Featured Research

from universities, journals, and other organizations

To boost customer satisfaction, owners should pay attention to employee job satisfaction

Date:
June 1, 2011
Source:
University of Missouri-Columbia
Summary:
A new study has found that CEOs who pay attention to employees' job satisfaction are able to boost both customer satisfaction and "repurchase intentions," or the number of customers that intend to purchase products from the store.

Previous studies have shown that customer satisfaction plays a key role in the health and future success of any company. When customers are satisfied, they keep coming back to the same store and invite their friends to do the same. Now, a new study from the University of Missouri has found that CEOs who pay attention to employees' job satisfaction are able to boost both customer satisfaction and "repurchase intentions," or the number of customers that intend to purchase products from the store.

Related Articles


"You might think that as an owner, you only need to pay attention to the customers, providing them with what they want. Yet, we found that keeping your employees satisfied with their work experience, providing them with challenges and allowing them to have a sense of ownership in the business can have a tremendous effect on customer satisfaction and loyalty," said Christopher Groening, assistant professor of marketing in the Robert J. Trulaske, Sr. College of Business. "The link between customer satisfaction and customer loyalty is almost twice as strong when you have high employee satisfaction compared to when they are not satisfied with their jobs. This double-positive finding stands in contrast to the idea that a firm can neglect to satisfy their employees as long as they pursue customer satisfaction."

While Groening and coauthors Heiner Evanschitzky from Aston Business School in the United Kingdom, Vikas Mittal from Rice University, and Maren Wunderlich from T-Mobile International, studied a large franchise, they believe the results would be comparable with a business of any size. In their study, the research team reviewed a European retail franchise system that has approximately 300 outlets with 933 employees and more than 20,700 customers. Satisfaction data was obtained from employees and customers regarding either working for or buying from the business. The study was published this month in the Journal of Service Research.

"This is not a one-way street where companies implement policies and can expect to experience gains solely through customer service," Groening said. "The relationships among the CEO, the employees and the customers are all linked. It's important for CEOs to know that they can have a large impact on customer service without ever talking with a customer or implementing a new customer service policy."

Following his study, Groening recommends the following actions, based on answers from the employee survey questions, to increase employee satisfaction:

  • Train and empower employees so they have the tools to make decisions. This allows them to make decisions that are beneficial for the company and each individual customer -- instead of following a simple flowchart and possibly upsetting a customer with the final outcome.
  • Hire managers who serve as examples and also can be mentors with employees. If a company policy is established, it should be honored by managers as well as employees. Additionally, managers should help employees know what is expected in order to advance in the company.
  • Create good working atmospheres. Offer incentives or intangible benefits, such as flexible working hours, if possible.

"While many of these actions might seem like common sense, they can be very difficult to maintain," Groening said. "It's also very important to hire the right people in management positions who will take part in these activities -- for example, serving as mentors -- or employers might have difficulty meeting their goals."


Story Source:

The above story is based on materials provided by University of Missouri-Columbia. Note: Materials may be edited for content and length.


Journal Reference:

  1. H. Evanschitzky, C. Groening, V. Mittal, M. Wunderlich. How Employer and Employee Satisfaction Affect Customer Satisfaction: An Application to Franchise Services. Journal of Service Research, 2010; 14 (2): 136 DOI: 10.1177/1094670510390202

Cite This Page:

University of Missouri-Columbia. "To boost customer satisfaction, owners should pay attention to employee job satisfaction." ScienceDaily. ScienceDaily, 1 June 2011. <www.sciencedaily.com/releases/2011/06/110601131751.htm>.
University of Missouri-Columbia. (2011, June 1). To boost customer satisfaction, owners should pay attention to employee job satisfaction. ScienceDaily. Retrieved December 18, 2014 from www.sciencedaily.com/releases/2011/06/110601131751.htm
University of Missouri-Columbia. "To boost customer satisfaction, owners should pay attention to employee job satisfaction." ScienceDaily. www.sciencedaily.com/releases/2011/06/110601131751.htm (accessed December 18, 2014).

Share This


More From ScienceDaily



More Science & Society News

Thursday, December 18, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Kids Die While Under Protective Services

Kids Die While Under Protective Services

AP (Dec. 18, 2014) As part of a six-month investigation of child maltreatment deaths, the AP found that hundreds of deaths from horrific abuse and neglect could have been prevented. AP's Haven Daley reports. (Dec. 18) Video provided by AP
Powered by NewsLook.com
UN: Up to One Million Facing Hunger in Ebola-Hit Countries

UN: Up to One Million Facing Hunger in Ebola-Hit Countries

AFP (Dec. 17, 2014) Border closures, quarantines and crop losses in West African nations battling the Ebola virus could lead to as many as one million people going hungry, UN food agencies said on Wednesday. Duration: 00:52 Video provided by AFP
Powered by NewsLook.com
Los Angeles Police To Receive 7,000 Body Cameras

Los Angeles Police To Receive 7,000 Body Cameras

Newsy (Dec. 17, 2014) Los Angeles Mayor Eric Garcetti announced the cameras will be distributed starting Jan. 1. Video provided by Newsy
Powered by NewsLook.com
Ivory Trade Boom Swamps Law Efforts

Ivory Trade Boom Swamps Law Efforts

Reuters - Business Video Online (Dec. 17, 2014) Demand for ivory has claimed the lives of tens of thousands of African elephants and now a conservation report says the illegal trade is overwhelming efforts to enforce the law. Amy Pollock reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins