An Assessment of Strategic Responses Adopted by Commercial Banks in Kenya to Eniiance Customer Retention: A Case of Ecobank Kenya.

Abstract

The operating environment for businesses has become very dynamic following increased challenges of competition, globalization and internationalization of businesses. The purpose of the study was to assess the strategic responses adopted by commercial banks in Kenya to enhance customer retention using a case of Ecobank Kenya Limited. The study was guided by the following objectives: to determine the strategic responses adopted by Ecobank to enhance customer retention in Ecobank Kenya; assess the extent of use of the strategic responses adopted by Ecobank Kenya to enhancing customer retention; and evaluate the extent to which the strategic responses had led to customer retention at Ecobank Kenya. This study adopted a descriptive survey research design. The target population included all the 128 employees of Ecobank Kenya Limited working within Nairobi County. A sample size of 65 respondents was selected using stratified sampling technique. The study used questionnaires and interview in order to collect data. The completed questionnaires were checked for completeness to ensure consistency. The data was coded to enable the responses to be grouped into various categories. The study concludes that Ecobank had adopted different strategies to enhance customer retention, and that the bank had adopted technology adoption strategies, service quality, service recovery and product differentiation as strategies to enhance customer retention. Technology adoption, service quality, service recovery and product differentiation were used as customer retention strategies to a great extent at Ecobank Kenya. The study recommends that Ecobank continuously improves its technological infrastructure so as to serve its customers in a faster and effective manner. The bank should also adopt all the dimensions of service quality in its operations and continue to ensure the implementation of the service recovery strategies.