Assessing the Role of Relationship Marketing on Customer Retention in Zambia‘s Financial Sector: A case study of GS Cash Advance Limited

Abstract

This study examined the influence of relationship marketing practices on customer retention at GS Cash Advance Limited in Lusaka, Zambia. A quantitative descriptive–correlational design was employed, drawing on data from 120 active clients selected using Slovin’s formula. A structured questionnaire measured four dimensions of relationship marketing—personalised communication, loyalty programme quality, digital engagement channels and systematic feedback mechanisms—together with customer retention indicators. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS), employing descriptive statistics, correlation and multiple regression analyses. The model explained 59 per cent of the variance in customer retention, indicating a strong predictive fit. Personalised communication (β = 0.31, p < 0.001) emerged as the most influential predictor, followed by loyalty programme quality (β = 0.27, p < 0.001), digital engagement channels (β = 0.20, p = 0.002) and feedback mechanisms (β = 0.17, p = 0.004). The findings demonstrated that retention improved when communications were timely and personalised, loyalty rewards were transparent and easy to redeem, digital platforms were reliable, and feedback was acknowledged promptly. The study concluded that relationship marketing exerts a substantial and quantifiable impact on client loyalty. It recommended that GS Cash Advance adopt data-driven personalisation strategies, compress time-to-reward in loyalty schemes, optimise digital service reliability and institutionalise systematic feedback loops to strengthen long-term borrower relationships. Keywords: relationship marketing, customer retention, personalised communication, loyalty programme quality, digital engagement, feedback mechanisms