Strategic Flexibility and Customer Retention: An investigation of Deposit Money Banks in Nigeria (Published)
This research was conducted to investigate the influence of strategic flexibility on customer retention in deposit money banks in Nigeria. The study aimed at ascertaining the extent to which strategic flexibility can serve as a good predictor of customer retention in deposit money banks in Nigeria, given heightened competition and environmental turbulence in recent times. The survey research design was adopted for the study. The study had an infinite population. A sample size of 440 respondents sourced from ten deposit money banks in the Tier-1, Tier-2 and Tier-3 categories of banks in Nigeria was administered with copies of the questionnaire. Out of this number, 294 copies of the research instrument were returned. This amounted to 66.82% response rate. Data analysis was done with simple regression technique. Findings of the study indicated that with an R2 value of 0.370, there was a significant positive influence of strategic flexibility on customer retention in deposit money banks in Nigeria. Based on this result, it was concluded that strategic flexibility can determine customer retention in deposit money banks in Nigeria. In line with this result, it was recommended that deposit money banks in Nigeria should employ its capability in the area of strategic flexibility in its drive towards retaining customers in an increasingly competitive and turbulent banking space.
Keywords: Customer retention, Deposit Money Banks, Nigeria, organizational agility, strategic flexibility