Innovation, Customers Satisfaction and Retention in Commercial Banks in the Buea Municipality

With increasing competition in the banking market, most businesses seek to attain a competitive position through innovation in the market by focusing on customer satisfaction and retention. In this light, this study was out to examine the effect of innovation on customer satisfaction and retention in commercial banks in the Buea Municipality. To this effect, a survey design was adopted for the investigation that gave room for the collection of primary data from 384 customers of commercial banks in Buea. These customers were selected randomly and the data obtained was analysed using a series of multiple regressions. The results of this study showed that process, market and organisational innovations all had significant effects on customer satisfaction while product innovation had an insignificant effect. Also, the results illustrated the fact that innovation in terms of product, process, market and organisational innovations all had significant effects on customer retention. Finally, this study’s results demonstrated the fact that that process, market and organisational innovations all had significant effects on customer satisfaction and retention as a collapsed variable while product innovation had an insignificant effect.