African Journal of
Marketing Management

  • Abbreviation: Afr. J. Mark. Manage.
  • Language: English
  • ISSN: 2141-2421
  • DOI: 10.5897/AJMM
  • Start Year: 2009
  • Published Articles: 145

Full Length Research Paper

Modelling telecom customer attrition using logistic regression

B. E. A. Oghojafor1, G. C. Mesike2*, C. I. Omoera1 and R. D. Bakare1
  1Department of Business Administration, University of Lagos, Lagos State, Nigeria. 2Department of Actuarial Science and Insurance, University of Lagos, Lagos State, Nigeria.
Email: [email protected]

  • Article Number - 856867E8075
  • Vol.4(3), pp. 110 - 117, March 2012
  •  Accepted: 24 February 2012
  •  Published: 31 March 2012

Abstract

 

The Nigeria telecom sector has experienced a major transformation in terms of growth, technological content, and market structure over the last decade as a result of policy and institutional reforms culminating to the liberalization of the sector and consequently, resulting in significant rise in competition. With the industry’s experience of an average of 41% annual churn rate and couple with the view that the cost of acquiring new customer is five times higher than maintaining an existing customer, customers retention is  now seen to be even more important than customer acquisition.  Therefore retaining customer has becomes a priority for most enterprise and there are compelling arguments for managers to carefully consider the factors that might increase customer’s retention rate. This study using logistic regression, therefore examine the effect of socio-economic factors on customer attrition by investigating the factors that influence subscribers churning one service provider for another.

 

Key words: Teledensity, customers’ retention, telecom, socio-economic factors.

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