Customer Retention in the Banking Industry.. Case Study of Stanbic Bank Gh

1. ABSTRACT
The piece of work investigates the impact of customer retention in the banking industry
within the Sunyani municipality. The main objective of this study is (1) to examine the
loyalty and the customer profitably drivers in the banking industry, (2) to increase our
understanding by investigating the relationship between the banking industry and the
customers and (3) whether customers are willing to continue business with Stanbic
Bank. As Reichheld and Kenny (1990) asserted, the cost of acquiring customers is
incurred only in the beginning stage of the beginning stages of the commercial
relationship, therefore it is more economical to keep customers than to acquire new
once. It is important for companies in the financial institutions to view relationships
from their customer’s perspectives. The customers must be seen as the most valuable
asset of the service company. Our empirical analysis is based on a sample size of 40
respondents within Stanbic Bank in the Sunyani municipality through the use of
questionnaire, and descriptive statistical tool have been used in analysing the data
collected. After the analysis, it was deduced that the majority of the respondents are
satisfied with the various services of Stanbic bank and are willing to continue to
transact with the bank. Finally, it was identified that, customer satisfaction was a
determinant to the impact of customer retention in the banking industry which in turn
increase company’s profitability.
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