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Service reliability and its impact on customer loyalty among communications companies in Uganda. A case study of Airtel Uganda Limited (issue 2)

Service reliability refers to the ability of communications service providers to consistently provide their services to
customers without any disruptions or failures. This study aims to examine the impact of service reliability on customer
loyalty among leading communications companies in Uganda, using Airtel Uganda Limited as a case study. Airtel
Uganda is one of the largest mobile network operators in the country, competing against other major players like MTN
and Africell to attract and retain customers. However, as customer expectations for high-quality and uninterrupted
service continue rising in the digital era, communications providers must ensure optimum network performance and
minimize service downtime to satisfy subscribers and encourage continued patronage. Through a combination of
quantitative and qualitative research approaches involving questionnaires, interviews and secondary data collection,
this investigation seeks to determine the relationship between Airtel's network uptime and downtime records over the
past three years and metrics like subscriber retention rates, churn levels, complaint volumes and brand perception
scores. The research also gauges customer satisfaction with Airtel's network coverage footprint, data speeds, call
connectivity rates and responsiveness to outage situations through their feedback. By identifying key aspects of service
that most impact customer satisfaction and switching decisions, the study aims to provide Airtel with actionable
recommendations on network optimization strategies, service disruption mitigation plans and loyalty programs that
can help strengthen bonds with clients and drive sustained growth in this intensely competitive industry space.
Findings revealed that there was a weak positive correlation (r=.250) between service reliability and customer loyalty.
Since the correlation does not indicate causal effect in terms of the percentage variance in the dependent variable
caused by the independent variable, a coefficient of determination (rho2=.063), which was a square of the correlation
coefficient was computed. The coefficient of determination was expressed into percentage to determine the effect of
service reliability on customer loyalty. This revealed that service reliability accounted for 6.3% of variance in customer
loyalty. Introducing well-publicized service level guarantees and compensation policies can assist in rebuilding
reputational trust after past disruptions while expanding self-care digital channels may alleviate overwhelmed support
infrastructure stresses.

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