| Abstract: | The research titled "Factors Influencing Customer Retention of Safaricom Ethiopia" aims to identify and analyze
the key factors that affect customer retention within Safaricom telecommunications Ethiopia. The study focuses
on several independent variables, including customer satisfaction, service charge, data privacy and security,
service coverage and accessibility, network reliability, and customer service, all of which are hypothesized to
have a positive relationship with customer retention. Conversely, the study finds that personalized service,
technological innovation, and data speed do not significantly impact customer retention. This research aims to
enhance understanding of customer retention factors in the telecommunications industry, with a focus on
Safaricom Telecom Ethiopia. The findings will help Safaricom retain more customers, improve service quality,
and refine its customer retention strategies. Additionally, the study provides policy guidance for Safaricom’s
management to address retention challenges and outperform competitors. Furthermore, it serves as a reference
for industry best practices, offering broader implications for enhancing customer loyalty and satisfaction in the
telecom sector.
Methodologically, the researcher employed a descriptive and explanatory research design, utilizing quantitative
research approaches to provide a comprehensive analysis. Data were collected through a structured
questionnaire, distributed to a sample size of 399 customers, with 379 responses correctly filled and used for
analysis. Primary data was the main source of information. The findings of this study offer valuable insights for
Safaricom Ethiopia and other telecommunication companies aiming to enhance customer retention by focusing
on the identified significant factors. The analysis revealed that customer satisfaction, service coverage and
accessibility, network reliability, data privacy and security, customer service, and service charge significantly
impact customer retention. These factors were found to play crucial roles in determining whether customers
continue to use Safaricom Ethiopia's services. In contrast, data speed, personalized service, and technological
innovation did not show a significant effect on customer retention. Recommendations include implementing
regular customer feedback systems, investing in network infrastructure and security measures, providing
extensive training for customer service representatives, adopting competitive pricing strategies, and developing
customer loyalty programs. By focusing on these areas, Safaricom Ethiopia can enhance customer loyalty and
reduce churn rates. |
