Asian Journal of Economics, Finance and Management

This study examined the impact of service quality on customers’ retention in Nigeria. The study proxied the independent variable with three variables namely; reliability, responsiveness and tangibility while the dependent variable was customer retention. The study employed primary data sourced questionnaire administered online. The study’s population comprised all banks customers who could be reached online. These deposit money banks included those bank that have fewer branch network but with huge online presence like Opay, Palmpay, Moniepoint. The study employed purposive sampling technique because the study wanted to focused on those who made of the aforementioned banks. Descriptive statistics was employed in explaining the socio demographic of the respondents. Data were presented with tables, using percentage and analyzed with chi-square. Findings from the study indicated that service efficiency has significant effect on the customers’ retention by deposit money banks in Nigeria. Also, banks’ tangibility has significant effect on the customers’ retention by deposit money banks in Nigeria and lastly, service responsiveness helps to improve the customers’ retention by deposit money banks in Nigeria significantly. Thus, the study concluded that service quality has significant impact on customer retention by deposit money banks in Nigeria. This implied that Nigerian banks stand a better chance of retaining the loyalty of their customers with better and improved service quality which would improve their overall performance. Therefore, the study recommended that Bank managements are advised to be more efficient and proactive in handling their customer’s challenges and complaints. Customers’ challenges and complaints should be resolved faster and with appropriate compensations.