Abstract:
The purpose of this study was to examine internal marketing and its influence on customer retention
in Tanzania banking industry, a case of NMB Bank in Arusha City. Specifically, the study intends,
to identify the internal marketing dimensions currently being employed at NMB bank in Arusha city,
to determine the importance of the internal marketing dimensions provided by employees within
NMB bank Arusha city, and to explore the effect of internal marketing dimensions on customer
retention. Also, the study was guide by Service-Profit chain model.
This sturdy adopted descriptive research design, utilizing a mixed method approach qualitative and
quantitative methods of research. With a total sample of 79 employees of NMB in Arusha city. Data
were collected through survey using questionnaires and interview as tools for data collection, also
were analyzed using SPSS, and by interpreting respondents’ responses. The findings obtained
revealed that internal marketing dimension executed at NMB bank were, empowerment, information
sharing, offering incentives, reducing communication gap, and extensive education. The study also
revealed the importance of internal marketing dimensions to both employees and the organization.
And lastly, the contribution of internal marketing on customer retention was revealed in terms of,
great customer satisfaction, improve customer perceived relationship with frontline employees,
customer good word of mouth and share on social media, discourage customer switching behavior
and encourage loyalty, as well as customer perceived service quality.
The study concluded that employees get more satisfied with internal marketing dimensions
executed within the bank which result to improved service quality to external customers satisfaction
and retention. And the study recommended on career development, improvement of service
environment and discuss with employees on incentives.
