Customer Satisfaction, Retention and Loyalty among Mobile Telecommunication Subscribers in Selected Local Government Areas of Adamawa State, Nigeria

Abstract

This study examined the effect on customer satisfaction, retention and loyalty in telecommunication industry in Adamawa state Nigeria. The study adopted quantitative research design. Data were collected using structured customer satisfaction, loyalty and retention questionnaire designed on five points Likert scale. The study target population was 1,292,064 customers; statistical formula for calculating sample size by Taro Yamani was used to draw a sample size of 400 customers of telecommunication service providers in Adamawa state, using proportionate stratified random sampling technique, 400 questionnaires were distributed to the sampled respondents. A total of 370 copies of the questionnaires were filled and returned to the researcher. However 10 out of the 370 questionnaires had defect, and the analysis of the data was based on 360 that had no flaw. Data collected were subjected to inferential (correlation and regression) statistics with the aid of Statistical Package for Social Sciences (SPSS 26.0). Findings of this study indicate that customer satisfaction has positive and significant effect on customer retention (β = 0.690; p = 0.000). Also, customer satisfaction has positive and significant effect on customer loyalty (β = 0.683; p = 0.000), and the study revealed that customer retention positively and significantly impact customer loyalty (β = 0.815; 0.000). The study therefore concluded that customer retention depend largely on customer satisfaction, meanwhile, customer satisfaction also play a significant role in customer loyalty, and that customer retention is an effective predictor of customer loyalty. Subsequently, the study recommended that telecommunication network providers should consistently search for and improve on customers’ satisfaction factors to continually attract and retain their valuable customers.