Investigating the implications of bank product development on customer acquisition and retention: a case of xapit mobile banking service at Zanaco.
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Product development is the presentation of a good or service that is new or altogether improved with respect to its qualities or planned uses; remembering critical upgrades for specialized determinations, parts and materials, fused programming, ease of use or other utilitarian attributes. This research was aimed at investigating how the Xapit mobile banking service has affected the bank‟s customer acquisition and retention. The research embraced a quantitative research structure. Primary and secondary data was explicitly gathered and analyzed so as to accomplish the research objectives. A sample of 162 was randomly selected. The data was gathered through questionnaires. The data which was collected was analyzed by the SPSS. From the 162 questionnaires distributed, only 117 were successfully filled up and returned to the researcher. This gave a response rate of 72.23% which is significant considering 50% is viewed as satisfactory. The findings of the study through correlation analysis conducted on the study variables found that both the study variables (customer acquisition and Customer retention) had a negligibly positive relationship (r=0.033; P< 0.0226; r=0.006; P< 0.045) with Xapit product. Therefore, Xapit mobile banking service has positively affected the bank‟s customer acquisition and retention. The results resonated with the findings by Rathi and Sruthi, (2016), Ogongo (2014) and Caldeira & Ward (2001) that a well-developed product positively influences customer acquisition and retention. The study further more discovered that customers find Xapit safe to use which as a result has attracted more customers as indicated by an average ranking of 4.45 with a standard deviation of 0.856. Additional unique factor that made respondents get attracted to Xapit services was a result of friends and colleagues‟ recommendation as indicated by a mean of 4.33 and standard deviation of 0.743. The study also found that customers are retained on Xapit as a result of among others; lower cost of doing any transaction, secure and easier to use. In conclusion, the study recommends the followings; the marketing team of the bank should do a wider and more detailed market research to determine what else needs to be done to improve Xapit banking services so that it gains more market share. The bank should make Xapit more affordable and user friendly. The bank needs to identify gaps and loopholes in the existing Xapit services in order to improve the services which will ultimately enable it acquire and retain more customer. Key Words : Xapit, Customer Acquisition, Product development and Customer retention
The University of Zambia