Relevant Drivers for Customers` Churn and Retention Decision in the Nigerian Mobile Telecommunication Industry
Adebiyi Sulaimon Olanrewaju, Oyatoye Emmanuel Olateju, Amole Bilqis Bolanle
Keywords:
Drivers, churn, retention, telecommunication, mobile number portability, logistic regression.
Abstract:
The need for better support marketing decision on customers who are likely to leave a service
provider for a competitor is very essential to the survival of most telecommunication firms. The
application of logistic regression to the study of customer churn and retention decision in the
Nigerian telecommunication industry falls into proactive methods, which helps in a better understanding
of the needs of subscribers, to be able to predict their churn and retention decision
in the industry and enhance better marketing strategies with a research driven policy guide for
the operators in the industry. The purpose of this study is to ascertain the relevant drivers of customers`
churn and retention in the growing Nigerian mobile telecommunication industry. Considering
this issue, the logistic regression models have been used as the evaluating method. Four
hundred and eight questionnaires have been used in this study. The population of this questionnaire
consists of subscribers of mobile telecommunication in the six selected campuses of higher
institution of learning in Lagos-state, Nigeria. The data collected was analysed by STATA 12
software. The results showed that the coefficients of mobile number portability (MNP) services
and dubious promotions are positive and significant. Furthermore, low coverage and unwanted
calls and SMS are positive and significant. This implies that the better the availability of MNP
services, the greater the likelihood of customers’ churn. More so, an increase in quality of calls
provided by mobile telecom firms will increase the likelihood of customers’ loyalty by retention.
The study recommends strong institutional measures for the overhaul of mobile services provision
towards an improved service delivery in Nigeria.
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10.7441/joc.2016.03.04
Adebiyi S. O., Oyatoye E. O.,
Amole B. B.(2016). Relevant Drivers for Customers` Churn and Retention Decision in the Nigerian Mobile Telecommunication Industry. Journal of Competitiveness, 8 (3), 52-67 https://doi.org/10.7441/joc.2016.03.04
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