Analysis of customer loyalty among local commercial banks in Uganda: A case of Finance Trust Bank
The study was carried out to analyze customer loyalty among local commercial banks in Uganda, a case of finance trust bank. The objectives of the study were; to find out the customer loyalty strategies currently implemented by Finance Trust Bank, to find out the causes of low customer loyalty in FTB and to explore into the strategies that could be adopted to achieve higher levels of customer loyalty in FTB. A descriptive cross-sectional research design was used and a mixed research approach was employed to achieve the objectives of the study. The population of the study was 2,800 customers from which a corresponding sample size of 338 respondents was determined using the Morgan and Kragiece (1970) sample determination table. A probability sampling technique called simple random sampling was used to select the required sample size of the study from the population. A survey was conducted on the selected sample to collect the primary data which was analyzed using a computer application called Statistical Package for Social Scientists (SPSS). From the results of the study, amidst the prevailing customer loyalty strategies, the following strategies were found missing in FTB including; improved mobile banking, internet banking, financial literacy and sensitization of clients and mass awareness of clients about the banks products and services. The findings further reviled that the causes of low customer loyalty include; limited ATMs, high interest rates, poor turnaround times, high prices of products and services, inconveniences in transacting, response failure, unethical treatment, untrustworthiness of the bank staff, better offers from other banks, lack of monetary rewards from the existing bank, high ledger fees, poor customer communication, limited bank branches upcountry and lack of CSR activities carried out by the bank. Basing on the results of the study, it is recommended that FTB should make extra investments and efforts in implementing the prevailing customer strategies and put emphasis on the following customer loyalty strategies, which include; improved mobile banking, internet banking and mass awareness of clients about the banks products and services. This is because these strategies are some of the biggest determinants of customer loyalty that FTBs competitors use to switch away its customers.