Business and Economics Journal

Determining the Equality of Customer Loyalty between Two Commercial Banks in Anambra State-Nigeria

Abstract

Aronu CO

This study examined the equality of customer loyalty between two Banks in Anambra State- Nigeria. The objective of this study is to determine if there exists significant difference between loyalty of customers in two commercial banks in Anambra State. The data used for this study is primary data collected through the aid of administered questionnaire. The statistical tool used in analyzing the data was the permutation method for Hotelling T-Squared. The result of the analysis showed that there is no significant difference between customer loyalty of the two commercial banks. This result could be attributed to the improved supervision of the apex bank in Nigeria (Central Bank of Nigeria) on the activities and operation of the banking sector. Since, customer loyalty can help firms develop strategies to grow the right customers and in turn customers can be viewed in terms of their lifetime value. We recommend studies on determining the retention and lifetime value of commercial banking customers in Nigeria as a fruitful area for future research, for it appears that the banking industry is one of the most profitable within the Nigerian economy, hence, higher performance could be attained in terms of customer retention and loyalty there by creating wealth to her shareholders and rendition of social obligations to the larger society. Also, managers in the banking industry should note that failure to recognize the power of customer satisfaction, especially customer emotions, could destroy the power of customer retention and loyalty