Research Article Open Access

Customer Loyalty with Cellphone Network Service Providers: A Comparative Analysis between Early and Late Stage Customers in East London, South Africa

Abstract

The South African mobile telecommunications environment has become increasingly competitive, thus there is increased focus on acquiring and retaining loyal customers in order to facilitate repeat purchases, guarantee future revenues and shield the customer base from competitive activity. In the light of the aforementioned, this paper outlines how customer loyalty in the cellphone network service provider industry differ among early and late stage customers. Data collection for this study was conducted using two stage non-probability sampling together with convenience and quota sampling. An aggregate of 20 questionnaires were issued and were validated and analysed. Based on the results from the study, it is proposed that cellphone network service providers should find ways in which to arouse and delight early and late stage customers for example, use incentives like free data upon first month subscription for early customers and loyalty rewards benefits for late stage customers. This study provides rich insights for cellphone network service providers regarding aspects to focus on when targeting and servicing early and late stage customers.

Unami Mlilo and Tshepo Tlapana

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