Effect of Electronic Banking on Customer Retention in Commercial Banks in Nakuru Town

Banks can attract customers on a daily basis. However, they have not been able to retain most of their customers as noted by the high numbers of reduced customers. This study sought to assess the effect of electronic banking on customer retention in commercial banks in Nakuru. The target population for the study was 66 customer relationship officers and managers from commercial banks in Nakuru Town. A census strategy was adapted for the study where survey research design was used. Data for the study was collected by administering questionnaires to the selected relationship managers and officers. The data was then analyzed using descriptive statistics such as frequency counts, percentages, means and standard deviation. Further, Pearson correlation analysis was done between customer relation strategies and customer retention. The study revealed a statistically significant correlation between the level of use of electronic banking and customer retention in commercial banks in Nakuru Town. The study, therefore, recommended that owing to the impact of electronic banking on the performance of commercial banks, it was important that banks enhance their investment in more innovative customer service technologies. It is hoped that the study will give meaningful insight on different customer relationship strategies to enhance their retention