In South Africa’s highly competitive telecommunications market, keeping customers has become as important as attracting new ones. With consumers able to move between network providers relatively easily, telecommunications companies face growing pressure to understand what makes customers stay.
A dissertation study by Tom Sean Davids, titled Investigating the Determinants of Customer Retention among MTN Subscribers in Gauteng Province, South Africa, examined this question by focusing on four potential drivers of customer retention: customer satisfaction, service quality, relational commitment and trust. The research found that customer satisfaction and relational commitment were significant predictors of retention, while service quality and trust did not have statistically significant direct effects on whether customers remained with MTN.
The findings point to an important shift in how telecommunications companies should think about customer loyalty. Retention may depend less on functional service attributes alone and more on the quality of the relationship and experience customers develop with their service provider.
A Competitive Telecommunications Market
South Africa’s telecommunications sector operates in an environment characterised by intense competition, low switching costs and increasingly sophisticated customer expectations. Customers can choose between several providers and are exposed to competing prices, promotions, products and digital services.
The study argues that these conditions make customer retention a strategic priority. While MTN continues to maintain a strong position in the market, customer churn, service expectations and the demand for better engagement remain important challenges.
The research therefore set out to establish which factors most strongly influence the decision of MTN subscribers in Gauteng to remain with the network.
The Research Approach
The study adopted a quantitative research approach. Data was collected through a structured Likert-scale questionnaire from MTN subscribers in Gauteng and analysed using Confirmatory Factor Analysis and Covariance-Based Structural Equation Modelling.
The research focused specifically on four determinants: customer satisfaction, service quality, relational commitment and trust. The study was geographically limited to Gauteng and to adult MTN subscribers who participated voluntarily through digital platforms.
This means that the findings should be interpreted within the context of the study and should not automatically be generalised to all MTN customers across South Africa.
Customer Satisfaction Matters
One of the clearest findings is the relationship between customer satisfaction and retention.
The study found that customer satisfaction has a positive and statistically significant effect on customer retention, with a reported path coefficient of β = 0.311 and p = 0.001. In practical terms, customers who have more positive experiences with MTN are more likely to continue using its services.
This suggests that satisfaction remains an important foundation of loyalty. Customers who feel that their needs are being met are more likely to remain with the provider, show lower intentions to churn and continue engaging with the brand.
For MTN, this means customer satisfaction cannot be treated simply as a measurement exercise. It needs to become an operational priority, supported by responsive customer service, effective problem resolution and reliable experiences.
Relationship Commitment Is the Strongest Driver
Perhaps the most significant finding is the role of relational commitment.
The study identifies relational commitment as the strongest predictor of customer retention among MTN subscribers in Gauteng. This suggests that customers are not retained simply because a network provides a functional service. They are also influenced by the relationship they develop with the provider.
This has important implications for telecommunications companies. Where products and services are increasingly similar across networks, relationships can become a significant source of differentiation.
The study recommends personalised interactions, loyalty programmes, recognition of long-term customers and targeted benefits. It also proposes stronger use of customer relationship management systems to segment customers, understand their behaviour and identify those who may be at risk of leaving.
In other words, customers should not feel that they are simply account numbers. They should feel recognised, understood and valued.
Service Quality Is a Baseline Expectation
Interestingly, service quality did not demonstrate a statistically significant direct relationship with customer retention in the study.
This does not mean that service quality is unimportant. Rather, the study suggests that in a mature and highly competitive telecommunications market, customers may regard reliable service as a basic expectation rather than something that necessarily creates loyalty.
Customers expect their network to work. They expect reasonable reliability, responsiveness and accessibility. These factors may therefore contribute to satisfaction without independently determining whether customers stay.
The practical implication is that companies cannot rely on technical performance alone to create lasting loyalty.
Trust Still Matters, Even If It Was Not a Direct Predictor
Trust was also not found to have a statistically significant direct effect on customer retention.
However, the research cautions against interpreting this to mean that trust is irrelevant. Trust remains important to the health of customer relationships, particularly in an increasingly digital service environment.
The study recommends greater transparency around billing, data usage, tariffs, network maintenance and customer information. It also proposes stronger accountability and clearer communication as mechanisms for strengthening credibility.
The implication is subtle but important: trust may not independently determine whether a customer stays, but poor transparency and a breakdown in trust can contribute to dissatisfaction and ultimately weaken the relationship.
The TIPS Perspective
The research also applies the DaVinci TIPS Framework, which considers Technology, Innovation, People and Systems.
Through this lens, customer retention cannot be attributed to one isolated factor. Technology supports reliable digital services, innovation creates new ways of engaging customers, people shape the customer relationship, while systems ensure that these elements work together.
The study therefore presents retention as an organisational outcome that requires coordination between technology, people, innovation and systems.
This broader perspective moves the discussion away from viewing retention solely as a marketing responsibility. Customer retention involves the entire organisation.
What Should MTN Do Differently?
The research proposes a shift from a largely transactional approach to a relationship-oriented retention strategy.
1. Focus on Customer Satisfaction
MTN should make customer satisfaction a key performance indicator and monitor it continuously. Real-time response systems, clear problem-resolution processes and service-level accountability can help improve customer experiences.
The study also recommends better network monitoring and fault detection, allowing problems to be identified and addressed before they significantly affect customers.
2. Strengthen Relationship Management
MTN should formalise relationship management and customer engagement programmes through personalisation, loyalty initiatives and targeted communication.
Long-term customers could be recognised through tailored incentives, additional benefits, early upgrades or priority services. Personalised communication can also ensure that offers and information are aligned with individual customer behaviour and preferences.
3. Use Data to Predict Churn
Data should become central to retention.
By analysing usage patterns, customer interactions and feedback, MTN can identify customers showing early signs of dissatisfaction or disengagement. This creates an opportunity to intervene before the customer leaves.
The research recommends continuous feedback mechanisms, targeted surveys and real-time engagement platforms as part of this approach.
4. Maintain Service Quality and Invest in People
Although service quality was not found to be a direct predictor of retention, the study maintains that reliable service remains essential.
MTN should continue investing in technology, automation, network infrastructure and employee capabilities. Frontline employees should also be evaluated against customer experience measures such as response time, resolution turnaround and the ability to resolve problems without unnecessary escalation.
5. Communicate Transparently
The study recommends stronger communication around billing, tariffs, data usage, network performance and customer data.
Transparent communication can help prevent avoidable dissatisfaction and strengthen the credibility of the relationship between the customer and the organisation.
A Shift from Transactions to Relationships
The central lesson from the research is that customer retention cannot be reduced to network performance, pricing or promotional offers.
For MTN subscribers in Gauteng, the evidence points more strongly towards satisfaction and the strength of the customer relationship.
The study’s statistical model explained approximately 83.3% of the variance in customer retention through the four variables examined, with satisfaction and relational commitment emerging as the primary drivers.
This provides a strong argument for telecommunications companies to rethink retention as an organisation-wide responsibility. Technology and service quality remain necessary, but the customer experience is shaped by what happens around the technology: how customers are treated, how quickly their problems are resolved, how well companies understand them and whether they feel valued.
Ultimately, retaining customers is about creating reasons for people to stay.
In a market where competitors can offer similar products, the organisation that understands its customers, responds to them and builds meaningful relationships may have the stronger advantage.
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