THE EFFECT OF CUSTOMERS RELATIONSHIP MARKETING ON CUSTOMER RETENTION: A CASE OF UNITED BANK S.C

Abstract

This study was conducted with an objective of identifying effect ofcustomer relationship marketing on customer retention in United Bank S.C. It conceptualized and developed five dimensions of customer relationship marketing:social bonding, empathy, reciprocity, responsiveness and trust. This study used both descriptive and explanatory research designs. Random sampling method was used. Data were collected from primary sources through questionnaire analyzed through both descriptive and inferential methods. The descriptive analysis was conducted by using mean and standard deviation. On the other hand, inferential analysis was conducted by using Pearson correlation method and ordinary least square multiple regressions (OLS) method. The result indicated that customer relationship marketing has significant on customer retention. Social bonding, empathy, reciprocity, responsiveness and trust have significant positive effect on customer retention of the bank. Based on the findings the researcher recommends that management of the bank has to improve bonding, empathy, reciprocity, responsiveness and trust.