Factors Affecting Customer Retention In Courier Companies In Kenya

Abstract

The main purpose of this research study was to determine factors affecting customer retention in courier companies in Kenya. “The study was guided by a number of research questions. Does relationship representative affect customer retention, does credit affect customer retention, does branding affect customer retention and does cost of switching affect customer retention in courier companies in Kenya. The study was quantitative and adopt a descriptive cross sectional survey design which is mainly used in preliminary and exploratory research studies. Primary data shall be collected from the courier companies using questionnaires. A population of 253 registered courier companies in Kenya was contacted. Data was coded in statistical package for social sciences (SPSS) and analysed by descriptive statistics and inferential statistics. Diagnostics test conducted were normality heteroscedasticity and multicollinearity and they met the criterion for regression analysis. The findings indicated that Relationship Representative and Customer retention in courier companies is positively and significantly related (β=0.315, p=0.000). The findings further indicated that Payment Credit and Customer retention in courier companies is positively and significantly related (β=0.143, p=0.048). Product Branding and Customer retention in courier companies is positively and significantly related (β=0.503, p=0.000). Lastly, the findings indicated showed that Switching Cost and Customer retention in courier companies is positively but insignificantly related (β=0.022, p=0.787). The study concluded that relationship representative, payment credit, product branding had a positive and significant effect on Customer retention in courier companies. However, the relationship between cost of switching and customer retention in courier companies was not significant. The study recommends that the courier firms should have relationship representatives to build customer relationships as they are important because they increase sales, reduce customer attrition, deliver invaluable marketing, boost employee morale and turn customers form more market information. The study recommends that the courier firms can offer reasonable credit to the customers based on their creditworthiness. The study recommends that due to the high competition, they should continually embark on product branding. Branding will make a memorable impression on consumers and allow the customers and clients to know what to expect from the courier firm.”