Customer Retention with Bundle Services Matrix for Banks in the Second Decade of 21 Century

  • Kakhaber DJAKELI Caucasus International University
  • Salome TOGONIDZE Caucasus International University
  • Giorgi KHABURZANIA Caucasus International University


The problem of consumer retention is well known in marketing literature. Actually, attraction of the new customers is sometimes three times more costly than their retention – but what is the key for that? Scientific marketing literature and a lot of marketing researches at the financial services market shows that old loyalty of customers towards financial institutions is in reducing stage – is being reduced. What makes customers to come back to the bank again and again? This main research question made us make a special customer survey in the banking sector of Georgia. We made literature review too and – based on literature review the Bank Customer Retention Matrix has been established which seems to be comprehensive for the banking business in future.  The data for marketing research was obtained from a convenience sample of 5 bank customers in Tbilisi, capital of Georgia. According to our hypothesis – if the decision to change the bank in the past period was a function of price, reputation, service quality, effective advertising competition, involuntary switching, distance, switching costs and
demographic characteristics, in future it can be seen - observed in other factors. Convenience sample analysis and some factor studies were used to analyze the
data and identify and rank the factors that impact the bank switching behavior of customers in Tbilisi, Georgia.
Keywords: customer retention, marketing of financial services, social media
JEL: M30