Employee Engagement and Customer Satisfaction

Chapter One

Introduction

This research projects will address a variety of factors as concerns employee customer relationship that leads to the eventual satisfaction of both the employee and the customer. While this relationship exists in almost all aspects and categories of business conduction, the mutual benefits gained by both these parties due to adequate employee engagement is yet to be exhaustively studied. This gives a lee way for the topic of study “An analysis of the relationship between employee engagement and customer satisfaction.” Among the contents of this section include an explanation of different terminologies which enable the sensibility of the project. It also contains a background section which critically analyses the various ways of employee engagement relevant to enabling customer satisfaction in the context of marketing and sales promotion. The background study will further highlight the link between organization resources in enabling employee engagement and subsequently leading to the improvement of customer experience and satisfaction. Factors that affect employee engagement including age, other co workers, gender and many more will also be discussed in the context of enabling the improvement of customer satisfaction. Further the chapter will outline the problem statement which is the determination of the link between employee engagement and customer satisfaction within the context of business conduction. The chapter will further highlight the main Aim and objectives, both specific and general of the study, offering a justification for the reasons of taking up the study and eventually highlighting the conceptual frame work with which the study will be entirely conducted.

Definition of Key Terminologies

Business includes a wide scope of studies with multiple terminologies that may be understandable differently in various contexts; however in the context of this study a number of these terminologies will be used to identify certain specific ideas as highlighted:

Employee engagement – Nolinske (2018) describes engaged employees as employees who are fully immersed in their work and show a considerable enthusiasm about the work they do. Employee engagement refers to the state of full involvement of employees within a business venture or organization. It is the emotional as well as physical commitment an employee has towards the organization they work for and their goals and objectives. It includes employees having full knowledge about the various aspects of the business organization they work for including the various resources available for their utilization, the job description with which they feel suits their particular set of skills as well as having the ability to fully immerse themselves in their roles within the business venture so as to enable their full utility within the business. Employee engagement eventually leads to employee satisfaction which is a pre requisite for customer satisfaction.

Customer Satisfaction- Lou and Homburg (2008) describe customer satisfaction as a measurement for the quantification of the degree to which a customer is happy with the products, services and experience relayed to them by different organizations. It highlights how individual needs as well as responses and feedback received by a business organization are collaborated to ensure the delivery of customer expectations. Customer satisfaction is the ultimate goal of almost all profit oriented businesses as the company or organization is only as successful as the number of loyal customers it has. Loyalty on customers is directly expressed by the level of satisfaction they derive from a product or service offered by an organization or the experience they receive from services by employees. An excelling business has to be able to device ways of measuring the satisfaction of their customers in order to maintain a competitive advantage over their prospective competitors

Customer Loyalty- despite the business environment being based on numbers reflecting statistics such as profits, turnover and capital, the description of customer loyalty stems directly from their satisfaction and as such it is directly related to their emotional responses towards an organizations products and services. According to Souko and Filho (2008) customer loyalty arises from consistency expressed by an organization towards its customers in terms of positive emotional experiences, physical attributes based satisfaction and the perceived value of an experience which includes the various products and services delivered by the organization. It loosely refers to the trust and belief consumers place upon an organization regarding the services and products they provide stemming from the positive impact and satisfaction the customer has had in the experience of using these products.

Achievement of customer satisfaction is directly proportional to the effort placed upon the development and production of its products and services with the customer needs and desires at heart. Frequent satisfaction of a customer’ needs directly enhance and contributes to the building of customer loyalty. For an organization to be able to adequately develop customer loyalty which signifies their satisfaction however, the employees need to be overly engaged in the business activities run by the organization. As such employee engagement is directly related customer satisfaction.

Background of the Study

Various business publications and journals have extensively stressed the importance of employee engagement and the responsibility of organizations to creating conditions for meaningful expression of various employees in their work roles (Avery, McKay and Wilson, 2007). This is due to the importance attached to the employees as a conduit with which the business organization reach and impact customer satisfaction. while businesses are responsible for both their employees as well as customers, their access to their respective customers prop from the employees and as such development of enabling environment, including physical as well as psychological for the active engagement and participation of their employees is crucial in establishing the ripple effect that eventually leads back to the customers and enhances their satisfaction (Khan, 1990). Businesses have a range of ways with which they can develop the enabling environment for the proper and full engagement of their employees, some of which include legal means such as friendly legislations, codes and business requirements for the employees, provision of adequate resources for the capability of the employees to adequately and comfortably do their work which leads to their unparalleled engagement, as well as affording them adequate rest time such as paid leaves and holidays that enhance their motivation and rejuvenation for the eventual impact on their full engagement to the business goals and objectives (Little and Little, 2006). As advanced by Salanova, Agut and Peiro (2005), a link exists between resources provided by an organization for the utilization of their employees and the work engagement developed by the employees as well as their overall performance and consequent impact on customer loyalty which ensures customer satisfaction. This emphasizes that employee engagement is as much a product of the organization resource management as it is a product of individual employee involvement in the organizations business activities. The level of engagement the organization exhibits towards the satisfaction of their employees needs while within the work environment impact to their motivation and subsequently the increase in the level of employee engagement which positively impact customer satisfaction. Harter et al. (2002) further highlights that a range of individual factors related to the employees as well as situational factors have a hand in the development of employee engagement and subsequent customer satisfaction. Among the individual factors include employee Age, Gender, personal ambitions, perceived coworker age, level of involvement within the organization as well as the level of compensation. Among the situational factors include employee recognition, pay fairness, peer culture, organizational leadership, opportunities for promotion and development as well as strategic alignment of an employee’s duties and responsibilities within the organization in relation to the ultimate goals and objectives of the organization (Agrawal, 2015).

