An Evaluation of the Bonus Reward System and Customer Retention in Telecommunication Industry: the Case of Safaricom Limited

Abstract

The business world is facing an unprecedented competition between the various organizations which has compelled the organizations to adopt different strategies to retain customers. Implementing a strategy requires changes in an organization. This may take the form of developing new processes of doing things, improving on the existing process and building capacity among employees and customers to enable them work inherently with new processes and systems implemented in an organization. The study main objective was to evaluate of the bonus reward system and customer retention in telecommunication industry: the case of safaricom limited. This study adopted a case study design. The study used primary which was collected by use of questionnaires. This study targeted 100 respondents who are Safaricom Ltd staff serving in various customer centres based in Nairobi City. Data was analysed using descriptive and inferential statistics. The study found that there is a relationship between bonus rewards system and customer retention in Safaricom ltd. The study concludes that rewards can and do build customers’ retention.