Enhancing Customer Retention through Electronic Service Delivery Channels in the Nigerian Banking Industry

Abstract

Successful customer retention consists of more than just giving the customer what they expect. Electronic service delivery channels have become a means through which banks achieve their objectives of business renewal and providing effective and efficient services. The main objective of this study is to examine the effect of electronic service delivery channels on customer retention in the Nigerian banking industry. The study made use of a sample of 235 employees from some selected banks in Asaba Metropolis in Delta State, Nigeria. Cross sectional survey research design method was adopted, and the statistical tools used comprised simple percentage, correlation and multiple regression analysis. Findings showed that point of sales service exhibited the relatively highest positive effect on customer retention. It was also revealed that online banking service, point of sales service and mobile banking have significant relationships with customer retention. The study concluded that the demand for POS technology seems currently high, however banks are now taping into this opportunity by making POS available at all times, so as to reduce queuing time in the bank and give customers convenience and control. It is therefore recommended that banks should collaborate with internet service providers because it will enable banks to better control quality of service as well as enhance user’s accessibility.