Abstract:
The main cause of this study was to establish factors that determined customer loyalty rates at Gulf African Bank. To achieve this, the study sought to analyze the effect of service quality levels on customer loyalty, to investigate the effect of service or product delivery channels on customer loyalty and finally examined the effect of service cost on customer loyalty rates at Gulf African Bank. The study adopted a descriptive research design using a quantitative methodology using Gulf African Bank as the case of the study. The population of the study was drawn from Gulf African Bank customers with accounts that had been both active in May and June 2017. A Stratified random sampling and Questionnaires was used in ease of data collection and for purposes of explaining contents of the questionnaire to customers. Data was shown using tables and figure. Key findings of this study revealed that most of Gulf African Bank customers perceived customer service quality levels to be good. Consequently, this enhanced the bank’s customer loyalty rates. This study concluded that there exists a positive relationship between the levels of customer service as well as customer loyalty rates. The higher the customer service quality levels the higher the loyalty rate for Gulf African Bank customers. The study concluded that use of technology in delivery of banking products and services enhances customer loyalty rates. While technology use in service delivery is key, the use of branches remains vital for customer service delivery. This study recommended that Gulf African Bank should continually improve its customer service levels. In addition, the study recommended that Gulf African Bank continually invests in modern, new and innovative platforms to deliver banking products and services; multichannel delivery of services and products to enhance customer loyalty rates .
