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.