Impact of customer satisfaction on customer retenstion in bank of Ceylon, Jaffna district, Sri Lanka

Banking sector is rapidly growing into a major contributor to the Sri Lankan as well as the world economy, providing an ever increasing proportion to their GDPs. Bank of Ceylon is the leading state bank in Sri Lanka it's contributing a lot to economy. The purpose of this study was to find out why customers repeating to the same provider in banking industry especially in bank of Ceylon in Jaffna District in Sri Lanka. The objective of this study is to find out how the variable service reliability will lead on customers retention and customer satisfaction. There are five branches of bank of Ceylon (Bank of Ceylon Hospital Branch, Stanly Road Branch, Thirunelvely Branch, Nallur Branch, KokuvilBranch of Jaffna District) in targeted areas. Primary data were collected from the customers through well designed questionnaires. Targeted area is Jaffna district and sample size is250 questionnaires and 50 questionnaires from each branch. Collected data has analyzed by quantitative techniques and MS excel sheet used to interpretation. It has found out there is a positive relationship between retention and customer satisfaction. So results expressed that agreed level of customer satisfaction would increase customer retention. But it can be seen that there are some more factors are influencing in customer retention behavior. Future researches have highlighted as to study additional variable affect retention behavior.