An investigation of factors affecting customer retention in Barclays bank of Kenya
Customer retention has been shown to be primary in firms that practice relationship marketing. Relationship maintenance costs fall as both customer and supplier learn more about each other. In addition, longer-term customers buy more and, if satisfied, may generate positive word-of-mouth promotion for the company. This study was motivated by the need to establish the factors which prevent and affect customer retention in banks in Kenya using a case study of Barclays Bank of Kenya. To achieve this objective, the study used a case study design approach. Data was collected from the customers of the Barclays Bank of Kenya using semi-structured questionnaires and an interview done on the staff of the Barclays bank. The quantitative data collected was checked for completeness, coded and entered into a computer for analysis. The data was analysed using descriptive statistics with the aid of a computer software SPSS. The study found that customer retention is influenced by accuracy of transactions, delivery of services, efficiency of customer services, physical appearance of the bank and the convenience of the branch locations. Further findings indicated that customer retention in banks is also influenced by the corporate image of the banks based on the stability, familiarity and reliability. Competitive advantage of the bank through advertisements, unique and distinctive products and competitive pricing were other factors influencing customer retention. The study recommends management puts strategies so as to satisfy their customers and to retain them and prevent them from switching to other banks. It also recommends that banks put in place a customer retention team to monitor and address issues contributing to customer switching and retention.