IMPACT OF EMPLOYEE SATISFACTION ON CUSTOMER SATISFACTION
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Abstract
This research examined the relationship between staff satisfaction and customer satisfaction. There were three stated objectives: to examine the relationship between customer satisfaction and employee satisfaction, to investigate the relationship between employee satisfaction and financial performance that is mediated by customer satisfaction, and to comprehend the significance of employee satisfaction on customer satisfaction in Airtel Nigeria. A total of 77 replies were collected and authenticated from recruited participants, all of them were Airtel Nigeria, Lagos employees. Chi-Square statistical method was used to test the hypothesis (SPSS).
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Chapter one
Introduction
1.1Background of the study
Employees have a crucial role in determining the customer’s opinion of any firm, which they transmit in their thoughts via their behaviour and actions. Organizations invest vast sums of money in fostering consumer loyalty, but often overlook the importance of motivating employees to achieve their financial and nonfinancial objectives. Employees may play a crucial part in capturing the minds, thoughts, and emotions of consumers, keeping in mind the incredible challenge that firms are now facing. Since a result of globalization, rivalry among organizations has expanded dramatically, as enterprises are now not only exposed to competition with numerous stakeholders in the country, but also in worldwide competition. To better serve their consumers, businesses are investing a large amount in upgrading technology, refining new strategies/forms, and introducing new items. In order to compete effectively on the global market, businesses have hired qualified professionals and established new departments for the creation of innovative procedures. To get a competitive advantage in the marketplace, businesses consistently give clients limited-time offers that are better and more alluring. Various organizations simultaneously concentrate on their employees to achieve a competitive advantage. Technology, organizational structure, tactics, and processes of other successful firms may be replicated, however the workers who contribute to the success of a company cannot be readily removed.
These affirmations demonstrate that staff motivation is a crucial aspect in enhancing customer happiness. Both individual characteristics and the work environment impact employee motivation. Organizations may profit in several ways from employee happiness. Consistently, two-way discussions aid in creating employee perceptions and assist firms in understanding employee needs. In the administration business, staff happiness influences consumer satisfaction favorably. When workers interact with customers, their behavior has a greater impact on customer satisfaction than marketing activities or brand image creation. In marketing, one of the core concepts is customer happiness, which is not only a theoretically important aspect but also an important one in practice. Compared to the telecommunications business, establishing consumer loyalty in the administration industry is challenging because to direct human engagement with clients, which often results in unreliability and erratic service. In addition, they demonstrated that staff excitement is a major aspect of service quality that influences customer loyalty. In Nigeria, there are a significant number of Airtel Network customers. The contribution of the telecommunications sector to economic development has unquestionably contributed to economic expansion.
In a world of intense competition, client happiness is an essential aim for any business. Massad, Heckman, and Crowston (2004) also believe that the service offered by staff contributes to the development of a positive connection with customers, hence increasing their loyalty. According to Bruke, Graham, and Smith (2005), when a person purchases a certain service, the employee has a direct influence on the customer’s assessment of the quality of the transaction. In addition, depending on the specific circumstances, a dissatisfied customer may purchase services elsewhere and share their unfavorable experiences with others. Interestingly, a pleased consumer may generate favorable word-of-mouth and brand loyalty (Torres and Kline, 2006).
In a service context, customer happiness is affected by the interactions between consumers and personnel (Wansoo, 2009). In addition, the large gift check is contingent on the excellent service and great customer happiness (Hung, Huang and Chen, 2003). Using Airtel Nigeria as a case study, this research attempts to analyze the influence of staff happiness on customer satisfaction.
1.2 Statement of the Problem
There are significant benefits to striving to enhance the service/quality of a company. This is why companies invest so much time and money in training programs that educate employees on the specifics of interacting with consumers. However, what these organizations do not realize is that such attempts are often rehabilitative. Genuine changes in customer service begin with providing better service and support to workers, something that the majority of firms’ managers do not comprehend. This is the immense difficulty in Nigeria. It is thus impossible to maintain a loyal consumer base without loyal personnel.
1.3 Objectives of the Study
Using Airtel Nigeria as a case study, this research aims to analyze the effect of staff satisfaction on customer satisfaction. Specifically, the goals are:
I To investigate the connection between customer satisfaction and staff satisfaction.
ii) To examine the link between employee happiness and financial success, mediated through customer satisfaction
iii) To comprehend the effect of staff happiness on customer satisfaction at Airtel Nigeria.
1.5 Research Hypotheses
The researcher established the following research hypotheses for the effective completion of the study:
There is no correlation between client pleasure and staff happiness.
There is a correlation between consumer and staff happiness, as stated in Hypothesis 1.
H02: There is no link between staff happiness and financial success that is mediated by customer happiness.
H2: consumer satisfaction mediates the link between staff satisfaction and financial performance.
1.6 Significance of the Study
Training, motivation, and reward of employees not only increases customer satisfaction but also other aspects required in terms of quality and effectiveness of product organizations must have to focusing in such areas to improve product competency for higher customer retention and satisfaction, This study assists in instructing the U.S.
1.7 The Scope of the Study
This research is very important and has great potential in the telecommunications business to boost customer happiness by studying the relationship between staff contentment and customer satisfaction; it will also be useful to students and journalists in the near future. They may simply glean information from this research.
1.8 Limitations of the Study
Due to a lack of time and resources, as well as a limited sample size, it is extremely difficult to manage, and it is also difficult to get correct results, since some consumers are unable to provide their feedback accurately.
1.9 Definition of Terms
The following words were used over the process of conducting this research:
Employee Satisfaction: Employee Satisfaction may be described as the extent to which an employee is satisfied with his workplace, as shown by his Loyalty and Dedication to the company.
Customer Satisfaction: Customer Satisfaction may be described as the extent to which the customer is satisfied or agrees to buy the product and services again, as shown by the customer’s loyalty and commitment to the product and services supplied by the organization.
IMPACT OF EMPLOYEE SATISFACTION ON CUSTOMER SATISFACTION
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