Relationship Marketing and Customer Loyalty in Selected Tier One Deposit Taking Saccos in Kenya

Abstract

The objective of the study was to establish the influence of relationship marketing on customer loyalty in selected tier one deposit taking SACCOs in Kenya. The study adopted a descriptive cross sectional survey with a sample of 128 tier one DT-SACCO members. The population of the study comprised of six tier one DT-SACCO members who are also shareholders of their SACCOs and make monthly contributions. Descriptive statistics and multiple regression analysis were used to assess the influence of relationship marketing constructs on customer loyalty. The findings were that only two constructs; communication and commitment had a statistically significant influence on loyalty. The results from the findings imply that customer loyalty can be initiated and sustained through efficient, effective and responsive communication. The results also imply that calculative, normative and affective commitments are all influencers of customer loyalty. Organizational marketing plans should be designed to incorporate effective communication to customers and encourage commitment from customers towards their services, products and brands. In conclusion, there exists a strong positive correlation between relationship marketing and customer loyalty in deposit taking SACCO‟s in Kenya.