Effect of Relationship Marketing on Customer Retention in the Telecommunications Industry

Abstract

This study centered on the effect of relationship marketing on customer retention in the telecommunications industry. It was conducted to assess the effects of customer care, communication, trust-building and service quality on customer retention in the telecommunications context. The study adopted survey research design. A structured questionnaire was used to obtain primary data from 198 customers of MTN Nigeria Plc and Globacom Nigeria Plc in Calabar. The data were analyzed and interpreted using descriptive statistics, while the hypotheses developed for the study were tested using multiple linear regression. Consequently, the findings of the study revealed that customer care, communication, trust building and service quality had significant positive effects on customer retention of telecommunication firms in Calabar. Therefore, the study recommended that: telecommunications companies should strengthen their customer care capability by using trained service professionals to elicit and promptly resolve customers enquiries and complaints; telecommunications companies should improve communications with customers by opening up more channels such as phone calls, direct messaging, social media and email through which information can be transmitted to subscribers to enhance informed patronage decisions; and it is imperative for telecommunications companies to consolidate customers’ trust in their delivery capabilities by demonstrating through effective service delivery that they are capable of satisfactorily meeting the service needs of subscribers.