The Loyalty Effect:The Relationship between Customer Loyalty and Sales

A customer loyalty program that rewards subscribers with valuable and appropriate bonus awards can be a vital component of a successful customer retention and re-purchase programme. It can also stimulate revenues by encouraging customers to use and spend more on their services. This study was conducted to assess how loyalty programmes affect sales in telecommunication companies, using mobile telecommunication network, MTN Ghana as a case study. Using the survey research method, the researcher collected data from respondents in the Accra Metropolis. Data on the socio-economic characteristics of respondents was analyzed using descriptive statistics, frequencies and percentages. The Statistical Package for Social Sciences (SPSS) was used to process the data set. The researcher discovered that loyalty programs have no effect on the decision of majority of customers to continue using the network as 50% disagree and 16% strongly disagree with the assertion that they will continue to purchase MTN products mainly due to the loyalty programs whiles 26% agreed to the statement. Their decision to continue purchasing could therefore be attributed to factors other than loyalty programmes.