The effects of customer retention strategies on customer satisfaction The case of Dashen bank

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Addis Ababa University


Customer retention is the activity that an organization undertakes in order to reduce customer defections.Considering highly competitive, complex and dynamic environment of the banking industry together with slight differences which exist in financial products and services best and appropriate customer retention strategy and satisfying customer are important issues. The purpose of the study was to examine the effects of retention strategies on customers satisfaction in the case of Dashen bank. The study focused on fivedimensions namely; customer relation management, trustworthiness, customer centricity, gifts and E-banking services which can affects customer satisfaction in three selected branches of Dashen bank. The study used quantitative research approach and the researcher employed descriptive explanatory research design to answer questionnaires and to analysis and explain the result by using descriptive statistics. Inferential statistics was used to analyses the correlation between variables using SPSS 2020. Regression analysis was made to identify the effects and significance of independent variables on dependent variable. Convenient sampling techniques was used to select the sampled respondents. Total of 394 self-administered questionnaires were distributed to the respondents and 376 questionnaires were collected and analyzed properly.The result of the study revealed that four of the five dimensions of retention strategies( customer relation management, trustworthiness , customer centricity and e–banking service) have positive and significance effects on customer satisfaction and the gifts provided by the bank has negative and insignificant effects on satisfaction



Customer relation management, trustworthiness, customer centricity