Strategies Employed by Airtel Networks Kenya for Customer Retention

Abstract

The purpose of this study was to examine the strategies employed by Airtel Networks Kenya for customer retention. This research was guided by the Porters’ theory of competitive advantage and relationship marketing theory. It also adopted a case study research design where the target respondents comprised of 10 senior managers of the customer care, sales and marketing departments in Airtel Networks Kenya. The research also used interview guides to collect primary data in qualitative form from the identified 10 senior managers. The qualitative data collected from the interview guides was then analyzed using content analysis. The results revealed that customer retention strategies employed by Airtel Networks Kenya were multifaceted and mainly depend on their market position, customer segment, technological advancements and the regulatory guidelines. These strategies have positively contributed to customer lifetime value, customer repurchase frequency and customer satisfaction in Airtel Networks Kenya. In addition, the identified strategies including cost leadership, differentiation, focus and marketing mix strategies were also found to have a positive effect on customer retention. It was also established that differentiation strategy was the more outstanding strategy that has been utilized by the company to meet customer needs, increase customer satisfaction and loyalty. The study concluded that Airtel Networks Kenya has to a great extent employed strategies tailored to specifically retain their customers however, there are still some challenges that the company experience in their efforts to ensure efficiency and effectiveness of the strategies they implement to retain their customers. Therefore, this research recommended that the management of Airtel Networks Kenya should foster an innovation culture within the organization to continuously differentiate services and products in line with emerging technologies and customer demands. Additionally, marketing strategies should also be aligned with customer preferences identified through data analytics to ensure personalized and effective communication. Policymakers on the other hand, should advocate for policies that encourage fair competition while fostering innovate technologies and quality service provision within the telecommunication industry.