EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER RETENTION

ABSTRACT This study examined the effect of Corporate Social Responsibility (CSR) on customer retention and brand preference in Guaranty Trust Bank (GTBank), Bauchi Metropolis. CSR, encompassing initiatives such as education, youth empowerment, environmental sustainability, and community development, has become a strategic tool for businesses to build trust, loyalty, and reputation. The study adopted a descriptive survey design, using structured questionnaires to collect data from respondents. Both descriptive and inferential statistics were employed to analyze the relationship between CSR, customer retention, and brand preference. The findings revealed that CSR positively influences customer loyalty, trust, and brand perception, with many respondents affirming that GTBank’s CSR initiatives make them proud to associate with the bank. CSR was also shown to enhance competitive advantage by strengthening emotional connections with customers. However, the analysis indicated that CSR alone does not guarantee long-term customer retention, as operational efficiency, service quality, and digital innovation remain important factors. Statistical tests confirmed that CSR has a significant effect on brand preference, shaping customer purchasing decisions and fostering brand loyalty, but only a moderate effect on direct retention. The study concludes that CSR is a vital strategic tool for GTBank, enhancing reputation and building emotional loyalty, though it must be complemented by service excellence and technological innovation to maximize long-term customer relationships. Recommendations include integrating CSR with service delivery, expanding education and youth empowerment programs, strengthening communication of CSR activities, diversifying CSR focus areas, and establishing effective monitoring and feedback mechanisms. The study contributes to knowledge by providing empirical evidence on the dual role of CSR in improving brand preference and moderately influencing retention in the Nigerian banking sector, while suggesting areas for further research such as comparative studies across banks and longitudinal assessments of CSR impacts.