Abstract

This study examines the effect of customer satisfaction on customer retention at UNICS Bank Buea, Cameroon. The research focuses on three key determinants of customer satisfaction: service quality, customer service, and repeat purchase behavior.

A quantitative approach was employed, utilizing a structured questionnaire administered to 100 customers selected through convenience sampling. Descriptive and inferential statistical analyses, including regression analysis, were conducted to assess the relationships between the variables.

The findings reveal a significant positive relationship between customer satisfaction and retention, with service quality (β = 0.484, p = 0.005) and customer service (β = 0.512, p = 0.001) emerging as the strongest predictors. Repeat purchase behavior also showed a notable impact (β = 0.337, p = 0.003). Despite high overall satisfaction, areas such as staff professionalism, complaint resolution, and digital service quality were identified as requiring improvement. The study concludes that enhancing service quality, improving customer service responsiveness, and fostering repeat purchase behavior are critical strategies for boosting customer retention at UNICS Bank Buea.

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

It is an obvious fact that every organization tends to move to a position where customer satisfaction is giving a favorable consideration. In other words, customer satisfaction is a construct that must be met optimally for efficient and effective achievement of stated objective, and for smooth continuation of businesses. Customer satisfaction is an integral part of organizational objective that must be fulfilled for an organization to maintain its customers. These are valuable asset that must be properly kept satisfied. The existence of any business oriented organization is a performance of the business activities that will flow from the organization to identified target customers to the provision of need satisfying packages in order to satisfy the needs of the customers, and achieve the stated objective set by the organization.

The Satisfaction of the needs of the respective customers there by gives room for an opportunity to retain the customer and create customer loyalty for continuous patronage. In a similar manner, customer retention is a strong Indicator of organizational objectives. The level is customer retention dictates to some extent the level of achievement of organizational, objectives. In other word, if customers fail to patronize or repeat the purchase of the product of the organization, definitely sales and profitability of the organization will drop which will adversely affect the entire performance of the firm.  In a nutshell, the degree at which organization retain their customers depends to a large extent the degree of satisfaction derived from the products of the organizations.

In Cameroon, the importance of customer satisfaction In today’s dynamic corporate environment is obvious as it greatly influences customers repurchase intentions whereas dissatisfaction has been seen as a primary factor for customers’ retention to switch (Faiza et Al 2001). It is therefore obvious for business organization to create and maintain favourable relationship with their customers in order to not only give room for repeat purchase but also create room for customer retention. When there is a favourable  relationship between the organization and the customer , customers tend to repeat purchase and continue patronizing the organization, thereby telling their favourable experiences with members bot the society which can have positive effect on the organization . More so, dissatisfied customers are more likely to tell people about their unfortunate experiences which will negatively affect the performance of the organization. In other to achieve customer satisfaction, organization must be able to build and maintain long lasting relationship with customers through satisfying various customers’ needs and demand which resultantly motivates them to continue to do   business with the organization on- going   basis (La Barbera and Mazursky, 1983).

Ibojo (2014) was of the view that, one organization too constantly within its numerous customers in this competitive global village, there is need to strategically constantly satisfying the needs of the customers. He was of the opinion that is satisfied and retained Customer will give room for repeat purchase why unsatisfied customer may decide to switch to other brands or competitive brands of the organizations. customer satisfaction is an integral part of business objectives of any organization irrespective of the nature of the organization and however, more pronounced in business oriented organizations can be achieved through understanding the needs of the target market on the provision of neat satisfaction packages in meeting and satisfying these needs at a greater extent, thus, building and maintaining long-lasting and favorable relationship with the target market.

The need to create and maintain customer satisfaction has been emphasizing by researchers and academicians. This is because the realization of other business objectives leans on the level and degree of satisfaction received by the target market. This is the reason why organizations are focusing on customer satisfaction and customers’ retention. Customer satisfaction is the foundation for any organization to retain its existing customers (Khan, 2002). He was off the opinion that customers who are satisfied are likely to have positive relationship with the organization. It is therefore necessary for organization to make sure that all activities came to the satisfaction of their customers. This will keep it path way for customers to see the possibility of integrating the loyalty with the organization, taking into cognizance continued purchasing and repurchasing of the organization’s products.

UNICS Bank Buea has not only work on satisfying customers but they have also worked on retaining their customers in the past years this can be seen by organizing loyalty Programs and participating in other programs like sponsorship programs with ball this put together they are customers who have stayed in the bank due to the availability of information the quality services provided.

Customer satisfaction has played an important role  in UNICS Bank of Buea in the sense that many customers have been retained   due to customer satisfaction  and good quality services which  is been rendered in the bank this has made many customers to bring other people into  the bank through words of mouths

1.2 Statement Of The Problem

Despite the importance of customer satisfaction, UNICS Bank Buea struggles to meet customer expectation. In some cases, the waiting is in overcrowded and poorly ventilated hall without comfortable seating arrangements. Most commercial baking in Cameroon may be characterised by slow services, lack of specialization. This can lead to customer dissatisfaction, negative word- of- mouth, and ultimately, customer defection. There could also be the problem of lack of awareness by the customers in the rural areas, or outright ignorance of new inventions in the modern banking services. Understanding the effect of customer satisfaction von customer retention is essential for UNICS Bank Buea to develop effective strategy to improve customer loyalty.  The problem of increasing the level of customers’ dissatisfaction portends danger for the Cameroon banking industry. Also customer services of most commercial banks are very poor, which most at times drive customer away for example shouting at their customer for the least mistakes. The recent pandemic has also created a Barrier between the customers and the management since both parties of contacting the virus.

UNICS Bank Buea operates in a competitive market, facing challenges such as increasing customer expectations, technological advancements. To remain competitive, the bank needs to prioritize customer satisfaction and develop effective strategies to retain its customer base. Customers’ dissatisfaction reduces patronage, increases consumerism and consequently leads to reduction in profits and overall performance of the banking industry. Conversely, customer dissatisfaction can result in negative reviews, customer loss, and damage to the bank’s reputation. Specifically, UNICS Bank Buea needs to better understand the relationship between customer satisfaction and retention to develop effective strategies to retain its customers and maintain a competitive edge.

Finally , several research have been carried out on the influences of marketing customer satisfaction b, and customer retention but not even a single research has been carried on the impact of customers satisfaction  strategies on customer retention in UNICS Bank Buea. From my experience and observation UNICS Bank Buea treats customers well this can be seen in the context where they help customers or give them directives on how to fill their bank forms and their  friendly mature wire their customers is something other banks or some have failed to do.

1.3 Research Questions

1.3.1 Main Research Questions

• What is the effect of customer satisfaction on customer retention in UNICS Bank Buea?

1.3.2. Specific Research Questions

1. What is the effect of service quality on customer retention in UNICS bank Buea?
2. What is the effect of customer service on customer retention in UNICS bank Buea?
3. How does repeat purchase guarantee customer retention in UNICS bank Buea?

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