| dc.description.abstract | This study aimed
to
determine the influence of customer retention strategies on
performance of insurance companies in Nairobi, Kenya.
The study was a cross-
sectional
descriptive survey design which used quantitative methods. The target population for this
study consisted of 48 registered insurance companies with headquarters in Nairobi.
Following the small size of the population of the study, a
census was carried out. The
study aimed to collect both primary and secondary data; primary data was collected using a semi-
structured questionnaire while secondary data was obtained from annual reports.
Descriptive statistics of mean, frequency and percentages were used to analyze
demographic characteristics of the respondents. Regression analysis was used to measure
and predict the relationship between the customer retention strategies and performance.
The analyzed findings were then presented inform
of frequency tables.
The study found that a unit increase in monitoring customer relationships will increase
market share by 0.223,
loyalty programs will increase
market share by-
0.148, customer
clubs will increase market share by 0.044, effective recovery
systems will increase
market share by 0.251, sales promotions will increase market share by 0.145, creating
customer bonds will increase market share by 0.317, building commitment will increase
market share by 0.29, market intelligence will increase market
share by 0.247, and lastly
extraordinary customer service will increase market share by 0.331. When testing the
relationship between retention strategies and gross profit, the study revealed that; a unit
increase in monitoring customer retention strategies will result to increase in gross profit
by 0.268, loyalty programs by
an increase of
0.101, customer
clubs will result to an
increase
in profits by-
0.268, effective recovery systems with an increase in 0.052, sales
promotions by
an increase of
0.58, cr
eating customer bonds by
an increase of
0.01,
building commitment by
an increase of
0.15, market intelligence by
an increase of
0.433
and lastly extraordinary customer service will
result to an increase by-
0.327. When
testing the relationship between retention strategies and sales volumes, the study revealed
that; a unit increase in monitoring customer relationships will result to increase in sales
volumes by 0.12, loyalty programs by an increase
of-
0.116, customer
clubs will result to
an increase
of-
0.4
53, effective recovery systems with an increase in 0.307, sales
promotions by
an increase of
0
.16, creating customer bonds by increase of
0.409,
building commitment by
increase of
0.267, market intelligence by
increase of
0.25 and
lastly extraordinary customer service by
an increase of
0.203.
Based on research findings and conclusions, the researcher recommended that companies
should strengthen their customer bonds to
increase customer retention, increase market
share as well as grow
their sales volumes.
Organizations should
also
provide
extraordinary customer
service,
allocate budgets
to building customer clubs and expand
their strategies to
incorporate customer clubs in order to gain more understanding of their
customers.
The researcher also recommends
that companies should strengthen their
market intelligence so as to identify new trends in markets as well as competition. This
enables counter measures thus minimizing investment risks by detecting threats and
trends early. | en_US |
