The impact of customer service on customer loyalty and retention in Zenith Bank Ghana Limited

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August, 2016
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The study sought to examine the importance of excellent customer service in the banking industry using a case study of the Zenith Bank Ghana Limited. The study adopted a descriptive research design with a quantitative research approach. The study population encompassed management, staff and customers of 4 branches of Zenith Bank Ghana Limited. A respondents‘ sample size of 220 made up of 20 bank staff and 200 bank customers were selected from 4 branches in the Ashanti and Greater Accra regions. The study adopted both purposive sampling and simple random methods. Data was collected through questionnaire and interviews. Factor analysis, correlation and regression analysis were used to analyze data. Findings showed that the customers were generally satisfied with the customer service practices of Zenith Bank Ghana Limited. These practices were found to include effective staff, effective customer communication, show of respect, patience in service, competent service from bank staff, provision of fast electronic banking services, faster service through multiple service delivery channels, segmented customer services to promote faster service, good reception from first contact in the banking hall, quick response to customer complaints, great service at the door (usually by security) and good advisory service and effective staff. The study also showed that customer service was important because it determines the kind of feedback customers take outside to the general public. Customer service practices were also found to have significant impact on customer loyalty and retention. Based on the findings, the study recommended that management of the bank conduct a wider survey to spew out practices which receive low customer approvals. The study also recommends further training for staff to increase service delivery effectiveness.
A Thesis submitted to the School of Business, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the award of Master of Business Administration in Strategic Management and Consulting