A study of the factors affecting customer loyalty in namibian banking sector
The purpose of this study is to closely examine the factors that influence customers loyalty in the Namibian Banking sector, with specific reference to First National bank of Namibia. Although currently has the high market share in the industry, it is not certain the competitive banks are not fighting hard as in maintaining their share and possible attracting the FNB customers. And if customers can easily switch between banks this display low customer loyalty, in fact necessitating deep analysis as of the factors that lead to low loyalty of customers towards their banks.
The study attempt to examine challenges banks face in building long relationships with their customers. And the drawbacks that low customer loyalty has upon the businesses operations in this regard. Customers loyalty in the banking industry has been a major concern to practitioners due to severe competition and higher customer expectations customer loyalty is considered a vital link and aspiration to organisation success, profitability and business performance.
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Bank management need to be knowledgeable of the drivers of customers loyalty in retail banking industry and its impact on the firm.
A banking customer has for instance both a cheque and saving account and every month the customer provides a certain to the bank, and the and present value of this continuing profit stream represents the customers actual value to the bank. But the home mortgage the same customer has at a competitive bank represents strategic value that the first bank could realise if it had a proactive strategy to obtain it. Moreover, loyalty rather than customer satisfaction is becoming the number one strategic goal in today’s competitive business environment. Hence, the study is a fact finding research and qualitative in nature.