Relationship Management and Customer Retention in the Banking Sector: A Case Study of Akure Metropolis, Nigeria

Research Paper

  • BANKOLE, O. A Ekiti State University, Ado-Ekiti, Nigeria
  • EGUABO, R. O.
Keywords: Relationship Management, Customer, Retention.


This paper is to study customer relationship management and customer retention in the banking sector. The specific objectives are to: determine the relationship between service quality and customer retention; investigate the relationship between technology adoption and customer retention; access the relationship between complaint handling and customer retention in the banking sector. A descriptive survey research design was adopted through the questionnaire. Customers of three selected banks: Access/Diamond bank, Guarantee trust bank and Zenith bank constituted the study population. The sample size was 300 which were selected using homogeneous purposive sampling. Primary data used for the study were gathered through a structured questionnaire. Data gathered were analyzed using the Pearson product-moment correlation. The result showed that there is the relationship between service quality and customer retention; furthermore, it showed that there is the relationship between technology adoption and customer retention and finally, it showed that there is the relationship between complaint handling and customer retention. Thus, the study concluded that customer relationship management is positively related to customer retention in Akure Metropolis.


Ahmad, R., & Buttle, F. (2001). Customer retention: a potentially potent marketing management strategy. Journal of Strategic Marketing, 9, 29-45.

Al-Qeed, M. A., ALsadi, B. Y., & Al-Azzam, Z. F. (2017).The Impact of Customer Relationship Management on Achieving Service Quality of Banking Sector of Jordan. International Journal of Business and Management, 12(3), 180-190.

Ali, M., & Raza, S. A. (2015). Factors affecting to select Islamic credit cards in Pakistan: The TRA model. MPRA paper number. 64037, University library of Munich, Germany.

Ball, D., Coelho, P. S., & Machas, A. (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI model. European Journal of Marketing, 38(9/10), 1272-1293

Boone, L. & Kurtz, D. (2013). Contemporary marketing. Cenage.

Boshoff, C., & Allen, J. (2000). The influence of selected antecedents on frontline staff’s perceptions of service recovery performance. International Journal of Service Industry Management, 11(1), 63- 90

Boulding, W., Staelin, R., Ehret, M., & Johnston, W. J. (2005). A customer relationship management roadmap: What is known, potential pitfalls, and where to go. Journal of marketing, 69(4), 155-166.

Canel, C., Rosen, D., & Anderson, E. A. (2000). Just in time is not just for manufacturing: A service perspective. Industrial Management and Data Systems, 100(2), 51-60

Caruana, A. (2002). Service loyalty: the effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 8, 811- 828.

Chi, C. G. & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management, 28(2) 245-253.

Culiberg, B., & Rujsek, I. (2010). Identifying service quality dimensions as antecedents to customer satisfaction in retail banking. Economic and Business Review, 12(3), 151-166.

Curran, J. M., & Meuter, M. L. (2005). Self-service technology adoption: comparing three technologies. Journal of services marketing, 19(2), 103-113.

Dominici, G., & Guzzo R. (2010). Customer Satisfaction in the hotel Industry-A case study of Sicily. International Journal of Marketing Studies, 2(2), 3-12.

Dyché, J. (2002). The CRM Handbook, A Business Guide to Customer Relationship Management, Addison – Wesley, Information Technology Series.

Dyche, J. (2010). The CRM handbook: A business guide to customer relationship management. London, Wesley Educational Publisher Inc.

Erdis, C. (2009). Investing customer service in selected restaurants in the Tshwane area – An exploratory study. (master’s thesis, University of South Africa, 2009).

Fill, C. (2005). Marketing Communications: contexts, strategies, and applications (4th ed.). Pearson Education Limited, New York.

Fisher A (2001) Keys of winning the battle for customer satisfaction. Financial marketing journal 5 (1), 45-56.

Giese, J. L. & Cote, J. A. (2000). Defining consumer satisfaction. Academy of Marketing Science Review, 20 (1) 1-20.

Githinji, L. N. (2017). Influence of customer relationship management capabilities on performance of Commercial Banks in Kenya (Thesis). Strathmore University. Retrieved from http://suplus.

