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Factors Influencing Customer Retention in Banks

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Submitted By nyondo
Words 1446
Pages 6
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
For any business offering services or physical product/ goods depends on the availability of customers. No customers no business at all. Both internal and external customers if well satisfied with the product offered including quality and the extent to which their needs are met they will always wish to consume that product, from the same supplier .Banks as it is in any other business enterprises focuses much on retention of its customers and making them royal to their Bank
The rapid growing Banking industry and other financial institutions in Tanzania has lead to increased competition in wining customers and hence banks are struggling to retain their customers them .there is increasing evidence of the benefits of service management in service organizations. For example the benefits of maintaining long term relation ship with customers through quality performance and customer satisfaction has lead to marketing strategies to focus on defensive strategies that are based on retaining customers.For these reasons they have focused on relationship marketing to improve retention and customer relationship with service organizations.
1.2 STATEMENT OF THE PROBLEM
Customer retention the activity that a selling organization undertakes in order to reduce customer defections. various studies has been done to explore the factor tha influence of customer retention .

1.3. Objectives of the study
The following will be the objectives of the study:

i. To find out the factors that may hinder customer retention in an organization. ii. To identify the activities undertaken by the organization to improve customer retention. iii. To identify the role of employees in retaining customers. iv. To determine the problems facing customers and give possible recommendations on how to resolve them.

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