An Assessment of the Impact of Total Quality Management Practices on Customer Retention in Commercial Banks: A Case of Absa Bank Zambia Plc

Abstract

This study examined how Total Quality Management (TQM) practices influence customer retention in commercial banks in Lusaka, Zambia, using Absa Bank Zambia Plc as a case study. It looked at four main aspects of TQM: leadership commitment, employee involvement, process management and customer focus and explored how this affect service quality, customer satisfaction, customer loyalty and customer attrition. The study was guided by Deming’s Theory of Total Quality Management and the SERVQUAL Model. It adopted a positivist philosophy and a deductive approach, with a quantitative survey design. Data was collected using structured questionnaires from 200 respondents selected through stratified random sampling and the information was analysed in SPSS version 26 using descriptive statistics, correlation and regression analysis. The findings showed that strong TQM practices contribute to better service quality, higher customer satisfaction, stronger customer loyalty and lower customer attrition. The study concludes that TQM is a valuable strategy for improving customer retention and enhancing competitiveness in the banking sector. The study recommends that banks strengthen customer- centric relationship management practices by enhancing employee training and involvement, improving process management and implementing robust customer feedback systems. These measures are expected to improve service quality, foster customer satisfaction and loyalty and support the development of sustainable long term customer relationships.