Improving employee engagement, subsequently improves customer satisfaction, however the organization as well as its employees can adequately engage in the improvement of their customer satisfaction not only through adequate provision of products and services that suit their customers’ needs and thereby satisfy their desires but also through marketing activities that seek to involve the customers and make them a part of the business process. Improving customer loyalty through their constant involvement in any products developed by the organization as well as the benefits they stand to derive from these products through sales and marketing highlights among the ways in which employee engagement relates to customer satisfaction (Bowen and Cheng, 2001). Constant knowledge of one’s customer and development of means of interaction and communication as well as rewarding customer loyalty highlights some of the other ways with which customer satisfaction is gained by employee engagement specifically within the field of marketing and sales.

Problem Statement

Customer satisfaction is paramount and a prerequisite to the success of a business, regardless of which product or services or field within which a business operates. Being able to satisfy ones’ customer ensures customer loyalty which can go a long way into establishing the popularity as well as the successful growth and development of a business. According to Ciotti (2018), on average loyal customers are worth up to ten times the values of their first purchase. Customer loyalty to a company or a business entity can only crop from the continued satisfaction derived from the product, service or experience a customer has with the employees of an organization. According to a business report published by America Express in 2011, three out of five customers confessed to their willingness in forfeiting their favorite brands in order to have better services and experience from an alternative brand. This report emphasizes the importance of good services which can only be provided by business employees towards the achievement of customer satisfaction and therefore leading to the retention of the customers as loyal customers. Further a report on customer experience Impact drawn in 2010 by RightNow, a business research organization as highlighted by Bloemer and Lemmink (2010), revealed that 9 out of 10 American customers are willing to spend more with other brands and companies other than their previously favorite ones if they believe the new companies provide excellent services. These reports highlight that the ultimate measure of customer satisfaction is in the services and experiences the customers derive from the transactions rather than the actual products they buy. These services are provided by the employees whose commitment in being able to provide them depends on a range of factors including emotional tranquility and satisfaction gained from work engagement. The ability to deliver immaculate services and stir positive experiences with ones customers or produce quality products that represent a company’s brand and are likely to repeatedly satisfy customers needs and desires, arises from the commitment and honesty with which an employee engages in implementing their duties within a business organization. Employee engagement not only depends on business resources provided by the business organization and the motivation of remuneration in terms of wages or monthly compensations but also from emotional stability of the employee which highlights their ability to socially interact with the customer in a manner that enhances the customers experience and improves their satisfaction and loyalty for the brand.

This research study therefore aims to evaluate the relationship that exists between employee engagement and customer satisfaction. In so doing, the various factors that impact employee engagement as well as consumer satisfaction will be critically studied, as well as the connection between these factors that leads to their interdependence.

Research Aims and Objectives

Research Aim

A wide range of factors including the business structure and management adopted as well as situational and personal factors exist and directly impact on employee engagement to their work within a business organization. Subsequently employee engagement impacts greatly to the level of consumer satisfaction and loyalty to the brand. This study aims to evaluate the various factors that impact employee engagement as well as the relationship between adequate employee engagement and customer satisfaction and loyalty. In so doing the various ways in which consumer satisfaction can be enhanced by employee engagement as well as other related factors will be critically analyzed. To enhance the achievement of the aims of this study the problem will be separated into specific objectives that the researcher will embark on studying using both secondary and primary resources. These objectives include:

Research Objectives

General objective

The general objective of the study is to evaluate the relationship between employee engagement and customer satisfaction

Specific objectives

The general objective is broken down into specific objectives which include

To evaluate the various factors that impact employee engagement.

To evaluate the aspect of customer satisfaction and the various factors that promotes it.

To evaluate the relationship between the various factors that impact both employee engagement and customer satisfaction.

Research Questions

What are the factors that impact on employee engagement?

What is customer satisfaction and which specific factors promote this concept?

What is the relationship between employee engagement and customer satisfaction?

Conceptual Framework

The conceptual framework highlights a diagram utilized by the researcher in guiding their study through being able to link the various variables under study and highlight how they affect each other in the course of the study leading to the development of a viable conclusion and recommendation. It highlights a diagrammatic representation of the concept of study representing the flow of ideas that eventually highlights the relationship between the dependent and independent variables and eventually answers the research questions. Customer satisfaction in this context represents the dependent variable which is affected by the independent variable which is employee engagement. However there exist other variables which impact on both the dependent and independent variables such as employee satisfaction, situational and individual factors which impacts on the level of employee engagement as well as a range of other factors which impact on both employee engagement and the eventual customer satisfaction, all of which are critically analyzed within the literature review section with the use of secondary data as well as primary data in the attempt to establish the relationship within these variables.

The conceptual framework expressed in the figure above (Figure 1.1) highlights thereby that both the variables under study have external factors that affect them despite the dependence of customer satisfaction to the level of employee engagement. This highlights the entire scope of study which is key and crucial in the development of the review as well as primary data collection process and ultimately highlights the guideline to being able to realize the fundamental aspects of the study.

