Relationship Management Strategies and Customer Retention in Microfinance Banks: A Nigerian Perspective

This study explores the relationship between relationship management strategies and customer retention practices in Nigerian microfinance banks. The study utilized two research objectives, two research questions, and two hypotheses. The study employing a descriptive correlational research design. The population comprised 400 customers from microfinance banks in Calabar Metropolis, Cross River State, Nigeria, selected based on their engagement with the banks for at least one year. Stratified random sampling was employed to ensure a representative sample from various customer subgroups. Data were gathered using a structured 24-item questionnaire titled "Relationship Management Strategies and Customer Retention in Microfinance Banks (RMSCRQ)," focusing on relationship management strategies, customer engagement, and retention, with responses measured on a 4-point Likert scale. The instrument was validated through expert review, and its reliability was confirmed with a Cronbach’s alpha coefficient of 0.85. The study utilized both descriptive and inferential statistical techniques, including frequency distribution, mean, standard deviation, Pearson's correlation, and regression analysis, to test the hypotheses and analyze the data. Findings indicated significant relationships between relationship management strategies and customer retention, with customer engagement practices positively predicting retention. The study concludes that effective relationship management strategies are critical for customer retention in Nigerian microfinance banks. Received: 22 April 2025 / Accepted: 4 July 2025 / Published: 15 July 2025