DETERMINANTS OF CUSTOMER RETENTION IN BANKING INDUSTRY (IN ABBIYSSIA BANK DESSIE DISTRICT)

ABSTRACT <em>The main purpose of the study was to examine determinants of customer retention in Abyssinia bank in dessie district .</em><em>An explanatory and descriptive research design was used to carry out this investigation. There was use of both qualitative and quantitative research methods. A questionnaire and interviews were conducted in order to gather data. The method used was simply random sampling. Bank branches were specifically chosen to be among the participants. 246 sample respondents in all were chosen for the study, and 246 of them completed and returned the questionnaire, meaning that 100% of the respondents did so .Descriptive statistics like frequency count, percentage, mean standard deviation, and inferential statistics like correlation, regression coefficients, and ANOVA were used to examine the acquired data. The statistical package for social science (SPSS) version 26 was used to examine the data. </em><em>The study finding shows that,</em><em> predictor variables, all factors have positive relationship among/between/the variables and all have a significant effect on customer retention. </em><em>trust factors and customer retention was r=0.402**, p=.000). The correlation between responsiveness factors and customer retention was (r=.491**p=.000). Relationship management factors and customer retention has a strong positive relationship and is significant at 0.01 levels, (r= .706**, p=.000). </em> <em>On the other hand, the correlation between the quality service factors and customer retention was strongly positive (r=.587**, p=.000). </em><em>The study recommends that,</em><em> influencing a customer's attitude toward banks is the satisfaction level with which financial services are provided in light of their diverse needs. BOA bank must acknowledge the importance of customer satisfaction in retaining customers. The results demonstrated that client loyalty is strongly impacted by satisfaction, so the bank should continue to work on this issue, Continually train staff members on product knowledge and customer service techniques, pay attention to problem-solving, empathy, and communication skills, mobile Banking Apps provide applications that are easy to use and facilitate quick access to services, make use of AI to provide prompt answers to questions and problems from customers.</em>