Customer Loyalty in the Swedish Telecommunication Industry: A case study at Telia
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
There are two main purposes of this thesis. The first one is to get a better understanding of the aspects affecting customers’ loyalty in the telecommunication industry, in the context of when customers are using the services. The second purpose is to look into what the case company gains by having customers that are more loyal, where the degree of loyalty is measured by the Net Promoter Score metric.
The methodology used to carry out the research is a case study with an approach that is both qualitative and quantitative. Where the quantitative approach has the largest share. Two datasets have been used in this thesis, one collected by the authors by sending out surveys and one collected beforehand at the case company. The survey created by the authors aim to let customers assess the satisfaction level with technical and non-technical aspects that can affect loyalty. The dataset that is already collected by the case company document the initial degree of loyalty of customers along with the revenue per customers over a period of years. The two datasets are used for the two different research purposes respectively. The statistical analysis for the data is conducted using the statistical tool Minitab.
The findings for the first purpose are that our survey questions can be split into three categories using factor analysis. The categories are Perceived mobile multimedia quality, Perceived broadband multimedia quality and General perceptions. The first two categories are driving customer loyalty and the third category are indicators of customer loyalty. For the second purpose the findings are that the case company has different gains of more loyal customers depending on if the customers are either mobile or broadband customers. More loyal mobile customers stay longer as customers and also buy more. More loyal broadband customers only stay longer as customers.
The practical implications of the findings are that the case company has to think of customer loyalty in new ways. There are more indicators of if a customer is loyal than the Net Promoter Score, these are for example customer satisfaction, perceived brand value, perceived overall quality, perceived customization etc. Therefore it would be better to measure customer loyalty not only with the Net Promoter Score Metric but to pick out 2-3 indicators to ask the customer and create an average index for all the questions that can represent the customers’ loyalty. Furthermore there are not a specific variable that drives customer loyalty more or less, several aspects are acting together in two high level groups. Another practical implication is that the gains of more loyal customers are higher for mobile customers since they buy more from the case company and stay longer as customers. However, for broadband customers, they only stay longer. Therefore the Net Promoter Score is not as useful to track for broadband customers. Either the broadband customers should have more opportunities to buy more or another metric should be used for broadband customers.
Place, publisher, year, edition, pages
2015. , 56 p.
Net Promoter Score, loyalty, satisfaction, retention, mobile services, broadband services, multimedia streaming.
Other Engineering and Technologies not elsewhere specified
IdentifiersURN: urn:nbn:se:liu:diva-119928ISRN: LIU-IEI-TEK-A—15/02329—SEOAI: oai:DiVA.org:liu-119928DiVA: diva2:838546
Subject / course
Langstrand, Jostein, Director of Studies for Quality Technology and Management at Linköping University
Bonnie Poksinska, Bozena, Researcher in for Quality Technology and Management at Linköping University