KEY ACCOUNT MANAGEMENT PRACTICES AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

This study sought to determine the relationship between key account management practices and performance of commercial banks in Kenya. The hypothesis that there exists a statistically significant relationship between key account management practices and performance was tested. The study was a descriptive cross-sectional survey. All commercial banks in operation in Kenya as at 30th, April 2016 were used in the study. Data was analyzed using both descriptive and simple regression analysis. The findings indicate that people related practices were the most intensely used by commercial banks. Customer satisfaction was the most applied measure of non financial performance in commercial banks. The regression results indicate a statistically significant relationship between key account management practices and performance of commercial banks. The findings have implications for both practice and theory; It is reported that people related practices were rated highest by respondents implying that these KAM practices were found to have the greatest influence on performance. Managers of commercial banks therefore need to invest more in these people related practices. The findings also have implications for theory; the greatest theory in the key account management debate is the relationship marketing theory which postulates that firms invest in long term relationships with their customers since such relationships are likely to give rise to benefits for both supplying and buying firm.