What is the issue?
It has often been observed that the telecom companies are trying hard to retain the customers in this cut-throat competition. The aspect may raise doubts regarding the strategies of the telecom companies as, they can always try to attract the new customers to endorse the companies (Atkinson, 2009). However, retaining the customers is more than that. It is a sign of healthy organisation. If the companies can retain their customers, the brand image automatically acquires new height. Attracting new customers does not become an issue then. Therefore, the issue of retaining the customers has gained enough prominence in this highly competitive world.
Why is it an issue?
The Indian telecom companies have a very large ground to play in as, the number of citizens sans any mobile connection is a significant one. Therefore, the companies have the chance to attract new customers too. However, retaining the existing customers is an important aspect to prove that the companies are in a healthy state. If the companies cannot retain their customers, attracting neer ones would also face severe challenges. Aaker & Jacobson (2010) opined that satisfying the customers with the service is the only criterion that can retain the customers. Therefore, the researcher has taken the issue as, the Indian telecom companies are suffering hugely for stiff competition. Switching cost is too low and therefore, the customers can always take the option of other service providers. This is severely challenging for the companies.
Why is it an issue now?
Recently, a report published by TRAI has revealed that the number of customers, who are using a connection for more than two years is coming down drastically (Babakus & Boller, 2011). This report therefore throws out an important question before the concerned people regarding the actual reason of it. One of the positive factors may be that the number of options before the customers is increasing (Pezeshki, Mousavi & Grant, 2009). However, this also shows that the customers are not sticking to any one company. Therefore, retaining the customers has become one of the main problems for the Indian telecom companies.
What would this research shed light on?
The research would try to assess those factors that affect the aspect of retaining the customers in the Indian telecom sector. In addition, the paper aims to present different points of view of eminent scholars to understand the chosen topic lucidly. Therefore, the researcher would try to provide the suitable corrective measures that may be applied by the service providers to mitigate any crisis.
The issue of retaining the customers in the Indian telecom sector has arisen due to the continuous shifting of customer loyalty. Therefore, satisfying the service users is the only criterion to negate those factors affecting the aspect of customer loyalty.
The aim of the research is to assess those factors that affect customer loyalty in the telecom company, BSNL.
(Source: Created by author)
The chapter has thus provided the basic understanding of the chosen topic by presenting the aims, objectives and the research background. In addition, the research questions would go a long way to help the researcher to frame the research work in an appropriate manner.