Influence of Customer Retention on Market Share in Chemelil Sugar Company Limited, Kenya

Abstract

This study determined the influence of customer retention on market share in Chemelil Sugar Company in Kenya. The study was conducted using a case study research design. The study employed stratified random sampling, census and purposive sampling techniques to select 116 customers, 16 marketing staff and 40 informants respectively. Both primary and secondary data was used. While secondary data was obtained from authoritative documentations from the target units, primary data was collected by use of questionnaires at Chemelil Sugar Company Limited. Quantitative data was tested by use of inferential statistics and qualitative data analysed using descriptive analysis techniques and presented in form of frequency tables and charts. The sugar firm ensures retention of customers in order to reduce the cost of acquiring new customers. This was attained through making existing customers were satisfied and the long term relationship was maintained. The firm Customer retention played a critical role within CRM strategy and customers continue to be loyal to the firm when they feel and realize the better value being offered. There was a positive relationship between the customer retention and market share (r=.615, n=69, p<.05). The customer retention is one of the CRM outcomes influencing market share in sugar sector. The sugar firms should devote much attention and effort in retaining existing ones rather than attracting new customers. The sugar firms should also emphasize more on building relationship and caring for the customers rather than making sales.