Customer retention strategies used by Internet service providers in Kenya
Abstract
Fast-changing global business environment has resulted in organisations
having to change their business strategies and processes so as to remain competitive. As
organizations try to explore new markets and expand their business operations they are
faced with challenges posed by new entrants in the market who are deploying more
efficient technologies hence the need for organization to try and retain existing customer
base. The study was to determine the customer retention strategies used by internet
service providers in Kenya.
This was a census study that was to determine the customer retention strategies used by
internet service providers registered by the Communication Commission of Kenya (CCK)
as per July 2006. According to the CCK statistic of July 2006 there are 50 registered
Internet Service providers in Kenya.
A structured questionnaire was used to collected primary data and descriptive statistics
was used to analyze the data collected. In part 1 of the questionnaire data was analyzed
using frequency distribution and percentages. Data in part II of the questionnaire was
analyzed using mean score and standard deviation to determine the extent of use of
customer retention strategies. Out of 50 registered internet service providers only 35 were
found to be operational. Out of 35 questionnaires sent only 27 responded thus the
response rate was 77%.
From the findings it was established that internet servi~'provider tried to retain
customers through provision of quality service, commitment to customer satisfaction,
integration of customer satisfaction in a firm's goal and vision, being responsive to
customer complaints, having a highand continuous level of interaction with customer
Keeping a record of company's loyal customers and having an efficient and effective
complaint handling. It was concluded that service quality is the most important factor in
retaining customers ,although also other strategies such as customer satisfaction,
customer loyalty and complaint handling systems seems to playa significant role in
retaining customers.
The researcher experienced problems on finding decisions makers some of the firms and
some of the firms registered as Internet Service providers were operating as internet
cyber cafe whose operation environment and business scope if different from internet
service providers. It was recommended that that Internet service providers need to put in
place practises that ensure customer retention in order to survive in the competitive
business environment. A similar study can be carried out in the service industry.
Sponsorhip
The University of NairobiPublisher
School of Business ( SOB )