The impact of product innovation on customer growth in Tanzania: the case of KCB Bank Tanzania Card Products

The purpose of this study was to measure the impact of product innovation as a customer Growth Strategy using the case study of KCB Card products. Since the lunch of KCB card products over one year ago, no apparent research has been done to measure the impact of this product innovation as a customer growth. The study therefore tried to answer and investigate the effect of product innovation on customer acquisition, customer satisfaction and customer retention. Descriptive research design was used in the study. The population on this study includes 40 employee respondents and 100 customer respondents from five KCB T branches which have been in operation for at least two years. Purposive and random sampling techniques were used in determining the sample population size. The data was collected using questionnaires that were administered to each category of the respondents. The data was collected using questionnaires that were administered to each category of the respondents. The data was then edited and analysed using descriptive statistics specifically the mean and then presented in form of tables and figures. Statistical Package for Social Service (SPPS) software was used as the data analysis tool. The study findings further indicated that there is a strong correlation between product innovation and growth of customer base. Further, there is indication that customer acquisition, satisfaction and retention as key factors in customer base growth are largely impacted by product offerings and such there is need for organizations to continuously innovate products in order to remain competitive in the industry they operate. Regarding further research, the researcher suggests that future research could replicate the research objectives with a focus on other banks besides KCB Bank Tanzania to confirm the similarities of the findings. In addition, a study could be conducted on the whole banking industry to assess the impact of product innovation on customer acquisition, satisfaction and retention. Moreover, future researchers can look at the impact of product innovation on the banks profitability.