Analyzing customer retention strategies at opportunity international savings and loans limited

Abstract

In recent years, customer retention has gained attention among savings and loans service providers. With the increasing competitive environment, firms are continually looking for innovative ways not only to attract customers but to retain existing ones. The main objective of the study is to analyze customer retention strategies at Opportunity International Savings and Loans Limited (OISL). The study revealed that, customer retention strategies used at OISL were consistent with literature reviewed on the subject. The study also showed that not all customers who switched to competitors informed management before leaving. Pricing, attraction by competitors, involuntary switching were the main factors mentioned as causes of switching at OISL. Respondents also complained of bureaucratic and cumbersome procedures in credit delivery system. Reduction in savings/deposits and hence, profit and dissemination of wrong information to the public by defectors came out as the effects of customer switch on the operations of OISL. It can be concluded that, customers remain the primary focus of every business because without them there will be no reason for operation. The fact still remains that, it is more economical to keep customers than to attract new ones. Therefore, it was recommended that, OISL should improve upon its retention strategies to track defections by customers, understand their preferences and thereby making them more delighted instead of satisfied and improve credit delivery system.