Relevant drivers for customers' churn and retention decision in the nigerian mobile telecommunication industry

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.