©ARC Page | 42 Impact of Customer Satisfaction on Customer Retention: A Case Study of a Reputable Bank in Oyo, Oyo State. Nigeria

Abstract: This paper examined the impact of customer satisfaction on customer retention. The objectives were: to determine the relationship between customer satisfaction and customer retention, and to examine the impact of customer satisfaction on customer retention. Survey research design was adopted for this study. Primary and secondary sources of data were used. The primary data includes a structured questionnaire used to elicit information from the target respondents who were customers of the reputable bank in oyo while the secondary data encompass the use of related materials, journals and periodicals. Anova and t-statistics were used to test the hypothesis while regression analysis was used to analyzed the data. The findings show the R2 value of 0.717 which reveals that customer satisfaction independently accounts for 71.7 % of the variation in customer retention. The f-statistics of 41.173 reveals that the model is statistically significant at 0.05 significant level. It was concluded that the effective satisfaction of customers will give room for customer retention. More so, there is a significant relationship between customer satisfaction and customer retention