Justification of the research

A wide range of research has been conducted towards the effect of employee engagement highlighting the various factors that impact on employee engagement and the suitability of the business environment and work place. Further substantial literature exist supporting the importance of customer satisfaction and the various benefits customer loyalty may bring upon a business brand as well as means of improving both of these variables substantially. However despite the knowledge that customer satisfaction is derived from the ways and methodologies of business conduction applied by a business organization the role in which employees play in encouraging and enabling customer satisfaction and eventual loyalty has yet to be effectively analyzed. The various advantages that can be derived from maximum and quality engagement of employees in their work especially within the field of sales and marketing and the consequential impact that is extended to the customers to enable their satisfaction thereby highlighting the relationship between these two concepts has yet to be exhaustively reported on and as such a gap of knowledge exists that effectively prompts and justifies the undertaking of this research study. Further the findings and outcomes of the study are bound to shed light on the importance of customer satisfaction to the business, including enhancement of customer loyalty and the impact of a company’s revenue and sales which eventually results to an exponential growth and development of the company. This research highlights the importance of employees within a business as well as the importance of ensuring their full and unwavering engagement as well as loyalty to their work and the brands they represent.

Summary

The chapter in summary highlights the aim and objectives of the study, representing a background information and problem statement to highlight the direction of the research study and its significance within the real world. The chapter further justifies why the conduction of the research is important towards the improvement of the existing body of knowledge and its potential utility within the real business environment. The next chapter highlights the existing literature as concerns a wider scope of the study to further support the objectives highlighted within this chapter.

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1. Introduction

This chapter reviews the available theoretical as well as scholarly academic information regarding the wider scope of the research. It will include an analysis of the concept of employee engagement with specific bias to the sales and marketing department, highlighting the various characteristic and factors that make up a potentially quality employee as well as the factors affecting employee engagement and ways that an individual and organization can improve employee engagement towards their work. Afterwards the literature will delve into customer satisfaction highlighting the concept and the various factors that impact on the level of satisfaction of the customers. Further the literature will also highlight ways in which customer satisfaction can be enhanced by a business brand and the various advantages to the brand that come with customer satisfaction including customer loyalty. Finally the literature will attempt to establish the relationship that exists within the two concepts of employee engagement and customer satisfaction emphasizing on the benefits that this relationship can afford a business brand in the long run.

2.2. Employee Engagement

The full engagement of employees is crucial in the success of any business activity or organization. This is due to the fact that full engagement of the employees signifies a fully functional Human resource system which ensures the ultimate utility of its human resources. Bhavani, Sharavan and Arpitha (2015) define employee engagement as the level of commitment and involvement an employee has towards the organization they work for and its values. A fully engaged employee adequately and optimally utilizes the organization resources including the human resources represented by their coworkers to consistently aim at improving their performance within the organization and achieving the goals and objectives of the organization. Employee engagement not only ensures the growth and development of a business organization but it also affects the optimal usage of the organization resources and as such minimizes any wastage within the organization. Engaged employees display a considerable enthusiasm towards their work as well as faithfulness in the implementation of their duties within the organization. Nolinske (2018) highlights that engagement is both in the physical as well as psychological and emotional involvement in ones work a spectrum that requires an employee to be satisfied and competent in their role within the organization. Employee engagement however is affected by a range of factors all of which influences the eventual performance of these employees in a way or another. According to Chandani et al. (2016) these factors can be subdivided into three different categories: Individual factors, situational factors and organizational factors.

2.2.1. Individual Factors

Within the marketing and sales department, employees come in contact with potential customers and their commitment and engagement to the work they do highlights the eventual outcome of customer satisfaction as well as potential benefits to the organization. Employee engagement is the ultimate commitment of an employee towards the work they do within an organization and how they do it in order to maximize on the benefits of increased sales and revenue (Parent and Lovelace, 2015). As such employees in contact with customers have to fully engage themselves in their work to ensure they are effectively attending to the various customers to ensure a worthwhile experience that will further ensure the gaining of customer satisfaction. Among the individual factors that affect employee engagement as highlighted by McConnell (2011) include: attitude, health, personal traits as well as personal influence.

2.2.1.1. Attitude

According to a research conducted by Harvard Psychology as highlighted by McConnell (2011), only 25% of Job success is based on IQ while the other 75% is based on individual beliefs and connectedness to other people and the ability for individuals to manage stress related to work. These abilities inform an individual’s attitude towards their work. Employees can only be fully engaged in their works and thereby deliver successfully on their various fields due if they exhibit a positive attitude towards the work they do. Attitude according to Lazor (2014), impacts on an employee’s positivity or negativity regarding their work and as is a great determinant of whether or not an employee is able to fully engage in their work. Within the sales and marketing department, employees need to be fully engaged in service to their customers as well as develop a positive attitude of empathy and help in order to induce a great and lasting experience with the customers and enable their satisfaction and loyalty which leads to their retention and continuous benefits in terms of sales revenue to the business.

2.2.1.2. Health

Sickness and ill health is one of the impediments of productivity within a work place. An employee of considerably ill health cannot fully be engaged in their work at the work place due to discomfort as well as the fear of infecting other coworkers. While missing out on work days impacts on an individual employee’s consistency with their customers developing a remote working policy can be able to alleviate some of the negative impacts of sickness and ill health of employees within a work place. Healthy employees meanwhile are able to fully carry out their duties and enable adequate service for customers which eventually impacts on customer satisfaction and retention.

