Customer service strategy and customer retention in retail stores in Mukono district: a case study of general merchandise stores in Mukono central division

Abstract

The intention to this study was to determine the relationship between customer service strategy and customer retention among retail stores in Mukono Central Division a case study of General Merchandise stores in Mukono Central Division. The specific objectives of the study were to investigate the relationship between effective communication and customer retention, determine the influence of time management on customer retention and examine the relationship between seller‟s reliability and customer retention among General Merchandise retail stores in Mukono Central The study adopted a case study design and both qualitative and quantitative approaches were used. Data were collected using both questionnaire and interview guide from a sample of 136 and a total of 112 respondent‟s business owners, attendants and customers of General Merchandise stores at a response rate of 82.4%. The study findings revealed a significant positive relationship between effective communication and customer retention observed at r= 0.265**. The results also indicated coefficient of determination at r2 0.705**. The findings revealed significant positive relationship between seller‟s reliability and customer retention revealed at R=0.930**. However, from the conclusion, the study results indicate that of the three sub variables studied, time management and sellers‟ reliability has a great influence on customer retention among the general merchandise retail stores. This study recommends that general merchandise retail stores owners needs to ensure customers retention they need to put efforts on is about making happy, care about them, making them feel valued and making them feel appreciated. The study also recommends that general merchandise retail stores may adopt networking and referrals. Landing referrals from networking or past business associations is not just a cheap way to pick up new business. The study further recommends that general merchandise retail stores to identify their customers and their potentiality develop detailed picture of them and understand how to target them. For further studies, this study recommends a study on other customer retention strategies and also a study on other customer service strategies that can boost customer retention