RELATIONSHIP MANAGEMENT AND CUSTOMER RETENTION IN SELECTED SME’S IN LAGOS STATE

Abstract

This study investigates the relationship management and customer retention in selected 5 SME’s

namely Lidya, Paga, Talowork, KoloPay and Lendha in Lagos State. The specific objectives are

to: ascertain the relationship between knowledge management and customer retention; determine

the relationship between technology adoption and customer retention; examine the relationship 

between CRM restructuring and customer retention; and investigate the relationship between

customer orientation and customer retention. Data were collected using questionnaires

distributed to 120 participants, with 115 valid responses returned. The collected data were

analyzed using SPSS, employing frequency, simple percentages, graphs, and tables. Multiple

regression analysis was used to test the hypotheses at a 0.05 significance level. The findings

reveal a very strong positive correlation (R = 0.95) between the independent variables

(Knowledge Management, Technology Adoption, CRM Restructuring, and Customer

Orientation) and Customer Retention. The study recommends that SME’s should invest in robust

knowledge management systems, ensure continuous employee training, and implement internal

knowledge-sharing platforms. Additionally, adopting the latest technologies, such as CRM

software, artificial intelligence for personalized recommendations, and data analytics tools to

understand customer behavior, can significantly enhance customer retention.