CUSTOMER RELATIONSHIP MANAGEMENT AND CUSTOMER RETENTION POST PANDEMIC CRISIS IN STAR-RATED HOTELS IN NAIROBI CITY COUNTY, KENYA
Jimmy Calister Onyango (Bsc) - Department of Hospitality and Tourism, Kenyatta University, Kenya
Beatrice Kamau (Ph.D) - Department of Hospitality and Tourism, Kenyatta University, Kenya
Vincent Maranga (Ph.D) - Department of Hospitality and Tourism, Kenyatta University, Kenya
ABSTRACT
Customer retention is of great value for the long-term success of any hotel business because it is less expensive to retain a current customer than to acquire a new customer. Moreover, customers feel happy and appreciate the realization that the hotel is aiming towards enhancing their experience. Customer retention is of significant value to the hospitality industry, especially post a pandemic crisis whereby disruptions is experienced in the global economy and therefore, the need to generate more revenue for the resilience and stabilization of the hospitality industry. This study investigated customer relationship management and customer retention in the post pandemic in star-rated hotels in Nairobi City County, Kenya. This study will be of benefit to the educational institution, researchers, industry stakeholders and policy makers in the hospitality industry on matters concerning customer retention strategies during and post pandemic crisis. Commitment-trust theory of relationship marketing and social exchange theory guided the study. Mixed method research design was employed targeting 472 employees from 59 star-rated hotels located in Nairobi City County. Yamane sample size formula was used to derive a sample of 217 respondents who were identified using stratified and purposive sampling. Research instrument for the study was structured questionnaire. Two (2) hotels in Nairobi City County were chosen and used for pre-test study where 20 respondents were randomly selected. Validity was tested using expert opinion while Cronbach alpha aided in the reliability analysis with acceptable threshold of 0.7 and above used as the cut-off point. Pearson correlation and regression analysis were used to measure the strength of the relationship amongst various identified variables. The results showed a strong significant relationship between customer relationship management and customer retention of star rated hotels. The study concluded that customer relationship management significantly affects customer retention. The study recommended the need to develop cyber security policies to inspire the development of safe systems and digital channels for more consumer protection of personal data. Future research may focus on other areas related to star rated hotels’ operations to establish the difference in the outcome. Consideration may also be made with studies in different geographical locations.