The Role of Innovation in Enhancing Customers Satisfaction and Retention: Evidence from Commercial Banks in Mfoundi Division, Cameroon

Abstract

In today’s competitive banking landscape, innovation plays a crucial role in enhancing customers’ satisfaction and retention. In this light, this study was out to examine the effect of innovation on customer satisfaction and retention in commercial banks in the Mfoundi Division of the Centre Region of Cameroon. To this effect, a survey design was adopted for the investigation that gave room for the collection of primary data from 384 customers of commercial banks in Mfoundi Division. These customers were selected randomly and the data obtained was analyzed using a series of multiple regressions. The results of this study showed that process, market and organizational innovations all had significant effects on customer satisfaction while product innovation had an insignificant effect. Also, the results illustrated the fact that innovation in terms of product, process, market and organizational innovations all had significant effects on customer retention. Finally, this study’s results demonstrated the fact that that process, market and organizational innovations all had significant effects on customer satisfaction and retention as a collapsed variable while product innovation had an insignificant effect. The study concludes that innovation is a key driver of customers satisfaction and retention in commercial banks in Mfoundi Division, Cameroon.