Service Quality and Customer Retention in Deposit Money Banks in Port Harcourt, Rivers State, Nigeria
DOI:
https://doi.org/10.31150/ajebm.v5i2.843Keywords:
Service Quality, Customer Retention, Customer Satisfaction, Empathy, Customer Loyalty, Tangibility, Deposit BankAbstract
The purpose of this study is to examine the relationship between Service Quality and Customer Retention in Deposit Money Banks in Port Harcourt, Rivers State, Nigeria. The population of the study involves staff from the 21 Deposit Money Bank in Port Harcourt, Rivers State, Nigeria. The sample size of this study was 168 staff that was selected randomly and 150 copies of the questionnaire were retrieved and used for the analysis. The hypothesis was tested using Spearman rank order correlation coefficient. Findings indicate that service quality and all its dimensions such as tangibility and empathy have significant and positive association with customer satisfaction and loyalty of customers towards their respective financial service providing organizations. The study concluded that there is a relationship between the two variables. In light of these, the study recommend that there is need for Deposit Money Banks in Port Harcourt, Rivers State, Nigeria to ensure that they remain reliable to their customers if indeed they need to remain competitive in the market. This is because customers are seen to be keen on the reliability of services offered to them from different banks in Port Harcourt. Banks can well achieve this by introducing back up services in the event of service breakdowns in the business process. The study also recommends the need for banks to innovate new ways of enhancing the way they respond to customer needs so as to avoid service breakdowns. This can well be achieved through the new communication channels such as the internet and the use of other social media platform or mobile telecommunication. This will go a long way in enhancing customer loyalty to their products and thus enhance customer retention.
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