Abstract:
The sole purpose of a business Drucker (1973) once famously claimed was “to create a customer”. However,
keeping the customer has become or regarded as equally, if not more important. Reichheld (1996) emphasised
that a 5 per cent increase in customer retention generated an increase in customer net present value of between
25 per cent and 95 per cent across a wide range of business environments. Customer attraction and retention is
becoming an important element of any banking strategy in today’s increasingly competitive environment
(Verhoef, 2003). The study investigated the determinants of customer retention in Ghana Commercial Bank
within Agona Swedru Municipality. The main variables of concern were service quality, customer satisfaction,
customer trust, commitment and switching barrier. The correlational design was used for the research. Simple
random sampling and self administered questionnaire were utilised to obtain data from 480 customers of the
bank. Mean and Step-wise regression techniques were used to examine the level of retention and contribution of
these factors to customer retention. It was concluded that; switching barrier, customer commitment and customer
trust were the three variables in the conceptual framework of the study that emerged as the most significant
factors contributing to customer retention. The study has documented that switching barrier is the most
significant factor in retaining customers. The above conclusions indicate a need for certain strategies to be
applied by organisations so that customer retention would continue to be high. It suggested that management of
Ghana Commercial Bank, and other banks should pay more attention to customer retention by increasing
customer satisfaction through the provision of accurate and timely information on products and services to its
customers. There is also the need to pay more attention to service quality through the continuous provision of
fast, reliable and error-free transaction to customers
