Impact of Service Quality on Customers Retention of Selected Deposit Money Banks in Awka, Anambra State

Abstract

This study examined the impact of service quality on customer retention of selected deposit money banks in Awka, Anambra State. The objectives of the study were to: assess the impact of banks' reliability on customer retention of selected deposit money banks in Awka, Anambra state; ascertain the impact of banks’ responsiveness to complaints on customer retention of selected deposit money banks in Awka, Anambra state, and determine the impact of banks’ staff empathy on customer retention of selected deposit money banks in Awka, Anambra state. The study was anchored on the SERVQUAL Model theory, propounded by Parasuraman, Zeithaml and Berry in 1985. The study employs descriptive survey research design, using primary data obtained from questionnaires shared to customers of the selected deposit money banks. The total population of the study was 742 respondents. The Taro Yammne formula for sample size determination was use to deduce the sample size of the study to be 260. Descriptive statistics and Pearson Moment Correlation Coefficient was adopted to analyze the data gotten from respondents. The findings of the study revealed that banks’ reliability has a significant impact on customer retention, banks’ responsiveness to customer complaints has a significant impact on customer retention, and banks’ staff empathy has a significant impact on customer retention of selected deposit money banks in Awka, Anambra state. The study recommended that banks should improve service reliability by instituting systems that ensure accurate information delivery and consistent service performance; customer complaints should be handled more promptly and professionally, with better communication channels for follow-up and resolution; and empathy training should be provided to frontline staff to enhance their ability to recognize and respond to the personal banking needs of customers.