Market Positioning and Customer Retention in Savings and Credit Cooperative Societies in Kiambu County, Kenya
DOI:
https://doi.org/10.53819/81018102t3156Abstract
Customer retention remains a critical challenge for Savings and Credit Cooperative Societies (SACCOs) in Kenya, with attrition rates rising by 12% over the past five years despite SACCOs controlling over KES 1.5 trillion in assets. Many SACCOs struggle to clearly communicate their unique value propositions and differentiate their services in an increasingly competitive financial landscape, resulting in diminished member loyalty and reduced organizational sustainability. This study examined the effect of market positioning on customer retention in SACCOs in Kiambu County, Kenya. The research was anchored on Relationship Marketing Theory, which emphasizes building long-term customer relationships through clear value propositions and differentiated offerings. The study employed a cross-sectional descriptive research design combining quantitative analysis. The target population consisted of 160 middle and top managers from 16 licensed deposit-taking SACCOs in Kiambu County. Using Yamane's formula and stratified random sampling, 150 respondents participated in the study. Data was collected using self-administered questionnaires and analyzed using SPSS version 28, employing descriptive statistics, correlation analysis, and multiple regression analysis. Results showed that market positioning had the strongest positive and statistically significant effect on customer retention (β = 0.662, p < 0.001), accounting for 43.2% of variance in retention outcomes. The study concluded that clear communication of SACCO's unique value proposition and effective differentiation from competitors significantly drives member loyalty. The study recommends that SACCOs invest strategically in marketing strategies that distinctly differentiate them from competitors and regularly review their positioning strategies based on market intelligence and customer feedback.
Keywords: Market positioning, customer retention, SACCOs, strategic management, relationship marketing
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