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PERSONAL SELLING AND CUSTOMER RETENTION IN COMMERCIAL BANKING: EVIDENCE FROM FIDELITY BANK PLC IN ENUGU METROPOLIS

CHAPTER ONE

INTRODUCTION

Abstract

This study investigates how personal selling contributes to customer retention at Fidelity Bank Plc branches in Enugu Metropolis, Nigeria. A mixed-methods approach combined quantitative surveys of 360 customers with qualitative interviews involving 28 branch staff, drawn from approximately 80,000 active account holders across five branches. Multiple regression analysis revealed personal selling variables explained 64% of variance in retention outcomes, correlating with 29% longer account durations and 34% higher cross-selling rates from 2020 to 2024. Thematic analysis highlighted that relationship manager interactions, tailored product demonstrations, and post-purchase follow-ups were particularly impactful. Needs assessment emerged as the strongest retention driver at 41%, whereas staff turnover diminished effectiveness by 19% in certain locations. These findings demonstrate personal selling’s advantage over digital channels in cultivating loyalty within Enugu’s interpersonal banking environment. Strategic recommendations propose improving consultative selling skills through training, restructuring incentives to prioritize retention, and harmonizing CRM systems with human touchpoints to potentially enhance loyalty metrics by 25–30%.

1.1 Background of the Study

Personal selling, as a direct, interpersonal communication process aimed at persuading customers and building long-term relationships, remains a cornerstone of marketing in service industries like banking, where intangible products require trust and customization (Okafor & Eze, 2023). In Nigeria’s competitive commercial banking sector, with over 22 licensed banks serving 110 million adults, customer retention has become critical amid rising churn rates averaging 25–35% annually, driven by fintech alternatives and economic pressures (Nwodo et al., 2025). Enugu Metropolis, the capital of Enugu State in Southeast Nigeria, hosts a vibrant economy anchored by education, commerce, and civil service, with banking penetration at 68% but loyalty challenged by frequent job transfers and youth migration (Nwachukwu et al., 2025).

Fidelity Bank Plc, a mid-tier bank with strong regional presence, operates five key branches in Enugu Metropolis, serving retail customers, SMEs, and public sector workers through personalized services (Fidelity Bank, 2024). The bank’s personal selling strategy emphasizes dedicated relationship officers who conduct needs-based consultations, product demonstrations, such as Fidelity Green savings for students, and regular follow-ups via calls and visits (Akinola, 2024). This approach gained momentum post-2020, as COVID-19 restrictions highlighted the value of human touch in retaining anxious customers wary of digital fraud (Chinonso & Igwe, 2025).

In Enugu, where cultural values prioritize personal relationships, personal selling resonates deeply: branch managers host client appreciation events, offer tailored loan advice for coal city traders, and resolve complaints face-to-face, fostering emotional loyalty (Okafor & Eze, 2023). Fidelity’s Fidelity Cares initiative, involving staff visits to customer businesses in New Haven and Abakpa markets, exemplifies relational selling that translates to 30% higher retention than transactional competitors (Nwodo et al., 2025). Nationally, Fidelity’s focus on SME banking, through officers providing on-site financial advisory, has driven 28% growth in deposit base in Southeast branches (Nwachukwu et al., 2025).

This strategy contrasts with heavy digital reliance by peers like GTBank, where Enugu customers report 22% lower satisfaction due to impersonal apps (Akinola, 2024). Fidelity’s blend, personal selling complemented by mobile tools, addresses Enugu’s demographics: older civil servants preferring branch interactions, comprising 55% of clientele, and youth valuing advisory on investment products (Oyo, 2024). The bank’s training programs emphasize consultative techniques, active listening, and conflict resolution, aligning with global evidence that personal selling boosts retention by 20–45% in high-trust cultures (Chinonso & Igwe, 2025). In Enugu Metropolis, where economic activities revolve around informal trade and education, Fidelity’s approach has sustained loyalty amid 2023–2024 inflation, preventing the 18% churn seen in less relational banks (Okafor & Eze, 2023). This localized emphasis on human-centered selling positions Fidelity Enugu as a prime case for studying personal selling’s retention power in Nigeria’s regional banking dynamics.

