THE IMPACT OF CLIENT CENTRICITY STRATEGY ON THE RETENTION OF CLIENTS IN SELECTED COMMERCIAL BANKS IN MAKATI AREA

Abstract

Client-centricity strategy is an approach that theorizes that serving clients’ needs leads to their retention. In the advent of the current pandemic, banks must also leverage their approach to the current situation to retain clients. This study aims to provide information to financial institutions, particularly the banking sector that nowadays is going through a diverse change in strategic approach. The study investigated the impact of client-centricity strategy on the retention of clients in selected commercial banks in Makati area through the perception of bank employees. Using the quantitative approach and descriptive design, this study determined the impact of client-centricity through its four pillars (targeting, metric, value proposition, and cross-departmental collaboration) on retention. Analysis was done on employees of five commercial banks (based on the April 2022 BSP Directory of Universal and Commercial Banks) through stratified random sampling to determine client-centric usage. A total of 153 officers answered the strategy questionnaire and 163 staff answered for the level of retention. By Pearson correlation, multi-comparison, and Bootstrap corrected and accelerated (Bca) regression analyses, the pillars of client-centricity strategy influence on client retention were statistically significant at 5% level; with metrics as the highest impact among others when utilized as bank indicators for client retention. The five commercial banks in Makati believed and agreed that the utility of these strategies leads to more clients retained. Satisfied clients are retained because they are carefully targeted, have successful relationships with the bank (metric), interact with customers (value proposition), and trust that cross-departmental collaboration flow within the firm.