2.2.1.3. Personal Influence

Affording employees the freedom to device other ways of carrying out their work influences their capability of adequately doing their jobs and thereby being fully engaged in their work. May, Gilson and Harter (2004) highlight that if employees feel that they can strive to seek better ways of improving their roles within the organization for the efficiency of doing their work as well as the consequential benefit of the company then they are more likely to be fully engaged both psychologically and physically to their duties within the business organization. being able to innovate new ideas and the recognition of their efforts by the organization whether they succeed or fail gives them a sense of personal importance and influence within the company which eventually motivates them to be more engaged in their work seeking to find better ways of playing their roles. This also means better ways of satisfying customers and enabling their retention. However for the full engagement of an employee in whichever department they are in within a business organization a wide range of character traits and personal characteristics are key in defining their competence and the effectiveness of their engagement in the eventual outcome to the business. These traits and characteristics further highlight individual factors that impact on employee engagement subsequently enhances customer satisfaction.

2.2.1.4. Traits of effective Marketing and sales employees

Within the marketing and sales department employee engagement is solely to benefit the brand through inducing a consistently great customer experience that enhances customer satisfaction and ensures their loyalty is with the brand. Mayer and Greenberg (2006) highlights among the characteristics of such competent sales and marketing individuals to include five key qualities that are essential to the success of adequately conducting a sales process that satisfies both the brand and the customer: Ability to feel Empathy, focus, responsibility, optimism and Ego driven.

2.2.1.4.1. Ability to Feel Empathy

Empathy refers to the ability of an individual to identify and relate with another individual regarding a specific subject or concept (Fernandes, 2016). The ability of a sales individual or marketing agent to identify with their customer to feel what they feel and as such ensure the customer feels respected during the course of transaction. An employee within the sales and marketing departments ability to feel empathy enables them to establish a rapport with the customer, in this way they are able to identify the needs of the customer and effectively and efficiently attend to them thereby successfully making sales that impact on the business growth as well as establish a relationship of trust which ensures the customer is satisfied by the end of the transaction.

2.2.1.4.2 Focus

A person who is focused is internally driven to succeed in whatever activity they undertake by all means. They can identify ways with which to utilize the available resource for maximum benefit in whichever situation they are in. sales and marketing employees with focus can adequately utilize the organization resources not only to ensure the maximization of the company’s revenues through conducting numerous sales but also to establish a good relationship with the customers and ensure their satisfaction, consequently gaining their loyalty.

2.2.1.4.3. Responsibility

Employee engagement is all about ones commitment towards their work regardless of any shortcomings that they may experience along the way. Competent Marketing and sales employees take responsibility of ensuring the satisfaction of the customers in their desires for the interest of effecting growth and development for their company and business. Responsible employees’ main concern as highlighted by the Canadian Professional Sales Association (2010) includes diligently conducting their duties and playing their role within the business which amounts to employee engagement and subsequently enhances customer satisfaction.

2.2.1.4.4. Optimism

Singh et al (2015) highlights that optimism is one of the key traits for sales and marketing employees in their quest to attract and retain new customers. Optimistic sales individuals exhibit the quality of persistence which adequately highlights employee engagement. With persistence an employee is capable of developing techniques of improving customer satisfaction in the products they sale as well as the experiences the customers derive from the sales process and the product and services sold to them.

2.2.1.4.5. Ego Driven

While ego drive resembles optimism in the aspect that both traits induce qualities of persistence, ego drive specifically enhances persistence with the purpose of success. The concept of success within the sales and marketing department demands customer satisfaction and as such ego driven employees deliberately engage themselves in their duties and responsibilities as marketers with the available resources to induce customer satisfaction and loyalty for the ultimate success of the company. These traits of effective sales and marketing employees’ highlights some of the personal factors that influence employee engagement due to the desire for the business success and in the process effectively enhance customer satisfaction and loyalty.

2.2.2. Organizational Factors

The level of engagement of employees within an organization is also affected by factors induced by the organization itself. The ability of the organization to develop an enabling factor for the optimum functioning and working of its employees directly affect the ability of employees to be able to engage themselves fully in their duties within the organization. Kalliannan and Adjovu (2015) highlight that employee engagement is an engine in talent management that draws its resilience from the effectiveness of various environmental factors from within and outside an organization as well as organizational factors some of which include: the organization management, peer/organization culture as well as organizational legislations and code of conduct, strategic alignment and recognition as well as fairness in remuneration.

2.2.2.1. Management

Mansoor and Hassan (2016), advance that organization leadership within an organization sets the tone for the company culture. It is also responsible for inspiring and motivating its employees. The type of management an organization exhibits provides the space necessary for individuals to successfully indulge themselves in their work and be fully engaged for the successful outcome of employee satisfaction. Through the assembly of necessary resources, development of a conducive working environment as well as the development of fair remuneration processes, the organizational management provides an enabling environment for its employee to be adequately, effectively and efficiently engaged in their work within the workplace.

2.2.2.2. Organization Culture and Legislations

Organization culture refers to the unique values, beliefs and ideas that encompass and contribute to the unique social and psychological environment within an organization (Ginevicius and Vaitkunaite, 2006). These beliefs are shared within the organization by the employees and collectively influence the way individual take up their duties and work within an organization. With a proper organization culture that inspires commitment and hard work employees collectively and individually engage in their work with commitment and as such employee engagement is achieved. According to Bingol, Sener and Cevik (2013) organization culture not only impact on the individual employees’ commitment towards their work but also inspires a world view with which the organization is perceived from outside the organization. it defines the organization identity and the employees trustworthiness which subsequently impacts on the level of trust customers put in the organization. Organizations also develop a set of rules and codes of conduct that guide the behavior of the employees while at their place of work as well as outside the work environment. Most often these legislations and rules inspire commitment and the full engagement of employees to their works and the achievement of the organizations goals and objectives.

