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Retention Strategy and Customer Loyalty: An Analysis of Nigerian Telecommunication

Ighodalo, David Ehizojie PhD, Ajigbotoso Moses Ade PhD

Abstract

Satisfaction does not guarantee loyalty. The Global System for Mobile communication service providers must design specific enduring customer relations program me beyond basic satisfaction. The study examined retention strategy and customer loyalty: an analysis of Nigerian telecommunication sector. Socio-Technical Systems Theory aligns social subsystems with technical subsystems that effectively enhanced service recovery requires an integrated organization. Five hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel least squares regression model operated with E- Views.12. Survey design was adopted and data for the study was obtained through questionnaire survey administered to the targeted audience (GSM subscribers in Ogun State). The findings of the study indicate that price mechanisms, apology for service, celebrity endorsement, credibility of service, and facilitation of service have positive and significant effect on customer loyalty. However, the study concludes that credibility of service is most influential on customer loyalty, followed by service credibility. The study therefore suggested the needs for management should allocate resources on manpower training and the infrastructural facilities on ground. Also, the companies should continuously use refunds and gifts as a compensation to influence purchasing decision of subscribers and helps the company to overcome their competitors as consumer purchase products and brands.

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