Influence of Customer Focus Strategy on Financial Performance of Deposit-Taking Saccos in Kenya

Abstract

Purpose: The purpose of the study was to assess the influence of customer focus strategy on financial performance of deposit-taking SACCOs in Kenya. Materials and Methods: A descriptive research cross-sectional approach was applied. The target population of this study was 174 DT-SACCOs in Kenya. The sample size was 174 respondents. Structured questionnaires were used to collect primary data from the selected respondents. Data collection method was by use of questionnaires. Quantitative data was analyzed descriptively and inferentially. Data was coded and analyzed using the Statistical Package for Social Sciences (SPSS v23.0). Results were then presented in tables, diagrams and charts. Findings: The results showed that Customer focus strategy had a positive and significant relationship to financial performance (r=0.526, p=0.000; R2=0.277, β=0.913). The findings indicate that organizations that prioritize customer focus are more likely to achieve improved financial outcomes. Implications to Theory, Practice and Policy: The study recommended that organizations prioritize customer focus strategies to enhance their financial performance. By emphasizing customer focus, organizations can improve their financial performance by cultivating customer loyalty, driving revenue growth, and differentiating themselves in the marketplace. Additionally, this approach contributes to policy by guiding lawmakers to create customer-centric regulatory frameworks that promote sustainable business growth. Furthermore, scholars can benefit from this study by gaining insights into the relationship between customer-focused strategies and financial performance, thereby enriching theoretical understandings in the field of business management.