Influence of Brand Loyalty Programs on Customer Retention of MTN Nigeria Service Centres in Akwa Ibom State, Nigeria

This study examines the influence of brand loyalty programs on customer retention of MTN service centres in Akwa Ibom State (Eket and Uyo). In a highly competitive market, where customer churn is common and switching costs are low, telecommunication companies like MTN have implemented loyalty initiatives such as airtime bonuses, data gifts, and device discounts to retain existing customers. The study’s primary objective is to assess the effectiveness of these loyalty program components in fostering long-term customer commitment and reducing churn. The research adopts a descriptive survey design, with data collected from 380 respondents, as a sample size from a population of 1.2 million subscribers. Using descriptive statistics such as frequencies, percentages, mean, and standard deviation, the study analyzed respondents’ demographics and their perceptions of MTN’s loyalty programs. Inferential statistics, specifically multiple regression analysis, were employed to examine the impact of airtime bonuses, data gifts, and device discounts on customer retention. The results indicate that all three loyalty program components significantly influence retention, with data gifts showing the most substantial effect. The study contributes to the understanding of how tailored loyalty incentives can enhance customer retention in Nigeria’s telecommunication sector. It offers insights for MTN and other telecom operators to refine their loyalty strategies based on customer needs and preferences, ultimately improving customer satisfaction and reducing attrition rates. The findings also suggest avenues for future research, particularly exploring regional variations, service quality, and the financial impacts of loyalty programs.