Customer Relationship Management Practices and Customer Retention at Ghana Commercial Bank (GCB) in Tamale: Mediating Role of Customer Satisfaction

Abstract

With the recent increase in bank closures, attracting new customers and developing strong customer relationships in Ghana's financial sector has become difficult. As a result, customer retention in banking has become critical for fund mobilization and license maintenance. The study sought to investigate the effect of CRM practices and customer satisfaction on customer retention at GCB bank, Tamale. The quantitative research approach and the explanatory design were employed due to the purpose of the study. Structured questionnaire was used to gather data from all the 367 customers of GCB bank in Tamale. The data obtained were processed using Statistical Package for Social Sciences (SPSS) version 25 and analyzed using descriptive and inferential tools. The purpose of this study was to investigate and establish a comprehensive framework to identify customer relationship management practices on customer retention through the mediating role of customer satisfaction. The study discovered a significant positive relationship between customer relationship management practices and customer retention, as well as customer satisfaction playing a mediating role in this relationship. As a result, Ghanaian banks are implored to implement effective customer relationship marketing strategies in order to retain their customers.

Keywords:Customer Relationship Management (CRM) Practices, Customer Retention, Customer Focus, Knowledge Management, Technology-based CRM, Customer Satisfaction.

DOI: 10.7176/JMCR/85-02

Publication date: February 28^th 2022