Service Recovery and Customer Retention among Banks in Ekiti State: Central Bank of Nigeria Cash Swap Policy Experience

Abstract

The study identified service recovery and the level of retention among bank customers in Ekiti State, Nigeria. The study embraced a descriptive survey research. Customers of eight banks like Access Bank, First Bank, Zenith Bank, GTco, Eco Bank, Wema Bank, Heritage Bank and UBA constituted the study population. Two hundred and forty (240) sample size through simple random sampling was employed. Primary data through administration of structured questionnaire to customers of the aforementioned eight banks in Ekiti State was used. The data retrieved were analysed using linear regression. The study found a significant effect of service recovery on customer retention (beta = 930, t= 12.397, P= 0.000 < 0.05) at 0.05 level of significance. In conclusion, service recovery significantly affects customer retention among banks in Ekiti State. The study recommended that bank management or managers should put up a retention strategy through service recovery that will help retain customers and preventing them from switching to other banks.