EFFECT OF SERVICE RE-ENGINEERING ON CUSTOMER RETENTION OF SELECTED MONEY BANKS IN ILARO

*Fortune Ugochukwu Abiaziem¹ and Olanrewaju Isiaka Anafi²

ABSTRACT

The research examined significant impact of service re-engineering on consumer retention in Union Bank Nigeria Plc and Access Bank Nigeria Plc in Ilaro, Ogun State. The study objectives were to ascertain the effect of customer focus, process redesign, change management and culture change on customer retention. The researcher used a survey study approach. The two banks’ full bankable customer base in the area under examination makes up the population. The respondents from the survey aimed at bank clients were chosen using a straightforward random sample procedure. The Cochran formula was used to determine the study’s sample size, which was 385 respondents. The study used a structured questionnaire using a 6-point Likert scale. With the help of (SPSS) version 23, data were examined using percentages and hypotheses were tested using the Chi-Square parameter. The results of the study showed that there is a substantial correlation between service re-engineering elements and customer retention. Additionally, among the variables examined, customer focus, change management, and cultural change are significant, however process redesign is not. In order to keep potential consumers, the researchers advised banks to continue process redesign initiatives.

Keywords: Customer Focus, Change Management, Culture Change, Process Redesign, Customer Retention.