Analyzing Customer Loyalty Programs' Impact on Bank Customer Retention in Cameroon
DOI:
https://doi.org/10.47941/ijf.3573Keywords:
Customer, Bank Retention, Cameroon, Loyalty Program Features, Customer Engagement, Structural Equation Modeling (SEM)Abstract
Purpose: This study aims to investigate the impact of customer loyalty programs on bank customer retention in Cameroon, examining the relationships among loyalty program features, customer satisfaction, customer engagement, and customer retention rate.
Methodology: A quantitative methodology was employed, gathering data from 100 Cameroonian bank clients through surveys. Structural Equation Modeling (SEM) was used to analyze the connections among the components, with the Commitment-Trust Theory serving as the conceptual framework.
Findings: The results reveal that loyalty program features, customer satisfaction, and customer involvement significantly predict customer retention rate. Specifically, loyalty program features such as incentives and prizes positively influence client retention. However, a negative correlation between customer satisfaction and customer retention rate was unexpectedly found, suggesting that customer satisfaction is not always a reliable indicator of client retention in the Cameroonian banking context.
Unique Contribution to Theory, Practice and Policy: This study contributes to the existing body of knowledge on loyalty programs and client retention by providing empirical evidence from an under-researched context. For practice, the findings offer insights for banks seeking to develop effective loyalty programs that improve customer retention. For policy, the results inform regulatory bodies about the importance of encouraging customer-centric innovations in the banking sector to enhance financial inclusion and stability.
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Copyright (c) 2026 Huboh Samuel Ringmu, Virginie Takoutio Feudjio, Njong Mom Aloysius, Nkiendem Felix
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