Authors: Samuel Famiyeh; Jasper Tetteh Ahafianyo; Bridget Benneh
Addresses: GIMPA Business School, Ghana Institute of Management and Public Administration, P.O. Box AH 50, Achimota, Accra, Ghana ' School of Public Services and Governance, Ghana Institute of Management and Public Administration, P.O. Box AH 50, Achimota, Accra, Ghana ' Barclays Bank Ghana Limited, P.O. Box GP 2949, Accra, Ghana
Abstract: This study investigates the relationship between customer retention and customer relationship management (CRM) constructs represented by five dimensions namely bonding, empathy, reciprocity, trust and responsiveness using data from five branches of a bank in Ghana. Structured questionnaires were used in collecting data from 282 respondents who were customers of these branches. The results indicate the existence of a positive relationship between customer retention and four of the dimensions of customer relationship construct namely bonding, reciprocity, trust and responsiveness. Empathy was removed from the analysis owing to its low reliability value. The results also provide new insights into CRM and customer retention in the banking sector of Ghana. The study also indicates a strong relationship between reciprocity and bonding as well as responsiveness and trust. It is, therefore, important for banks to develop strategies to reciprocate and to be responsive to increase the switching costs of their customers.
Keywords: CRM; customer relationship management; customer retention; service quality; Ghana; banking industry; bank customers; bonding; empathy; reciprocity; trust; responsiveness; switching costs.
International Journal of Electronic Finance, 2015 Vol.8 No.2/3/4, pp.202 - 217
Accepted: 20 Jan 2015
Published online: 08 Jul 2015 *