Effect of Customer Loyalty on Organizational Performance of Lodges Within Lewa Wildlife Conservancy

Abstract

The purpose of the study was to evaluate the effect of customer loyalty on organizational performance of lodges within Lewa Wildlife Conservancy. A descriptive survey design was employed to depict the true representation of customers' satisfaction levels and their effect on the organizational performance of lodges within the wildlife conservancy. The target population for this study comprised all the staff at the lodges (Lewa Wilderness, Lewa House, and Elewana Lewa Safari Camp) in the Conservancy. Since the size of the population (121) was small, the study conducted a census. Data analysis involved descriptive and inferential statistics. Most of the respondents agreed that the profitability and sales turnover of the lodges had gradually increased as illustrated by the average scores of 4.60 and 4.57 respectively. Additionally, as shown by mean scores of 4.48 and 4.31 respectively, most of the respondents agreed that the lodges had not experienced employee turnover for a long time and that the lodges had seen an increase in market share. The lodges also had increased cost savings as a result of customer retention as evidenced by an average score of 4.26. The results indicate that an overwhelming majority of the respondents were in strong acceptance that the lodges’ customers kept coming back for more services which boosted their performance and that the length of stay in the lodges was an indicator of customer loyalty and satisfaction as shown by average scores of 4.76 and 4.52 respectively. Further, there was a strong positive correlation between organizational performance and customer loyalty, as evidenced by a correlation coefficient of 0.712. Notably, the regression coefficient results revealed that for every unit increase in customer loyalty, there is a corresponding increase of 0.745 in organizational performance. The study concluded that loyal customers made repeated purchases, leading to a steady revenue stream for the organizations. The study recommends that the lodges should emphasize the delivery of high-quality services throughout the customer journey, from reservation to check-out. They should also train and empower staff members to provide exceptional customer service, ensuring that guests' needs and preferences are met promptly and efficiently.