2.2.2.3. Recognition and Strategic Alignment

The ability for an organization to recognize hard working employees inspires hard work and more involvement of employees to the business activities which in turn enhance employee engagement all across the company. Despite the form of recognition applied by a business organization whether in form of awards and promotion or simple mentioning of heroic or exemplary acts within the course of businesses, the employees are inspire to know that any extra effort they put in their work will be effectively recognized. Recognition and applauding of employees therefore inspire more engagement of the employees in their work with the pursuit of merit as well as possible promotion or awards. Ruyle, Eichinger and De Meuse (2009) define Strategic Alignment as the prospect of employee duties and roles within an organization being in line with the business overall goals and objectives. Strategic alignment of employees regarding their various duties within the business has the effect of inspiring them to work harder and be more engaged in their work as they seek to produce substantial contributing towards the company goals and objectives. When employees know that their work is likely to have an impact in the entire organizations growth and development they are likely to draw pride from that and as such be more engaged with the hope of generating a meaningful and recognizable impact that they themselves can be proud.

2.2.3. Situational Factors

Other than individual and organizational factors certain situations and occurrences within an organization have the capability of inducing employee engagement. Such factors are describes as situational factors and include among countless others that can simultaneously occur: Technology, development and promotional opportunities as well as worker relationships.

2.2.3.1 Technology

Technology can fall both under situational factors as well as organizational factors depending on the advancement of the organization itself as well as the level of its utilization. In the current century despite the level of engagement and hard work exhibited by the employees of an organization the absence of the right technology is likely to diminish their efforts and render them less productive (De Oliveira and Rocha). Utilization of old technology is likely to be quite exhaustive with the employees and as such minimizes their engagement in the work they do. However the right technological enhancement and equipment is likely to enhance positive attributes in the employees and effectively motivate employees to be more involved and engaged in their work.

2.2.3.2. Development and Promotional Opportunities

Change is the hallmark of any human activity and without it then monotony sets in. Monotony is likely to lead to the development of fatigue among the employees and therefore lead to the loss of morale. Ruyle, Eichinger and De Meuse (2009) are of the premise that providing employees with formal learning programs as well as opportunity to practice their newly learned skills and knowledge on the job in addition to the freedom and opportunity to learn from others around them inspires their involvement in the work and as such enhance employee engagement. Development opportunities improve employees’ skills and abilities to effectively and efficiently undertake their duties; this makes the process of work more enjoyable and bearable and inspires employees to work more. In addition to this the opportunity to grow within the company in terms of ranks and increased remuneration further maintains individuals’ motivation and engagement in their duties with the desire for promotion. Eventually the ability of an employee to engage in their work by themselves due to whichever factor that inspires them leads to hard work, creativity and innovation whose end product in quality products and services as well as improved customer experiences that is likely to induce customer satisfaction and develop customer loyalty. The more loyal customers a business organization has the better its chances of rapid growth and development towards success.

2.3. Customer satisfaction

According to Jovovic et al (2017), Customer satisfaction is perceived as the overall positive response generated after the use of a certain product or service. It can also be a positive response generated from the interaction between customers and sales representatives and employees of a specific business organization regardless of whether the customer uses the organizations product or service. A range of research studies carried out by scholars including (Bloemer and Kasper, 1995; Bloemer and Lemmink, 1992 as well as Chiou 2004) advance that customer satisfaction is an important prerequisite for customer loyalty which is the aim of any business sales and marketing department. Customer satisfaction not only leads to repeated consumption of a product or service but also induces loyalty of the customers towards the specific brand in question (Ranaweera and Prabhu, 2003). As a ripple effect, the more customers are loyal to a particular brand the higher recognition the brand gains within the market and enhances the development of its reputation which consequently benefits the brand by expanding its consumer base and subsequent market. Customer satisfaction can therefore be gained through delivery of quality products and services within the market by an organization signifying that the organization possess highly qualifies and efficient employees who are not only committed to the company but also the companies goals and objectives of growth and exponential development of the companies brand. Employee engagement is therefore crucial in the establishment of quality products and services as well as customer experiences and as such directly impact the customer satisfaction and overall success of the business endeavor undertaken by the respective organization in which the employees render their services. However a range of other factors influence and present conditions with which customer satisfaction is achieved by effective employee engagement, Homburg and Stock (2005) emphasize that a number of recent research studies demonstrate the presence of a positive link between the engagement and satisfaction of employees who come into contact with customers and customer satisfaction. Further they highlight that a number of conditions and characteristics exhibited by both parties either act to strengthen or weaken this bond including customer trust towards a brand, Customer consciousness of prices as well as the level of importance of the product or service to the customer. This highlights the range of possible factors that affect customer satisfaction other than employee engagement, quality products and services as well as great experience.

2.3.1. Factors Affecting Customer Satisfaction

Among these factors as presented by Homburg and Stock (2005) include: Customer trust towards a brand, customer price consciousness, level of importance of the product or service to the customer , customer awareness of substitute brands, Ease of Accessibility as well as Convenience.

2.3.1.1. Customer Trust

The ability of a customer to develop a relationship with the buyer based on trust and understanding is one of the ingredients of customer satisfaction that eventually sums up to their loyalty to the buyer and their product. Employee engagement enables the achievement of traits such as ability for empathy by employees who come in contact with customers as such they are capable of developing a relationship of trust with the customers who then feel understood and cared for and consequently satisfied. Comer and Drolinger (1999) further emphasize that customer trust in a particular brand not only enhances their satisfaction towards the brand but could also ignite their curiosity in being able to try other products by the same brand which eventually lead to the development of customer loyalty towards the brand.