Gronroos, C. (1988). Service quality: The six criteria of good perceived service. Review of business, 9(3), 10.

Gyung K., M., Wang, C., & Mattila, A. S. (2010). The relationship between consumer complaining behaviour and service recovery: An integrative review. International Journal of Contemporary Hospitality Management, 22(7), 975-991.

Hansemark, O. C., & Albinsson, M. (2004). Customer satisfaction and retention: the experiences of individual employees. Managing Service Quality: An International Journal, 14(1), 40–57.

Heinonen, K. (2014). Multiple perspectives on customer relationships. International Journal of Bank Marketing, 32(6), 450-456.

Ivanauskiene, N., & Auruskeviciene, V. (2009). Loyalty programs challenges in retail banking industry.Economics and Management, (14), 407-412.

Jain, R., Jain, S., & Dhar, U. (2007). CUREL: A scale for measuring customer relationship management effectiveness in service sector. Journal of Services Research, 7(1).

Jeong,Y., & Lee, Y.(2010). A study of customer satisfaction and customer loyalty of furniture purchasers in on-line shopping. Asian Journal on Quality, 11(2), 146-156

Knox, S., Payne, A., Ryals, L., Maklan, S., & Peppard, J. (2007). Customer relationship management. Routledge.

Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking technologies by US consumers. International Journal of Bank Marketing, 22(4), 238-259.

Kotler, P. & Keller, K. L. (2006). Marketing Management (12th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Kotler, P. (2005). Manajemen Pemasaran di Indonesia: Analisis, Perencanaan, Implementasi dan Pengendalian. Jakarta: Penerbit Salemba Empat.

Kotler, P., & Armstrong G., (2010). Principles of Marketing. Pearson Prentice Hall, (3rd ed.). New Jersey, NJ, 259-262.

Krishnamoorthy, V., & Srinivasan, R. (2013). The impact of customer relationship management on loyalty in Indian Banking Sector: An empirical Study. International Monthly Refereed Journal of Research In Management and Technology, 11(6), 150-161.

Kuisma, T., Laukkanen, T., & Hiltunen, M. (2007). Mapping the reasons for resistance to Internet banking: means-end approach. International Journal of Information Management, 27(2), 75-85.

Lassar, W. M., Manolis, C., & Winsor, R. D. (2000). Service quality perspectives and satisfaction in Private Banking. Journal of Services Marketing, 14(3), 244-271.

Leninkumar, V. (2017). The relationship between customer satisfaction and customer trust on customer loyalty. International Journal of Academic Research in Business and Social Sciences, 7(4), 450-465.

Lymperopoulos, C., Chaniotakis, I. E., & Soureli, M. (2013). The role of price satisfaction in managing customer relationships: The case of financial services. Marketing Intelligence and Planning, 31(3), 216-228.

Maxham, J. G., & Netemeyer, R. G. (2002). A longitudinal study of complaining customers’ evaluations of multiple service failures and recovery efforts. Journal of marketing, 66(4), 57-71.

Moenir, (2008). Manajeamen Pelayanan Umum di Indonesia. Jakarta. Penerbit: PT. Bumi Aksara.

Molapo, M. E., & Mukwada, G. (2011). The impact of customer retention strategies in the South African cellular industry: The case of the Eastern Free State. Journal of Business, Humanities and Technology, 1(2), 52-60.

Manrai, L. A., & Manrai, A. K. (2013). A field stud of customer switching behaviour for bank services. Journal of Retailing of Consumer service, 14(3), 208-215.

Mwirigi, R. N. (2018). Customer relationship management and satisfaction of commercial banks’ account holders in Nairobi city county, Kenya. A Published Thesis Submitted to the School of Business in Fulfilment of the Requirement for the Award of the Degree of Doctor of Philosophy in Business Administration.

Nasution, F. N., & Rafiki, A. (2018). The effect of CRM on organization performance: A study of medium enterprises In Indonesia. Journal of Entrepreneurship Education, 21, 1-10.

Nguyen, T. H., Sherif, J. S., & Newby, M. (2007). Strategies for successful CRM implementation. Information Management & Computer Security, 15(2), 102–115.

