Employee Satisfaction can be defined as how an employee is happy at his work place which can be shown by his loyalty and commitment towards the organization. Job satisfaction is about the feeling of the nature of the job. Employee Satisfaction is very important in an organization because it is what productivity depends on. An organization with more satisfied employees tends to be more effective (Robbins & Judge, 2007). Another major impact that job satisfaction can have is worker’s commitment to the organization and its culture.
Customer satisfaction can be defined as how a customer is happy or agrees to purchase the product and services again, shown by his loyalty and commitment towards the product and services offered by the organization. Customer satisfaction is a mental state which results from the customer’s comparison of a) expectations prior to a purchase with b) performance perceptions after a purchase.
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, 1993). As such, Schneider and Bowen (1985) said that employee job satisfaction is positively related to customers' perceptions of service. This notion suggests that employees who have higher levels of job satisfaction also believe they are able to deliver excellent service (Schlesinger and Zornitsky, 1991). It is also expected that happy or satisfied employees are more inclined to share these positive emotions with customers (Brief and Motowidlo, 1986). This was also consistent with Brown and Lam (2008) who provided the empirical evidences showing the robust relationship between employee job satisfaction and customer satisfaction.
Advantages of Customer Satisfaction
When customers have an issue with your company or product and they get excellent customer service from satisfied employees, then that creates satisfied customers. Your company is more likely to retain satisfied clients when your staff continually shows the ability to exceed customer expectations. Customer retention is critical in maintaining a steady flow of revenue.
Satisfied employees that are given the resources necessary to do their jobs effectively present an intelligent and proactive image to customers. Your company will develop a reputation as a positive company to do business with, and that kind of information will travel through the marketplace and help you attract new clients.
The value of your product is based on customer perception. If your customers perceive your product as being valuable, then you can set your pricing accordingly. Part of the perception of value by your clients is the satisfaction and dedication of your employees. Customers see employee satisfaction as a commitment by the company to general quality. That helps to improve the perception of value for your product and can allow you to charge more.
When you have a staff of satisfied employees, your customers are taken care of in an efficient and friendly manner. If your customers continually get the same friendly and efficient service each time they contact your company, then customer satisfaction goes up and the cost of administering customer service goes down. The decreased costs of customer service add to the overall profitability of the company.