INFLUENCE OF CUSTOMER RETENTION STRATEGY ON COMPETITIVENESS OF AUDIT FIRMS IN KENYA
INFLUENCE OF CUSTOMER RETENTION STRATEGY ON COMPETITIVENESS OF AUDIT FIRMS IN KENYA
Thomas Nyamweya - Jomo Kenyatta University of Agriculture and Technology, Kenya
Osieko O. M. - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Evidence from existing literature show that though customer focus approach is a philosophically-related offspring to relationship marketing captured under strategic customer relationship management, there is little empirical evidence on strategic application of customer centric approach in some competing profit oriented firms. This study therefore examined influence of customer retention strategies on competitiveness of audit firms in Kenya. The study was informed by differentiation theory and Resource Based View (RBV) theory. The study employed explanatory survey research design, and targeted 98 senior and middle level management staff from 14 registered audit firms whose headquarters is in Nairobi city county, Kenya. The researcher used census method and purposive sampling technique which is employed when the study has to pick respondents with the required information. The researcher collected primary data by means of self-administered structured questionnaires designed in multiple choice formats. The research instrument was pretested in an established audit firm in Nairobi, Content and construct validity was used to test instrument validity while Cronbach’s alpha was used to test instrument reliability during pilot test. Data collected from the field was coded, cleaned, tabulated, and analyzed using both descriptive and inferential statistics with the aid of specialized Statistical Package for Social Sciences (SPSS) version 24 software. The outputs of analyses were presented using tables and graphs. Descriptive statistics such as frequencies and percentages as well as measures of central tendency (means) and dispersion (standard deviation) will be used. Further, inferential statistics such as regression and correlation analyses ere used to determine variable relationships. From 98 questionnaires that were dispatched for data collection, 87 questionnaires were returned completely filled, representing a response rate of 88.7% which is good for generalizability of the research findings to a wider population. Both descriptive and inferential statistics using customer retention tactics such as niche segmentation/switching costs, customer value/reward system, service quality/niche services, and customer satisfaction surveys really determine competitiveness of audit firms in Kenya. The study concluded customer retention initiatives such as such as niche segmentation, customer reward system and customer satisfaction surveys significantly influence competitiveness of audit firms in Kenya. The study recommends that in order for audit firms to remain competitive, the customer relationship managers must roll out feasible customer retention programs, customer reward systems and niche services to attract and retain customers.
