The Relationship Between Branding Strategies and Customer Loyalty Among Commercial Banks in Kenya

Abstract

The purpose of this study was to establish the effect of branding strategies on customer loyalty among commercial banks in Kenya. The study had three specific objectives: To establish branding strategies adopted by commercial banks in Kenya; To find out the customer loyalty levels in commercial banks in Kenya and to determine the relationship between branding strategies and customer loyalty levels in commercial banks in Kenya. The study took the form of a survey where a census of all the commercial banks in Kenya was conducted. Primary data was collected from 35 commercial banks out of the total 43. The study established that most commercial banks in Kenya have demonstrated this significance by establishing departments that deal with all the branding issues that they face. The most common branding strategies among commercial banks in Kenya are the use of the bank name alongside other brands for their products; use of multi-brands strategy; use of brand extension strategy; use of the organizational brand as well as use of several brands. Banks also indicated that their customer loyalty levels are high through various indicators such as operating accounts for long, opting to remain with the bank even if occasionally offended, low customer turnovers and referral of other potential customers by existing customers.