Customer Retention Strategies of Fast-Food Outlets in South Africa: A Focus on Kentucky Fried Chicken (KFC), Nando's, and Steers

Abstract

The primary aim of the research was to critically analyze and evaluate the different customer retention strategies being implemented by fast-food outlets such as Kentucky Fried Chicken (KFC), Nando's, and Steers in South Africa. The fast-food industry in South Africa is experiencing numerous market-related changes, which range from intense globalization forces to heightening competition levels. The pressure on businesses today is further increased by a market where the customer acquisition rate is slowing, customer loyalty is decreasing, and sales cycles are lengthening. In such an environment, losing a valuable customer to a competitor can have a significant impact on profitability and growth. As a result, many companies have shifted their focus from customer acquisition to customer retention. The research was primarily concerned with assessing customer relationship management, relationship marketing, and communication through technology as strategies to maintain intimate relationships with customers. Personal interviews and in-depth interviews with the help of questionnaires were used to collect primary data in the research. The results indicated that KFC, Nando's, and Steers adopt similar marketing strategies or use the same concepts to manage their relationships with both internal and external customers and other stakeholders. These strategies and concepts include customer relationship management, relationship marketing, and technological means of communication.