INFLUENCE OF SELECTED INNOVATIVE STRATEGIES ON CUSTOMER RETENTION IN COMMERCIAL BANKS IN NAKURU TOWN, KENYA

High competition in the banking industry has resulted to management of these banks to re-engineer strategies for customer retention. Clearly, there are compelling arguments for banks to carefully consider the factors that might increase customer retention rates. However financial factors tend to have similar influence on customer retention in banks as customer still shift from banks despite the financial dimensions of customer retention strategies. The purpose of the study therefore was to establish the influence of selected innovative strategies on customer retention in banks. The study targeted all 160 employees of the 18 commercial banks in Nakuru Town. The study employed a descriptive research design using both qualitative and quantitative approaches. The study used close-ended questionnaires to collect data using simple random sampling from the specific banks. The collected data was coded and analyzed by the aid of Statistical Package for Social Scientists and the results presented in tables. For purposes of establishing the strength and direction of the variables in the study, a correlation analysis was carried out. The study established that all three innovative strategies; mobile banking, agency banking and internet banking had some influence on customer retention in banks. Agency banking (r = 0.615) had the most influence on customer retention while internet banking (r = 0.264) had the least influence on customer retention. The study recommended that banks should enhance those innovative strategies in order to retain their customer. Further, attempts should be made in establishing the influence of other innovative strategies in order to establish the most effective strategies in enhancing customer retention.