2.3.1.2. Customer Price Consciousness

Despite the fact that price is not a major concern that affect the level of consumer satisfaction, the awareness of a consumer regarding the market prices available for similar products by other brands within the market has the ability of swaying their satisfaction. According to Hanif, Hafeeez and Riaz (2010) customers looking for satisfaction from products or services often consider prices as the last factor in a sense that if the product and service does not quite satisfy their needs then they will be willing to pay more for a more satisfying experience. This is confirmed by a study conducted by Bloemer and Lemmink (2010), which revealed that 9 out of 10 American customers are willing to spend more with other brands and companies other than their previously favorite ones if they believe the new companies provide excellent services.

2.3.1.3. Level of importance of the product or service to the customer

While different business organization may be in the business of producing and selling similar services and products, a customer will stick to a favorite brand due to the importance they attach to the brand and the trust they have with their favorite brand. Customers will be less willing to experiment with other brands in an attempt to seek a higher degree of satisfaction if some importance and risk is attached to the product or service. For instance Hanif, Hafeeez and Riaz (2010) highlight that products impacting on an individual’s health such as cosmetics and drugs carry some degree of importance and risk associated with them and once a customer established a satisfaction from one provider then switching to a different brand represents a risk related to side effects which the customer may not be willing to experience as such they stick to the satisfaction of their already established effective brand. Other factors such as the awareness of substitutes as well as accessibility and convenience affect the ability of customers to be fully satisfied by a product service or experience and may occasionally lead to the changing of brands and supplier in the instance that employees are not engaged enough to be able to device means of satisfying the customer.

2.4. Summary

In summary a range of factors including individual factors such as employee attitudes, health, personal influence and character traits as well as situational and organizational factors effectively affects employee engagement. Favorability of these factors enhances employee engagement which consequently enables the production of quality products as well as the discharging of quality services and developing great experiences with the customers leading to their satisfaction and consequent loyalty to the brand and the business organization. This comes with a wide range of benefits to the organization, key among them the exponential growth of revenue and profits due to increased and frequent sales which subsequently enables the growth and development of a business.

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1. Introduction

Kothari (2004) defines research methodology as the application of science in the conduction of a research study. It highlights an orderly way with which a research study is conducted with the eventuality of deducing inferences and conclusions from findings derived from scientific applications. This chapter will highlight the research technique taken up for the conduction of the study, the relevant research methods, research population and sampling techniques applied, the data analysis technique applied as well as the ethical considerations.

3.2. Research Technique

The study takes up a qualitative research study design seeking to establish the relationship between employee engagement and customer satisfaction. According to Corley and Gioia(2011) the research philosophy and approach of interpretivism and induction are often adopted for research practices that carry out research studies supported by collected data such as this study. As such these philosophy and approach will be adopted by the researcher to guide their study process. The researcher settled to use qualitative approach in order to gain a deeper understanding of the respondent’s emotions and insights as highlighted by Shepley et al., (2013).

3.3. Research Method

Given the nature of the dissertation being a qualitative study that is purely explanatory in nature, and its wide scope of determining the relationship between employee engagement and customer satisfaction and taking into account the limited time allocated for the field study, the researcher employed the use of structured questionnaires with closed ended questions that will represent an ease in the analysis process. In addition to this, so as to establish a deeper understanding of what actually entails employee engagement and customer satisfaction the researcher applied informal conversation and interviews as another means of primary data collection. Through holding personal interviews, a range of motivational aspects can be analyzed and the understanding of people’s patterns of behaving may be improved (Aaker et al., 2008). These data collection methods enhanced the collection of raw insights that clearly presented the relationship between the two variables and adequately provided an answer to the research question.

3.4. Research Population

According to Goddard and Melville (2004), a population refers to a group that is the subject of the research interest. Essentially, a study population is about a set of people, items or objects under consideration in a given study. The research aims to establish the relationship between employee engagement and customer satisfaction two variables that point towards two different sets of population for study: employees within business organizations marketing and sales departments who come in direct contact with customers as well as the customers allied to the selected business organizations.

3.5. Sampling

Knowledge of the range of one’s population and is integral in the determination of whether probability sampling can be implemented (Blaikie, 2010). The study involves a population of employees and customers, each of who have personal sentiments towards the relationship existing between them and as such are viable in the development of the sample. To develop and elaborate sample that will produce viable and reliably elaborate perspectives and benefits therefore random sampling will be carried out in 5 different business organizations in the business sales and marketing departments as well as the customers present at the time of study. This means that the sample is open to restrictions such as age, gender and number of years spent as an employee in these organizations for the employees as well as the length of time the number of times the customer has visited and these organizations. 2 employees and customers will be selected at random from the five business organizations based on their availability to form the sample.

3.6. Data Analysis Technique

The data collected will be analyzed using thematic analysis. Thematic analysis, used as a form of analysis for qualitative research studies focuses on examining themes, patterns and connections within raw data collected through different research methods such as interviews and questionnaires as applied in this research study. Accurate and replicable inferences are made from the analysis of the various patterns and themes regarding relationship between employee engagement and customer satisfaction. Conclusions are then drawn from the findings.

3.7. Ethical Considerations

The research involves the collection of primary data that involves human interaction and the use of humans as the major information source. Ethical issues therefore arise concerning the relevant courtesy to be afforded the various individuals while collecting this information as outlined by British Psychological Association (2013). The ethical issues in this study concerns involvement of employees within these business organizations who depend on these employments for their survival as well as customers visiting these organizations and as such, it is paramount that the research do not compromise in any way their positions in the organization. To avoid ethical issue therefore the study will focus on interviewing only willing participants and further keeping their names and identity anonymous so as to enhance their privacy.

