THE IMPACT OF CUSTOMER RETENTION STRATEGIES ON PROFITABILITY OF SMALL AND MEDIUM ENTERPRISES IN KATSINA STATE
Lawal Muhammad, PhD, Abdullahi Ibrahim Isah, PhD and Usman Ibrahim Kamuku
Volume 12 Issue 1
Abstract
The study examined the impact of customer retention strategies on profitability of small and medium enterprises in Katsina State. This study used a quantitative research design. Five hundred questionnaires were administered to the owners/managers of Small and Medium Enterprises in Katsina State. Out of which 406 were filled and returned by the respondents but twelve questionnaires were found unusable. This implies that the study attained 78.8% response rate. Eleven missing figures were found in the data of the study and mean substitution method was employed to replace the missing data. The data of the study was analysed using Smart PLS, where assessment and structural models were utilised. Based on the results of the assessment model of the study, items indicators, constructs reliability as well as discriminant validity are established in the study. The result of the also revealed that about 79% of changes in the profitability of SMEs in Katsina State are explained by customer relationship management, customer satisfaction and brand loyalty. In addition, the results of the structural model of the study revealed that customer relationship management, customer satisfaction and brand loyalty significantly affect the profitability of SMEs in Katsina State. The study recommends among other things that SMEs should put more efforts on establishing good customer relationship management in order to increase their profitability. Keywords: Customer Relationship Management, Customer Satisfaction, Brand Loyalty, Profitability
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