The Impact of Customer Retention on Organization Profitability in the FMCG Sector in Nigeria.

Abstract:

In the competitive domain of fast-moving consumer goods (FMCG), retaining customers is essential for the overall organizational performance of an FMCG company.This research investigated the impact of customer retention on organizational profitability in the Fast-Moving Consumer Goods (FMCG) sector in Nigeria. The study employed a cross-sectional survey approach, with data collected from 248 employees in 10 different FMCG companies in Oyo State, South West, Nigeria. The findings revealed a strong positive correlation (r=0.783) significant at p < 0.01 between customer retention and organizational profitability, highlighting customer retention as a key driver of sustained profitability. The study further explored specific components of customer retention, including personalized marketing, loyalty programs, quality products, and customer support, all of which showed strong positive associations with organizational profitability. Survey results indicated that customer satisfaction is a leading factor contributing to customer retention, emphasizing the importance of understanding and meeting customer expectations. Based on these findings, recommendations are provided for FMCG companies to prioritize customer retention strategies, such as personalized marketing and quality customer support, to enhance organizational profitability and success in the Nigerian FMCG sector.