CHAPTER FOUR

4.0 DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1. Introduction

This chapter embarks of the presentation of the data collected in the field work, their analysis as well as the discussion on how employee engagement is related to customer satisfaction. Thematic analysis will be the main method used in the analysis of the data collected from the various structured questionnaires. Thematic analysis, used as a form of analysis for qualitative research studies focuses on examining themes, patterns and connections within raw data collected through different research methods such as interviews, semi structured questionnaires, observations and different other forms of data collection. The different themes and patterns regarding the objectives of the study will be based on the questions asked in the interviews and will form subtitles to the report, consequently and eventually forming a discussion and analysis of employee engagement, customer satisfaction as well as the relationship between the two concepts. The initial phase will focus of the analysis of the questionnaires presented to the employees in an attempt to highlight the various factors that enhance employee engagement and whether or not their engagement has an impact in the overall customer satisfaction. The second phase will focus on the analysis of the questionnaires given to the customers in an attempt to figure out their level of satisfaction from the brand they shop from frequently as well as any connection that may exist between their satisfaction and the level of engagement of the employees towards their service.

4.2. Evaluation of Employee engagement

4.2.1. Background of the respondents

The study involved 10 employees from 5 different business organization 60% (6) of who were male employees while the rest were female employees. All the employees who participated in the study worked within the marketing and sales department of these organizations and as such had a close proximity and often interacted with customers in their daily duties. Further most of the female employees were averaging between 30 to 35 years of age and had worked in the marketing and sales department for an average period of 5 years, indicating a high level of experience in the sales and marketing as well as customer interaction. The male respondents indicated a mixed level of experience: 4 of the male respondents averaged 30-35 years of age and had equally been involved in the sales and marketing departments of their organization for an average of 3 years while the other 2 male respondents informed younger employees averaging 25 years and were only getting started in the department with up to 1 years’ experience on the job.

4.2.2. Elements to consider in the Sales Department

All the respondents highlighted that the main goal of the department was to ensure adequate and efficient services are offered to customers to enable their satisfaction and consequently build their trust so as to enable them to come back again for more purchases in which case the organization benefits from making more sales revenue and effecting growth and development. In line with these 9 out of 10 respondents highlighted the hierarchy of importance when it comes to satisfy customer needs include ensuring immaculate experience, great services as well as quality products. This highlights the most important aspect in customer satisfaction includes a good experience regardless of whether the customer purchases a product or uses a service from the organization. Customers who have a good experience with sales employees in mannerisms such as simple talks and information sharing are more likely to purchase products as well as services and be satisfied with the brand which most likely results to customer loyalty towards the brand. In this way the state of mind of the employees as well as their level of enthusiasm in interacting with customers is a key aspect in ensuring customer satisfaction. 8 of the respondents who included the more experienced employees highlighted a high rate of feedback of up to 70%, from the customers they interacted with while the rest of the other 2 respondents indicated an average feedback rate of 50%. Further the 8 respondents highlighted among the reasons for the high rate of feedback to include the development of a friendly and understanding environment with the customers which enhanced their participation in the sakles process. They further highlighted to the researcher that the many years of experience they have had in interacting with customers helps them to be able to quickly understand the type of customer they are dealing with and as such know how to effectively approach them. The other 2 respondents further highlighted having experienced difficulty in interacting with some customers. As such some customers have walked out of the stores showing clear signs of dissatisfaction and never heard from again. One of the respondent attributed this to the fact that he was not adequately settled in his work station due to pressures by the management to perform and prove himself a part of the organizations sales force. As such he was not in the right mind at all times to comfortably and more attractively interact with the customers. These two respondents highlighted that while some of the customers they served eventually came back to the stores for a subsequent purchase, not many of them came as those served by the more experienced counter parts within the department. 6 of the respondents expressed a guarantee that 80% of the customers they served often came back to the same stores for purchases within a space of a month and often preferred to be served by them as the relationship of trust and understanding has already been established. While the other 2 respondents also attested to frequent returns of the customers they served.

4.2.3. Factors Affecting Employee engagement

Among the various factors highlighted by all the respondents as necessary for their efficient interaction with customers included their ability to be relaxed and comfortable while at the work place so that their mood is highly receptive to the customers. Their ability to be highly engaged in their work without any distractions or outside pressures enabled them to effectively interact with their customers. This highlights that indeed customer satisfaction is affected by full employee engagement and the ability of the employees to give them full attention to deliver other needs and requirements. Further highlighting that the most important factor for employee satisfaction is the experience they get while interacting with sales employees. 1 respondent highlighted that availability of effective office resources such as inventory technologies that kept track of the available products and services as well as their descriptions helped him in being able to effectively advice customers regarding their various needs. Further he highlighted that despite his lack of adequate experience in the department in comparison to his work mates, the various motivational quotes within the walls of the work place as well as the confidence the other employees express on him to be able to succeed further inspires him to be more engaged in his work and effectively serve a majority of the customers he interacts with.

4.2.4. Summary

These findings emphasize clearly that employee engagement is among the major factors that induce customer satisfaction given the most important aspect of their satisfaction is reciving a great experience and services from their interaction. Further the results highlight that a range of factors including organization management, employee experience, organizational culture, technology as well as motivation impact on employee engagement and affect their ability to induce customer satisfaction.

