The Effectiveness of customer retention strategies employed by commercial banks in Zimbabwe

Author

Marumahoko, Kudzai

Title

The Effectiveness of customer retention strategies employed by commercial banks in Zimbabwe

Abstract

The aim of the research was to investigate customer retention strategies that could be used by commercial banks in Zimbabwe to gain a competitive advantage. The study used a descriptive research design and targeted a population of eligible bank customers and employees of commercial banks in Zimbabwe in Harare. Stratified random sampling was applied to select customers from all customers of commercial banks. Primary data was collected through questionnaires.The findings revealed that most commercial banks in Zimbabwe are not meeting customer expectations in terms of service quality. The dimensions of service quality, including reliability, responsiveness, assurance, empathy, and tangibles, were assessed and most banks failed to meet consumer expectations. According to the research findings the banks’ product innovativeness results in improved customer banking experience. The research revealed that retaining customers can lead to benefits such as increased market share and profit. A positive relationship between customer relationship management strategy and customer retention was also reviewed.To win customer loyalty in the current Zimbabwean economy, banks need to go beyond their desks to search for important service attributes that customers look for. They should invest more in improving the identified attributes and monitor changing customer needs and preferences to hedge against competition. Banks should continuously make use of product innovativeness to retain their customers.

Date

June 2023

Publisher

BUSE

Keywords

Customer Retention strategies,

Competitive advantage,

Commercial banks in Zimbabwe,

Supervisor

Mr. Jonas,