What is it about?
User’s intention to continue to stay with a particular firm/product is very key to firm’s future growth and survival, especially in industries where it is easy to switch from provider to another with minimal cost. As mobile phone penetration increases, one key innovations in the telecommunication sector is the creation of a technology-enabled service which enables users to use mobile phones to perform financial transactions which hitherto was exclusive to traditional banks, called mobile money. Therefore, the purpose of this study was to examine the effects of mobile money usage in ensuring customer continue to stay with a service provider, thereby reducing customer churn.
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Why is it important?
The paper has demonstrated that active usage of mobile money services is very crucial in locking-in customers, that will make them more resistance to churn. In specific terms, telecommunication firms may prevent customer churn by pursuing a combined strategies aimed at introducing mobile money products/services that are very relevant to the everyday lives and needs of their customers and ensuring that they become active users of mobile money. The mediation effect of active usage of mobile money in the relationship between satisfaction and trust on customer continuance was also confirmed, suggesting that telecommunication firms may profit from pursuing a combined strategy aimed at ensuring active usage of mobile money, satisfaction and trust
Perspectives
The advent of mobile money solution has been game changer in many emerging markets financial services industry and I hope this article will further stimulate interest among academic and practitioners’ communities around the world in appreciating ways through which mobile money can be sustained and fully harnessed. I believe that the essential value of technology-enabled service such as mobile money is fully realized not when it is adopted but rather when there is continuous usage. More than anything else, and if nothing else, I hope you find this article setting the pace for intellectual discourse on mobile money.
Mr Eric Yeboah-Asiamah
University of Ghana
Read the Original
This page is a summary of: Preventing Customer Churn in the Mobile Telecommunication Industry: Is Mobile Money Usage the Missing Link?, Journal of African Business, February 2018, Taylor & Francis,
DOI: 10.1080/15228916.2018.1440462.
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