Effect of Promotional Strategies on Customer Retention: A Case Study of MTN Telecommunication Company in Nigeria

Abstract

This study investigated how promotional activities impact on consumer retention in MTN telecommunication company in Nigeria. This study adopts descriptive survey design. The population of the study encompassed the customers of five subsidiaries MTN companies in Lagos, Nigeria. Through multistage sampling techniques, 280 respondents were drawn to participate in the study. The primary data were collected using a well-structured Likert scaled questionnaire. The Statistical Package for Social Sciences (SPSS: Version 25) was used to analyse the data collected. The regression analysis revealed that Media Advert (MA) (β=0.063, p=0.008), Direct marketing (DM) (β=0.309, p0.000), and personal selling (PS) (β=0.645, p=0.000) have significant positive effects on Consumer retention. Sales Promotion (SP) (β=-0.080, p=0.322) however, was found to have a negative but statistically insignificant impact on consumer retention. The study concluded that Media Advert (MA), Direct marketing (DM), and Personal Selling (PS) should be used in promotional activities for the purpose of retaining customers in MTN Nigeria Ltd. As for the Sales Promotion, contrary to the expectation, it should not be considered as it has negative, though insignificant value. The study therefore recommended that the management of MTN should invest more in the variables found significant in its promotional strategies in order to improve on their customer retention.