CUSTOMER ATTRACTION AND RETENTION IN NIGERIAN BANKING SECTOR; AN EMPIRICAL INVESTIGATION

Abstract

Customer attraction and retention are undoubtedly critical to the success of any organization. In today's increasingly competitive banking environment, customer retention represents an essential element of banking strategy, just as customer attraction to a bank's products or services is often regarded as the key to organizational success and market relevance. This study surveyed 500 customers from ten selected banks in Edo and Delta States, Nigeria. The findings reveal a positive and statistically significant relationship between factors influencing customer attraction and those affecting customer retention (ρ = .737, p < .01). The results indicate that convenient location and branch network, speed of service, staff attitude and behavior, efficiency in complaint handling, and positive word-of-mouth represent the most influential factors affecting both attraction and retention. Therefore, banks should not only strive to achieve desired levels of customer retention but should also be strategically positioned to attract potential customers through comprehensive service quality enhancement and relationship management initiatives.