IMPACT OF CUSTOMER RETENTION ON ORGANIZATIONAL PERFORMANCE (A STUDY OF UNION BANK PLC., ABA) BY

ABSTRACT This study focused on Impact of customer retention on organizational performance; using Union Bank Plc, Aba as area study. The objectives of the study are to determine the relationship between customer retention and organizational profitability, to ascertain the relationship between customer retention and organizational sales value, and to determine the relationship between customer retention and organizational cost of customer acquisition. Therefore, three research questions and three hypotheses were drafted out to direct the study and the researcher adopted descriptive research design, having a population size of 100 and using Yaro Yamen formular to arrive at sample size of 80. 80 copies of Questionnaires were distributed all were successfully retrieved and simple percentage table were used to analyzed the responses gotten, and Chi-square statistical tools was used to test the hypothesis. Based on the data collected, analyzed and hypothesis tested, the following findings were made. From the findings the researcher were able to notified the stated effect above, There is a significant relationship between customer retention and organizational sales value, there is a significant relationship between customer retention and organizational sales value, and there is a significant relationship between customer retention and organizational cost of customer acquisition. So, from the findings and conclusion, recommendations were made that, the management of commercial banks should charge competitive interest rates, favorable account charges and administrative fees that will guarantee customer retention. Favorable fees and charges will reduce chances of credit facilities being defaulted and further, the customers will not move to other competitors.