Effects of loyalty programs on customer retention in the Zimbabwean mobile telecommunication industry

Abstract

Social entrepreneurship is the use of innovative, sustainable, and market-driven business models to make a beneficial social, environmental, or economic effect. Telecommunications companies' launch of reward programs falls under the category of social entrepreneurship. Several past research has focused on loyalty programs. Globally, the telecommunications industry is heavily saturated, and services are becoming commoditized. Due to that, service providers are vulnerable to high churn rates. Previous research indicates that customer retention in that industry is influenced by promotional offers, value-added products and services, network quality, service quality, and inexpensive pricing (Viriri and Phiri, 2017). Research Objective: This study looks at the impact of reward programs on customer retention in Zimbabwe's mobile telecommunications business. Research Design and Methods: The study employed survey research design. The population of the study were key informants in Zimbabwe’s mobile telecommunications industry, including subscribers and management. The study triangulated purposive and stratified sampling methods for objectivity. A sample of 356 was used in the study. Respondents indicated that they encounter problems with their service providers, and customer satisfaction is relatively low. Results: Study findings have shown that loyalty programs in Zimbabwe's mobile telecommunications industry promote customer retention. Conclusions: Even though there is a positive relationship between loyalty programs and customer retention respondents doubt their credibility in promoting customer satisfaction.