies (e.g. granting loans) among others. To counter this bank
has high service recovery strategies such as not arguing with complaining customers,
received the best score, acting fast in resolving customer problems. Barclays Bank
achieves effective product strategy by identifying the target customers, differentiates
them into groups, interacts with each customer group, and provides customized
products and solutions in a cost-effective manner. Other strategies employed by the
bank to achieve good customer retention are Promotion mix, which includes
advertising, publicity, sales promotion, word-of–mouth promotion, personal selling
and telemarketing. Interest rates on loans, innovation and technological use, base rates
and the age of the banks, minimizing attrition, reviewing, attrition numbers, unfunded
accounts, and review of key processes / procedures to make them more effective and
introduction of loyalty /reward program for existing customers. The study
recommends that to enhance quality of service within the local and international
market the bank should formulate and implement measures to ensure that the bank
meets the needs and expectations of customers. The study also recommends that
Barclays bank should look at products and pricing based upon a total customer view
and respond to the value that customers bring to the bank across the spectrum of rates,
fees, features and services to improve product mix strategy to enhance customer
retention. | en_US |
