A Dissertation Submitted to the Mzumbe University Dar es Salaam Campus College in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Business Administration in Corporate Management (MBA-CM) of Mzumbe University
2019
The study assessed the effectiveness of customer retention strategies in enhancing customer loyalty in Tanzania telecommunication industry, using Airtel as a case study. The study used concurrent triangulation design of mixed methods, which allowed the collection, and analysis of qualitative and quantitative data through unstructured interviews and content analysis of Airtel staff and customer records. Purposive and simple randomization techniques were used to draw a sample size of 37 respondents comprising of 7 staff and 30 customers of Airtel Tanzania. Data were analyzed thematically based on the themes that emerged out of interview responses.
Findings show that Airtel has successfully maintained customer trust and satisfaction by offering affordable charges for voice calls and Internet bundles. Therefore, low prices are the catalyst for customer loyalty in Tanzania. On the contrary, customers expressed dissatisfaction with the quality of services provision, particularly in Airtel Money services, network coverage and customer care. This is one of the factors for customer defection. Moreover, the study findings revealed that retention strategies have a strong influence on adults and young adult customers.
The study concluded that implementation of retention strategies in mobile networks is challenged by regulatory policies, limited budget and customers owning multiple sim cards which they simultaneous shifting from one network to another. The study recommends a review of regulatory policy to allow mobile phone operators to send bulky promotional messages to their customers. Also, mobile networks should review their retention strategies to effectively serve and satisfy their customers with quality services and products.