EFFECTS OF CUSTOMER RELATIONSHIP MANAGEMENT ON LOYALTY IN THE TELECOMMUNICATIONS INDUSTRY IN ONDO STATE, NIGERIA

Abstract

This study examined the effect of customer relationship management (CRM) on loyalty in the telecommunications industry in Ondo State, Airtel Networks Ltd as a case study. The objectives of this study are to evaluate the effects of quality of service provided on customer loyalty, to examine if sales promotion encourage customer loyalty and satisfaction, and to evaluate the effect of service charges on customer retention. For the purpose of the study, a sample of 260 respondents of Airtel network customer was selected from Federal College of Agriculture, Akure (FECA) and Adekunle Ajasin University, Akungba. Using a multistage sampling technique, questionnaire was used to collect data from respondents. The data collected were analyzed using frequency tables, percentage, and the hypothesis for the study was tested with chi-square (X 2 ) test statistics and Pearson Correlation technique. The study showed that sales promotion is one strategy that can influence customer loyalty, and good quality of service enables customer satisfaction loyalty and retention. It was also revealed that service charge (price) is not the main drives of customer satisfaction and retention in the telecoms industry. The study recommended that telecommunications operators should put in place mechanisms to improve customer satisfaction and subsequently customer loyalty. Telecommunications operators should continuing improve on the reliability and quality of their service, reduce network congestion and poor signals. Finally, telecom operators should respond quickly and favourably to customer complaints.