Service Quality And Customer Retention In Commercial Banks. A Case Study Of Stanbic Bank, Kabalagala Branch Kamapala Capital City Authority, Uganda

ABSTRACT

This study was based on an analysis of the effect of service quality on customer retention in

commercial banks. It focused on critically examining the following objectives; (1) To find out the

factors that determine service quality in commercial banks; (ii) To find out ways of managing

service quality in commercial banks; (iii) To determine the relationship between service quality

and customer retention in commercial banks. The study used a descriptive cross sectional survey

design which included both qualitative and quantitative methods of data collection. The

quantitative method was used to collect numerical data in form of numbers representing

particular facts or measurement which helped the researcher to obtain information from

respondents in depth. While the qualitative method explored a wide array of dimensions like the

texture and leave of everyday life, the understanding and experiences of the research participants

and the significance of the meaning they generate. After conducting the study, findings revealed

that service quality and customer retention both go hand in hand and this meant that Stanbic bank

should improve on their service quality and implement more efficient management systems

because the higher the service quality the higher the customer retention in the bank. And from

the findings of the study and the conclusions drawn, the researcher came up with

recommendations to ensure that management of service quality is emphasized and these as

included; more training of workers in order to improve their knowledge about work and service

delivery 1; Good customer care to maintain and expand the market reach; Physical facility

extensions in order to create space for offering quality services to customers with no congestion among others.