The maritime sector plays an important role in economies across the globe. Ports in particular are the backbone of the economy of countries endowed with shorelines as they facilitate foreign trade through the importation and exportation of goods to and from their domestic markets. South Africa’s latest addition to its complimentary ports system, the Port of Ngqura, is positioned as a container transshipment hub and a gateway port to Africa with its world-class infrastructure and deep-water container berths at 18 metres, the deepest on the African continent. Ports, whose main mandate is the container commodity, struggle to retain customers as the container industry is a fickle one. As a result, the retention of transshipment container cargo customers remain a challenge for ports. In recent years, ports have to compete more aggressively for their participation in major logistics networks and these days, the ports of the same region are increasingly competing with each other. There are clusters of ports with the same type of supply located within a region competing with other clusters of ports in other regions. The main objective of this study was to propose a customer retention framework for the Port of Ngqura to be used as part of the marketing strategy to possibly retain customers, grow market share and to increase profits. The study focused on the effect of components such as value proposition, customer service quality, customer satisfaction, customer relationship management and customer loyalty on customer retention. After the exercise of testing statistical reliability, the researcher established that the measuring instrument for the component of value proposition was deemed unreliable and therefore, does not necessarily lead to customer retention for the Port of Ngqura. Nunnally (1978) recommends that instruments used in basic research have reliability of 0.70 or higher. The Cronbach Alpha score for the value proposition measuring scale was 0.41, which is below the recommended 0.70. The measuring instruments of the remaining four components of customer service quality, customer satisfaction, customer relationship management and customer loyalty as influencers of customer retention proved to be reliable due to the Cronbach Alpha score being above the recommended 0.70 for all four measuring instruments. In conclusion, this study showed the importance of customer retention and more importantly, how the mentioned reliable four components affect customer retention at the Port of Ngqura. Recommendations were presented by the author on how to integrate the components of customer retention into a retention framework that can contribute to the profitability of the port. The findings of this study led to the recommendation of the need for the Port of Ngqura to firstly, incorporate customer retention into overall marketing strategy and to thus be aggressive as customer relationship building is crucial in retaining customers and growing market share in today’s competitive port environment. Secondly, the port needs to segment its target customers, it is recommended that the target market be well defined, understood and segmented based on industry (shipping line, clearing and forwarding agency, fruit, automotive or wool) and amount of volumes and revenue brought to the Port of Ngqura. Thirdly, leadership involvement as at the strategic level of Transnet Group and Transnet National Ports Authority, executive leaders need to be involved in the implementation of customer retention for marketing of the port as they are the ones that have a high delegation of authority when it comes to decision making. It is also recommended that the measurement of success be clearly defined and linked to the objectives for the implementation of customer retention. The marketers and the Port of Ngqura, using customer relationship strategies, should devise ways of measuring loyalty to the port and the brand, the reputation of the port, service quality and customer satisfaction. Employee training is the most critical recommendation as they must be well trained and equipped to execute their duties, they must be knowledgeable about the maritime industry as well as the business of their customers, fully understand their customers’ needs and have customer empathy. Ports can also improve service quality by focusing on port and terminal efficiency by conducting benchmark studies with high ranked ports like the Port of Singapore as they are known for high levels of efficiency in the market. By improving service quality, the port will improve customer satisfaction and achieve customer loyalty and ultimately, retention.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:27440 |
| Date | January 2017 |
| Creators | Myoli, Chuma |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 131 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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