Effect of Sales Promotion and Relationship Marketing on Customers’ Retention in the Telecommunication Industry in Accra, Ghana

Abstract:

The study examines the effect of sales promotion and relationship marketing on customers’ retention in the telecommunication industry in Accra, Ghana. Convenience sampling technique was used to gather data form a sample of 150 customers of telecommunication firms in Accra, Ghana, using structured interview guide and data analyses carried out using SPSS version 22. The findings of the study showed bonuses as the most favourably, sweepstakes and contest as favorable, price discounts as less favorable and sample as the least favorable sales promotion method(s) used by telecommunication firms in Accra, Ghana, to retain customers. Also, the study revealed a moderate but significant relationship between sales promotion and customers’ retention. Based on these findings, it was recommended that the use of bonuses, sweepstakes and contest as methods of sales promotion should be encouraged since its potency in influencing retention is high whist reducing the use of price discount and avoiding the use of sample since its retention capability is not realized in the industry. Additionally, the study recommends telecommunication firms in Accra, Ghana, to continue the use of sales promotion in order to keep retaining customers but caution its abuse since it has the propensity of brand damage.