The Practice of Jordanian Banking to Improve Customer Retention

Enterprises have become increasingly reliant on digital information to meet business objectives. Significant amounts of information fuel business processes that involve parties both inside and outside of enterprise network boundaries. In response, many banks have recognized the importance of managing customer retention from the perspective of a process approach to positively impact customer retention. This paper adopts a holistic approach that examines the combined effects of customer processes on customer retention. Drawing on this framework, the paper develops several hypotheses regarding the main and interaction effects of customer processes on customer retention. The paper tests these hypotheses based on a sample of data collected from two hundred respondents, drawn randomly from four Jordanian banks working in Customer Relationship Management (CRM). The results show that customer commitment has strong positive effects on customer retention. However, findings that effect of customer knowledge creation and customer acquisition on customer retention is weaker than that of customer commitment. The empirical findings help both researchers and practitioners in future customer process and customer retention research. The value of the paper consists in establishing the need of researching and incorporating customer retention process as an important support to keep organizations competitive within the global business environment.