Investigating the Key Factors Influencing Customer Retention and Enhancing Retention Strategies in the Sri Lankan Banking Industry : An Empirical Study on Customer Retention Strategies

Abstract

The modern era has given enormous changes in bank operations with the development of digital tools and emerging trends. Customer retention is considered as a key contributor for the success of the bank. Thus the focus of this study is to investigate the influence of customer satisfaction, customer loyalty and customer relationship management in customer retention and to enhance the retention strategies by identifying reliable insights. Research conducted in quantitative approach. Online Survey questionnaire designed with google forms distributed among 113 sample customers and totally 112 complete responses were returned. Three hypothesis were developed by reviewing existing literatures. SPSS software version 29.0.1.0 (171) used to analyse the collected data. The results findings indicated that there is a significant positive correlation exists among customer retention, customer satisfaction, customer loyalty and customer relationship management. Moreover, customer relationship management has recorded as the highest influencing factor with high significant relationship. Further study provided the key findings, limitations, recommendations for the banking industry on how to enhance the retention strategies. Study also provided suggestions for the future research in this particular topic. The study concluded by stating suitable customer relationship management and satisfactory service performance could pave way to customer retention by creating long term loyalty.