International Journal of Business, Management and Commerce (IJBMC)

Customer Knowledge Management (CKM) has emerged a winning strategic tool which organizations and specifically banks can utilize to increase customer retention due to its ability to establish and maintain customer relationships. Through knowledge management organizations can be able to: Monitor customers’ behaviour, identify and meet customers’ needs, enhance their speed of service delivery and improve the quality of products and services. To achieve this, firms must be in a position to create, store, distribute and utilize customer knowledge in a manner that is accurate, timely and responsive. Through a survey of 385 customers from 25 commercial banks in Kenya, this study empirically investigates the relationship between customer knowledge management and customer retention. The sample was obtained through multistage sampling where stratified and simple random sampling methods were employed. Structured questionnaires were used to correct primary data. The data was subjected to descriptive, correlation and regression analysis. The findings ascertain that customer knowledge management directly and significantly influences customer retention.