Conference Paper

An Assessment of Service Segmentation on Customer Retention. (A Study of Zenith Bank Plc, Sango Ota, Ogun State)

The study examined the effect of service segmentation on customer retention with a cursory look at Zenith Bank Plc, Sango Ota in Ogun State, Nigeria. The study assessed the effect of income, occupation and educational background on customer retention. The researchers adopted descriptive research design to ascertain behavioral patterns. The population of the study was the entire customers of the bank in the location under review. A sample size of 385 respondents was determined using Cochran formula. Data were collected through structured questionnaire, grouped and presented in frequency tables while hypotheses were tested using multiple regression analysis with the aid of (SPSS version 23). The findings revealed that there is no significant effect for all the constructs on customer retention with 0.487, 0.164 and 0.637 respectively which is greater than 0.05 significant level and also as indicated by a correlation coefficient (r) of 0.81 and a coefficient of determination (R²) of 0.007% which showed a weak positive relationship between all the independent variable constructs and the dependent variable. The regression model does not provide strong evidence that these demographic factors meaningfully influence customer retention in Zenith Bank Plc. It is concluded that service segmentation with reference to income, occupation, and education is not a critical driver of customer retention in Zenith Bank. The study therefore recommended that Zenith Bank should design tiered service packages, more financial services with occupational needs and banking communication for less-educated customers. Keywords: Income, Occupation, Education, Customer Retention.