Effectiveness of the customer retention strategies applied by Commercial Banks In Kenya
This study was designed to establish the strategies adopted by commercial banks in Kenya to retain customers and to determine the management perception of the effectiveness of customer retention strategies adopted by commercial banks in Kenya to retain customers. A descriptive research design was employed in this study. The population of interest comprised of all 44 commercial banks in Kenya. Total 44 managers involved in strategy implementation shall be picked to represent the entire population. The sample size is preferred because its manageable. A semi-structured questionnaire composed of three sections was used to collect primary data where the respondents were accessed through an interview and drop-and- pick later method. A five point likert-type scale was used to measure the extent of satisfaction on effectiveness. Data was collected and analyzed using SPSS package. Descriptive statistics were used to describe and analyze the extent of effectiveness between the various strategies applied. The study found that commercial banks applied product innovativeness to a very great extent. In addition, commercial banks applied long working hours, cross selling, employee training and customer relationship management to a great extent. The study established that long working hours, employee training, product innovativeness and cross selling was perceived as more effective. Loyalty programmes, quality service based on the findings of the study as summarized above, it can be concluded that commercial banks in Kenya various retention strategies. Success in retaining customers was attributed to a combination of strategies being pursued. The study concludes that long working hours, employee training, product innovativeness and cross selling were strategies perceived as effective in retaining customers. Strong brands have the ability to attract and retain customers. Commercial banks to adopt customer retention strategies and ensure they are effective. Firms need to analyze their customers before coming up with strategies of retaining them. Banks need to come up with ways of rewarding the sales force for retaining customers. Organizations should endeavor to create value for their customers.