Customer Retention Strategies: A Study of Ghanaian Banks

Abstract

Customer retention is an important element of banking strategy in today’s increasingly competitive business environment, and the banking industry in Ghana is not an exception. This paper therefore aimed at studying the relative importance of retention Strategies that influence customers’ to make continual patronage of banking services within the banking industry in Ghana. Namely: (1) bank service quality (2) customer relationship management (3) switching barriers and (4) loyalty rewards. The study employed the survey method to collect data from 410 banking customers. Ordinary Least Square (OLS) regression analysis was employed to test strategies that influence customers repeat patronage of banking services. Findings of the study revealed that, with the exception of Switching Barriers (SB), the remaining three constructs i.e. Bank Service Quality (BSQ), Customer Relationship Management (CRM) and Loyalty Rewards (LR) all have positive significant effects on bank customer retention within the Ghanaian banking industry.

Keywords: Bank customer retention, Strategies and Ghana.