Customer Satisfaction and Performance of Commercial Bank a Case Study of Dahabsfflil Bank in Bosaso, Somalia

ABSTRACT The study was set to examine the effect between customer satisfaction and performance of banks in Dahabshijj Bank in Bosaso-Somaija. The objectives included to establish the effects of customer retention on performance of commercial banks, assess the effect of customer loyalty on performance of banks in Bosaso Somalia and to determine the effect of customer service on performance of commercial Banks in Bosaso-Somalia, The study employed descriptive correlation research design on the respondents in Dahabshiil Bank in Bosaso Somalia; this was based on quantitative research approaches. The study was conducted based on the 158 respondents who were customers and employees of Dahabshiil Bank. The findings were that customer loyalty accounts for performance of the banks by 5%. On the second objective customer retention alone have a 33.4% effect on the performance of the Dahabshiil bank in Bosaso Somalia while on the third objective customer service alone have a 2% effect on the performance of the Dahabshiil bank in Bosaso Somalia. The researcher concluded that customer loyalty had no significant effect on performance of Dahabshiil commercial bank. This implies that customer loyalty accounts for performance of the banks by low contribution therefore established establishing strong customer retention was improved the performance of the bank. On the second objective customer retention alone had a reasonable effect on the performance of the Dahabshiil bank in Bosaso Somalia; the results reveal that performance can be ignited through customer retention, the improvement of which is fundamental to improving the performance of the bank. The third objective reveals that customer service alone had a very low effect on the performance of the Dahabshiil bank in Bosaso Somalia. There is need to focus on other factors other than customer retention to establish a full explanation of the performance of the bank through the customer satisfaction dimension of customer services for the bank. The researcher recommend for improving the state of retention of the customers in order to raise awareness for the performance of the organization. There is need to notify present to old and new customers of the bank’s continued commitment to helping with any service concerns by posting signs in bank windows, drive-through areas and in on-hold phone messages. Management at bank need to understand that a bank’s image is based upon a customer’s unique experience. Management at the bank needs to understand that excellent customer service is not just about satisfying customer needs but going the extra mile to exceed expectations. in highly competitive rriarkets such as banking, failure to provide service to a high standard can lead to reputational damage and loss of business. Therefore, there is need for consistency and quality of banking services offered.