CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES AND CUSTOMER RETENTION AMONG NEW GENERATION COMMERCIAL BANKS IN AKWA IBOM STATE, NIGERIA

Abstract

Consumer retention poses a significant challenge for new generation commercial banks in Akwa Ibom State, Nigeria, as fierce competition and evolving consumer expectations necessitate enhanced customer relationship management techniques. This research investigated the impact of relationship management practices on customer retention in new generation commercial banks in Akwa Ibom State, Nigeria. The study aimed to assess the influence of customer engagement, communication quality, and customer trust on customer retention. A survey study approach was employed, and primary data were gathered using a structured questionnaire. A sample of 384 customers was extracted from an infinite population utilising Cochran’s Sample Size formula. The data was analysis using regression techniques. The findings indicated that all three dimensions of customer relationship management practices (customer engagement, communication quality, and customer trust) exert a strong positive influence on customer retention in new-generation commercial banks in Akwa Ibom State, Nigeria. The authors concluded that customer engagement, communication quality, and customer trust are essential factors influencing customer retention in new-generation commercial banks in Akwa Ibom State, Nigeria. Based on findings, it was recommended that New-generation commercial banks in Akwa Ibom State should prioritise and actively improve customer engagement techniques, including personalised communication, loyalty programs, and interactive digital platforms, as these methods substantially promote customer retention. The banks are also encouraged to adopt a holistic communication enhancement strategy that prioritises clarity, timeliness, and responsiveness across all customer contacts, including digital platforms, call centres, and in-branch engagements.The study further recommended that prioritise the establishment of customer trust via clear communication, consistent service delivery, and robust relationship management, as trust is fundamental to retention and enduring loyalty.