An Evaluation of Customer Retention Strategies in Enhancing Market Share Growth among Listed Commercial Banks in Nakuru County

Commercial banks have in the recent past been faced with a lot of competition emanating from liberalization of the financial sector and frequent financial legislations. Thus, customer retention has become a major objective of many commercial banks. This study sought to evaluate the influence of customer retention strategies in enhancing market share growth in listed commercial banks in Nakuru County. A sample of fifty respondents was selected through census sampling. Data was collected by the use of questionnaires and analyzed using descriptive and inferential statistics with the aid of the Statistical Package for Social Sciences (SPPS). The study established that there was a positive relationship between customer relationship marketing and market share growth. 14.5% of market share growth was explained by customer relationship marketing. The study also concludes that there was positive, moderate relationship between customer communication and market share growth. 10.8% of market share growth was explained by customer communication. The study recommends that customer retention strategies should be enhanced in listed commercial banks in the Nakuru County in order to increase market share growth. It is also recommended that listed commercial banks should expand their market share through customer relationship marketing and customer communication. It is also recommended that there should be strong emphasis on the mutual relationship between commercial banks and bank customers as this would minimize customer switch and defections.