INFLUENCE OF CUSTOMER RELATIONAL MANAGEMENT PRACTICES ON CUSTOMER RETENTION

Abstract

Relationship marketing is concerned about building customer satisfaction by providing value to all the parties

involved in the relational exchanges (Peng & Wang, 2006). Despite tremendous growth, telecommunication

industry has continued to record an increase in the number of unsatisfied subscribers. The purpose of this study

was to investigate the effects of customer relationship management practices on customer retention on mo

bile phone users in public universities of western Kenya region. This study was guided by the social exchange

theory. In taking such a view of human social interactions, social exchange theory includes a number of key

assumptions for example; social exchange theory operates on the assumption that individuals are generally

rational and engage in calculations of costs and benefits in social exchanges. Explanatory research was utilized

in this study. The target population of this study was geographically located in Public Universities in Western

Kenya Region. A sample size of 250 respondents was drawn from the population. Primary data was collected

using a questionnaire. Data collected was analyzed by use of descriptive and inferential statistics. There was

need to use a multiple regression analysis so as to determine the effects of each of the variables on customer

satisfaction and customer retention. Statistical package for social sciences (SPSS) version 21 was used to ease

the analysis. Analyzed data were presented in tables. The results revealed that customer relationship practices

had significant effect on customer retention while network quality had negative relationship. The study recom

mends that service providers should identify critical Customer Relationship Management practices which can

help in creating sustainable relationship. The service providers should involve users in designing the appropriate

customer relationship management practices. The study provides new theoretical insight into factors influencing

customer retention. Future researchers may use other models such structural equations among others to test the

hypotheses