Ohaka, C. N. (2015). Relationship management and the impact on organizations’ performance: A survey of the banking sector in Port Harcourt. Unpublished MBA thesis, department of Marketing, University of Port Harcourt, Nigeria.

Opara, B. C., & Opara, D. N. (2016). Customer Relationship Management and Banking Sector Market Share performance. International Journal of Business and Management Invention, 5(12), 13-21

Padmavathy, C., Balaji, M. S., & Sivakumar, V. J. (2012). Measuring effectiveness of customer relationship management in Indian retail banks. International Journal of Bank Marketing, 30(4), 246–266.

Radomir, L., Wilson, A., & Mircea, S. A. (2011). Improving Bank Quality Dimensions to Increase Customer Satisfaction. Management and Marketing Journal, 9(1), 126-148.

Rajaobelina, L., & Bergeron, J. (2009). Antecedents and consequences of buyer-seller relationship quality in the financial services industry. International Journal of Bank Marketing, 27(5), 359-380.

Raza, S. A., & Hanif, N. (2013). Factors affecting internet banking adoption among internal and external customers: A case of Pakistan. International Journal of Electronic Finance, 7(1), 82–96.

Riquelme, H. E., & Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of bank marketing, 28(5), 328-341.

Ryals, L., & Knox, S. (2007). Measuring and managing customer relationship risk in business markets. Industrial Marketing Management, 36(6), 823-833.

Saxena, R. P. & Khandelwal, P. K. (2011) Exploring customer perception and behaviour towards CRM practices in banking sector: An empirical analysis', International Journal of Interdisciplinary Social Sciences, 5(9), 375-391.

Schneider, B., & White, S. (2004). Service Quality Research Perspectives. Thousand Oaks: CA: Sage.

Siddique, A. B., Karim, K. S., & Rahman, M. L. (2011). Customers' perception about the determinants of service quality of foreign and domestic banks: an empirical study on bangladesh. Journal of Business and Technology, 1-14.

Siddiqi, T., Khan, K.A., & Sharna, S. B. (2018). Impact of customer relationship management on customer loyalty: Evidence from Bangladesh’s banking industry. International Journal of Business, Economics and Law, 15(5), 92-101.

Supranto, J. (2006). Pengukuran Tingkat Kepuasan Pelanggan: Untuk Menaikkan Pangsa Pasar. Jakarta: Penerbit Rineka Cipta.

Tan, M., & Teo, T. S. (2000). Factors influencing the adoption of Internet banking. Journal of the AIS, 1(1), 5.

Teikomensah, E. D. (2014). Determinants of customer satisfaction in retail banking in Ghana. Unpublished Master of Philosophy in Business Administration (Marketing option), department of Marketing and Customer management, University of Ghana, legon.

Tekin, M. (2013). Critical Success Factors for a Customer Relationship Management Strategy. Mediterranean Journal of Social Sciences, 4(10), 753.

Tjiptono, F. (2015). Strategi Pemasaran. Edisi Keempat. Yogyakarta: Penerbit Andi Offset.

Wang, Y., Po Lo, H., Chi, R., & Yang, Y. (2004). An integrated framework for customer value and customer-relationship management performance: a customer-based perspective from China. Managing Service Quality: An International Journal, 14(2/3), 169-182.

Wei, L. C. (2013). Determinants of Customer Satisfaction in Domestic Retail Banking Sector.Master of Business Administration), Universiti Tunku Abdul Rahman.

Zeithaml, V. A., & Parasuraman, A. (2004). Service Quality. USA: Marketing Science Institute

Zineldin, M. (2005). Quality and customer relationship management (CRM) as competitive strategy in the Swedish banking industry. The TQM Magazine, 17(4), 329-344.

How to Cite
BANKOLE, O. A, OGUNDIPE, C. F, ENITILO, O, OGUNDEPO, Y. O, OGHOGHO, V. O, & EGUABO, R. O. (2020). Relationship Management and Customer Retention in the Banking Sector: A Case Study of Akure Metropolis, Nigeria: Research Paper. International Journal of Research in Social Science and Humanities (IJRSS) ISSN:2582-6220, 1(2), 21-28. Retrieved from