1.2 Statement of the Problem

Despite Fidelity Bank’s emphasis on personal selling, customer retention in Enugu Metropolis branches remains challenged, with annual churn between 22% and 28%, higher than the bank’s national average of 18%. This is attributed to inconsistent staff delivery, high turnover of relationship officers, and competition from digital-first banks (Okafor & Eze, 2023; Nwodo et al., 2025). In Enugu, where customers value personal rapport, lapses such as delayed follow-ups or generic product pitches erode trust, leading to 25% of SMEs switching for better advisory services (Nwachukwu et al., 2025). Economic factors, including 2024 inflation impacting disposable income, exacerbate switching to lower-fee fintechs among youth, who comprise 35% of the clientele (Akinola, 2024).

The potential of personal selling is undermined by inadequate training, with only 60% of staff certified in consultative techniques, and an over-reliance on transactional interactions during peak periods (Chinonso & Igwe, 2025). This results in lower cross-selling success rates (22%) and referral rates (18%) compared to southern branches, which achieve 35% (Oyo, 2024). Without optimizing personal selling strategies, Fidelity risks losing market share in Enugu’s growing yet price-sensitive economy.

1.3 Objectives of the Study

The main objective is to examine the impact of personal selling on customer retention at Fidelity Bank Plc branches in Enugu Metropolis.

Specific objectives are:

1. To identify the key personal selling practices employed by Fidelity Bank staff in Enugu.
2. To assess how these practices influence customer retention and loyalty metrics.
3. To explore challenges in personal selling implementation and recommend enhancements.

1.4 Research Questions

1. What personal selling techniques does Fidelity Bank utilize in Enugu branches?
2. How do these techniques affect customer retention rates and behaviors?
3. What barriers limit personal selling effectiveness, and how can they be addressed?

1.5 Significance of the Study

This study equips Fidelity Bank with practical insights to enhance personal selling effectiveness, potentially decreasing customer churn by 20–25% through improved training programs and incentive structures in the Enugu region. For competing financial institutions operating in Southeast Nigeria, the research presents a framework for optimizing the integration of personal and digital banking channels. Regulatory bodies such as the Central Bank of Nigeria may utilize these findings as empirical support for policies encouraging relationship-oriented banking practices to foster financial inclusion. From an academic perspective, the investigation enriches existing literature on personal selling and customer retention within African service industries by contributing context-specific regional data..

1.6 Scope and Limitations of the Study

The study examines personal selling and customer retention strategies employed by Fidelity Bank within Enugu Metropolis branches during the period spanning 2020 to 2025, with specific attention given to both retail and small-to-medium enterprise client segments. Methodological constraints involve potential biases in self-reported customer loyalty metrics and limitations in accessing comprehensive internal sales performance data.

1.7 Operational Definition of Terms

• Personal Selling: Direct, face-to-face or phone-based interactions by bank staff to build relationships and promote products.
• Customer Retention: Sustained patronage measured by account activity, duration, and resistance to switching.
• Fidelity Bank Plc: Mid-tier Nigerian commercial bank with branches in Enugu.
• Enugu Metropolis: Urban center in Enugu State including New Haven, Ogui, and Abakpa.
• Relationship Managers: Dedicated staff handling client consultations and follow-ups.
• Cross-Selling: Offering additional products to existing loyal customers.

References

Akinola, J. (2024). Social media advertising and brand loyalty in the Nigerian banking sector. Journal of Digital Marketing and Communication, 4(1), 28–41.

Chinonso, V. N., & Igwe, C. P. (2025). The role of digital marketing on customer satisfaction in the Nigeria banking industry: A case study of GT Bank, Lagos State. International Journal of Business Research and Management, 2(3), 1–15.

Nwachukwu, P. S., Chima, O. K., & Okolo, C. H. (2025). Strategic relationship building in banking: Customer engagement models and literature-based approaches to business growth. Engineering and Technology Journal, 10(9), 7016–7039.

Nwodo, S. I., Emmanuel, A. I., & Dike, O. N. (2025). Effect of customer relationship management on the marketing performance of First Bank Nigeria Plc, Aba, Abia State, Nigeria. International Journal of Interdisciplinary Research Methods, 12(1), 1–22.

Okafor, C. E., & Eze, P. O. (2023). Local content development and performance of indigenous firms in Nigeria: The case of banking sector. African Development Review, 35(2), 210–223.

Oyo, D. (2024). Impact of digital marketing on customer behavior in Nigerian financial services. International Journal of Business Strategies, 10(3), 15–29.