Retention Strategy and Customer Loyalty: An Analysis of the selected 2nd Generation Banks, Ilorin, Nigeria

Abstract

This study examined the effect of retention strategies on customer satisfaction as evidenced by the selected 2nd generation banks within the Ilorin metropolis. Two research objectives were raised to guide the conduct of this study; (i) identify how the retention strategy (customer relationship management) adopted by the selected 2nd generation banks enhances customer satisfaction, and (ii) investigate the effect of the retention strategy (service quality delivery) on customer satisfaction of the selected 2nd generation banks. The study utilized a descriptive research design and collected data through a cross-sectional survey method. Three hundred and seventy-nine (379) validated questionnaires were distributed to the respondents, but only three hundred and sixty-three (363) were found usable, sorted, edited, and coded for the analysis. Findings revealed that customer relationship management and service quality delivery have a significant effect on customer loyalty with R2 =85.6 and 83.2 respectively. The study recommended that businesses should treat customer loyalty as a priority and not an option. Also, adequate funding must be provided to achieve the customer retention program.