4.3. Evaluation of Customer Satisfaction

4.3.1. Background of the Respondents

The research also evaluated 10 customers, 2 from each of the respective chosen organization 5 of who were males and the other half females. 30% of the customers averaged between 25-30 years of age, 40% averaged 30-40 years while the rest were above 40 years of age. 60% of the customers (30% above age 40 and 30% averaging 30-40 years) attested to being frequent customers in the various stores that they were in during the course of the study, while the rest of the 4 respondents (significantly the younger customers) were only visiting the stores for the first time.

4.3.2. Reasons for using the same store for their purchases

All the 6 respondents who often frequented the store for their subsequent purchases highlighted among the main reason for their subsequent visits included the exemplary customer service as well as the quality of the products and services that they received within these stores. 3 of the respondents (important to note, the older ones above age 40) highlighted that the employees and sales people within these stores were friendly and helpful to them in identifying exactly what products they were in need of. In fact in certain situations the sales people suggested an even better alternative to the products and services they needed and went ahead to outline to them the various benefits they stand to gain from the alternative products. The other 3 respondents highlighted the availability of a variety of products and services they required within these stores as well as the nature of the sales people who were quite friendly and always available to give any advice concerning improvements and/or better alternatives that may suit the customer. One of the respondents went further to emphasize that the products they bought from these stores always worked for them exactly as the sales person at the store would highlight during the purchase. As such she was quite satisfied with the products as well as services and experiences from the stores and would definitely always shop in the same place. These findings highlight that the general service extended by the employees in the sales and marketing department of an organization played a bigger role in the satisfaction of the customers more than the actual products or services procured. The ability of employees to engage themselves in their work and adequately be accustomed to all its aspects, (for instance, total knowledge of a product and its alternatives as well as ability to effectively interact with customers) enables them to induce a good experience with their customers and therefore effect customer satisfaction and consequent loyalty.

4.3.4. What satisfies customers?

60% of the customer respondents highlighted that they came back to the stores due to the services and good experience they received from the sales employees within the stores. They went ahead to clarify that the employees were truthful regarding the quality of products and services they sold to them and as such they were satisfied with the purchases did not require services of any other brands. 2 of the other new customers highlighted that they did not care much about experience but rather whether or not the product or services they procured satisfied their ultimate needs. They went ahead to highlight that they were trying new stores in an attempt to find quality products and services that would actually satisfy them. The other 2 respondents highlighted delays in services as well as rudeness from sales individuals in a variety of stores they have visited and as such were in these new stores in an attempt to get better sales experiences and interaction from the sales staff as well as quality products and services.

4.3.5. Summary

From the findings therefore 80% of the respondents highlights that a good sales-purchase experience informs their number one priority in satisfaction and as such highlights the importance of employee engagement in being able to foster eventual customer satisfaction.

CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATION

5.1. Introduction

This chapter will effectively conclude the main points of the study including the summary of findings and analysis and then proceed to offer various recommendations.

5.2. Conclusion

The marketing and sales department of an organization highly depends upon a variety of factors for its success. These may include internal organizational factors such as management and technology as well as external factors beyond the control of the organization such as market structure, macroeconomics, socio political factors as well as consumer culture and factors. However the most important factor in the success of an organization includes its growth and development which leads to more investment in it which gradually and steadily increases its size. For a business to successfully grow however there’s need to make money which wholly depends on its level of the sales revenue that crop from its daily sales. This all comes down to the customers of the organization and the capability of the organization to attract and retain as many customers as possible. Not only retain them and secure their loyalty but also motivate them to be able to introduce others in the same organization that are looking for similar levels of satisfaction with products, services as well as buyer – seller experience. Enabling customer satisfaction is therefore not only a key element in the growth and development of an organization, but also a key strategy in the eventual long term success of a business organization. The research conducted highlights a range of factors that affect customer satisfaction including quality products and services as well as great experiences that makes them feel appreciated and builds a level of trust in them which enables them to stick to the respective brand as their favorite. Above all however the research findings emphasize the most important factor that customers look for to enable their satisfaction to be a good customer-seller relationship and experience regardless of whether or not they purchase any products or services. To be able to ensure a great experience and customer satisfaction therefore an organization needs to invest in competent employees who are efficient in the marketing and sales department and who can engage the customers and induce a great trade experience. For the employees to be competent enough and efficient they have to be adequately engrossed in their tasks and learn various ways of being able to effectively serve customers. This highlights the importance of employee engagement in relation to being able to foster good customer experiences, as well as quality products and services that will not only ensure the satisfaction of the customers but also acquire their loyalty and keep them coming back for more purchases which in turn ensure the growth and development of the business organization. A variety of factors as highlighted in the research enhances employee engagement and consequently helps the development of customer satisfaction. These factors are classified into organizational factors such as management, organization culture, technology and many others, persona factors such as employee traits, employee health as well as situational factors such as development and promotional opportunities as well as employee’s job relevance in relation to the entire organizations goals and objectives. Aligning all these factors to be favorable for the employees’ workplace enables their maximum engagement and efficient performance in customer service which enables their satisfaction and subsequently fosters the growth of the business.

5.3. Recommendations

In light of the findings of the research the researcher thereby offers the following recommendations for enabling customer satisfaction and increased success of a business organization

Hire and train competent employees to make up the sales and marketing staff

Develop a conducive work environment for the employees to foster their maximum engagement and as such enhance their efficiency in performance

Ensure availability of adequate and up to date resources that will enhance the performance and engagement of employees.

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