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Customers Retention And It’s Impact On Employee Productivity Of Kampala Central Division (issue 2)

Retaining existing customers is crucial for long-term business success, especially in competitive industries. However,
sustaining customer loyalty poses challenges that directly impact organizational performance metrics. In Uganda's
telecommunications sector, MTN has maintained market leadership but experiences quarterly churn levels that
threaten growth if unchecked. This problem is pronounced within MTN's Kampala Central division covering the
capital city where customer retention averages a troublesome 8-10% quarterly attrition against the national 5-6%
average. Statistics evidence the severity of the issue for Kampala Central specifically handling over 4.5 million
subscribers or 35% of MTN's national footprint. The elevated churn translates to excessive losses exceeding 150,000
abandoning customers per quarter valued at more than 10 billion Ugandan shillings in revenue alone from this zone.
Moreover, productivity indicators among the division's 900 frontline workforce reflects declining trends during
periods of higher attrition. On average, sales representatives managed 15% fewer transactions while customer care
agents tackled 5-10% fewer queries per shift. Given these circumstances, this study aimed to conduct an in-depth
mixed methods exploration of the relationship between customer retention levels and employee productivity within
Kampala Central between January to June 2021. Both quantitative analysis of four years of churn, productivity and
operational performance data from internal systems alongside annual regulatory reports and qualitative focus group
discussions and exit surveys amongst customers and staff were undertaken. Descriptive and inferential statistics
facilitated variable exploration while thematic coding triangulated evidence. Findings validated inconsistent service
quality, technical disruptions, limited offerings and sluggish complaint handling as primary drivers of high churn
undermining staff operations. Rigorous conclusions established clear linkages between retention volatility, financial
losses and diminished workforce productivity impacting stakeholders. Strategic recommendations center on network
enhancements, tailored products, enhanced staff capabilities and dedicated customer experience management critical
to optimize operations, jobs and prospects in this strategic locale.

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