Customer Service Strategies and Bank Performance in Kenya. A Survey of Selected Commercial Banks in Eldoret Town, Uasin Gishu County Kenya

Abstract

In the advent of a competitive and globalized business environment, financial institutions have been triggered to come up with unique strategies that enable them to achieve competitive advantage. Several studies have been carried out on customer service and its impact on bank performance, but few have exploited on the customer service strategies which were used in this study. Hence this study examined customer service strategies' effect on bank performance. The specific objectives of the study were: To determine the effect of human resource management strategies, technological strategies, and service delivery environment on performance of commercial banks. This study was guided by Resource-based view theory. A survey was conducted on all 26 commercial banks operating in Eldoret town. The study employed a descriptive survey research design, while the target population was 146 employees of commercial banks. Systematic sampling was used to select the required sample size of 73. The study results indicated that there was a significant relationship between technological strategies (β= 0.586, p = 0.000); service delivery environmental strategies (β=0.206, p=0.016), and performance of commercial banks. However, there was no significant relationship between human resource management strategies and performance of commercial banks (β=0.226, p=0.153). The study concluded customer service strategies except human resource management strategies contribute significantly to positive change in bank performance. The study therefore, recommends that the management should implement proper human resource management strategies, adopt improved technological strategies and last but not least, to enhance proper service delivery environmental strategies in order to achieve their goal. The study also recommended other studies to be carried out on the same in order to improve the quality of the findings.