MJAMR

Customers Retention And It’s Impact On Employee Productivity Of Kampala Central Division

Kabanda Richard, Irumba Alex


Abstract

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.

Keywords

Customers Retention management And Employee Productivity
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kabanda Richard & Irumba Alex (2024). Customers Retention And It’s Impact On Employee Productivity Of Kampala Central Division. Metropolitan Journal of Academic Multidisciplinary Research, 3(2). https://journals.miu.ac.ug/pages/article.php?article_id=1702

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