Effectiveness of customer retention strategies in managing customer attrition in the airline industry in Zimbabwe

Abstract

The research which was undertaken from January to April 2014 looked at the effectiveness of customer retention strategies in managing customer attrition in the airline industry in Zimbabwe. The main purpose of this study is to assess the effects of customer retention strategies; loyalty programs, customer service, service recovery and promise fulfillment. Literature review was carried out on the effects of customer retention strategies on repeat purchase; the influence of service recovery on building customer loyalty and the effects of promise fulfillment on customer satisfaction as discussed by different authors, to find similarities and differences from different authors who studied on customer retention variables and in this study major authors were Gronroos (2008), Jobber (2004) and Zeithaml (2003). Positivist or Post-positivism approach and both descriptive and exploratory research design were adopted which allows the gathering of data and description of events through organizing, tabulating, depicting and describing the data gathered. Simple random sampling, stratified, and convenience sampling were used to select the respondents of which the procedures give each unit of the population an equal chance of being picked as well as allowing flexibility on the part of the researcher to use readily available participants. A sample size of 200 customers and 40 employees was used. Micro-soft Excel was used to analyze data and presentations were done in the form of table, bar-graphs, line graphs and pie-charts. Qualitative information was discussed to reflect the views of the respondents on the effectiveness of customer retention strategies in managing customer attrition in the airline industry. The major findings are that the customer retention strategies if fully implemented results in effective retention of customers as customers want airlines to provide efficient frequent flyer programs, practice service recovery and fulfill the promises made to customers, through reliable schedules and lucrative in-flight services as well as the need to settle claims on time. There is need for airlines in the industry to provide the greatest customer service since most of its customers are educated and knowledgeable and know exactly their expectations from service providers.