Mallam

RESEARCH PROPOSAL TOPIC: AN ASSESSMENT OF CUSTOMER RETENTION IN NIGERIA (A STUDY OF SOME SELECTED BANKS) BY ABDULLAHI Usman Shehu MBF/ADMIN/01232/2006-07 October, 2008 1.1BACKGROUND OF THE STUDY The banking industry today is extremely competitive with banks not only competing among each other; still also with non-banks and other financial institutions (Kaynak and Kucukemiroglu, 1992; Hull, 2002). Most bank harvesting developments ar easy to duplicate and when banks provide nearly monovular products or proceedss, they can only distinguish them on the root word of price and quality. Therefore, customer property is potentially an effective stopcock that banks can use to gain strategical advantage and postdate in todays ever-increasing competitive banking environment. One strategic focus that banks can implement to remain competitive is to cover as many customers as possible. The argument for customer retention is relatively straightforward. That is, it is more economical to keep customers than to acquire crude ones. The costs of acquiring customers to replace those that have been lost are high. This is because the expense of acquiring customers is incurred only at the early stages of the mercantile relationship (Reichheld and Kenny, 1990).

In addition, long-term customers may generate confident(p) word-of-mouth promotion for the bank. Furthermore, long-term customers also take slight of the banks time and are less metier to price changes (Healy, 1999). The key factors influencing customers selection of a bank acknowledge the range of services, rates, fees and prices charged (Abratt and Russell, 1999). It is apparent that superior service, alone, is not qualified to satisfy customers. Prices are essential, if not more important than service and relationship quality. Furthermore, service excellence, meeting client needs, and providing innovative products such as ATM, Value cards, mobile banking etc are essential to succeed in the banking industry.... If you want to get a full essay, gear up it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .