Effect of Customer Retention Strategy on Performance of Micro and Small Enterprise of Three Wollega Zones: In Case of Selected Town (Nekemte, Gimbi and Shambu)

These days, a highly competitive corporate climate may increase the need to improve customer retention and fortify customer connections. The aim of this study is investigating how customer retention strategies affect small and microenterprise performance in three Wollega Zones. An explanatory and descriptive research design was employed. Additionally, a combination of qualitative and quantitative methodologies was used. The study's target population included all SMEs' owners and managers as well as their employees. To choose the study's sample size, the researchers employ both stratified and purposive selection strategies. Data was gathered from 346 participants. Both primary and secondary data were gathered for this investigation. The data was analyzed using the mean, frequency, percentages, and standard deviation. The association between SMEs' performance and customers’ retention strategy was measured and predicted using regression analysis. The study's conclusions demonstrated a relationship between SMEs' performance and their customer retention strategy status, with higher performance being related with better customer retention strategy status. Additionally, it was discovered that the businesses were not employing the right sales marketing tools for the right audiences to raise awareness of their goods and services. Additionally, it comes to the conclusion that the performance of small and micro enterprises was significantly correlated with customer retention strategies.