Customer satisfaction and revenue generation among Safaricom retail centres in Nairobi

Abstract

Customer satisfaction has become integral to businesses in the retail industry as retailers realize the benefits accrued from customer loyalty and retention. One of the benefits identified is increased profitability. This study aimed to establish whether a relationship exists between customer satisfaction and revenue generation in Safaricom Retail Centers.

Safaricom as a company has invested a huge amount of money on monthly customer satisfaction surveys. These surveys are aimed at acquiring first hand information from customers about service delivery in the retail centers and are then used to bring about customer focused improvements in the overall service delivery and layout of the shops. The ultimate goal of these surveys is building a relationship with the customer therefore leading to loyalty and retention. Studies have shown that building better relationships with the customers resulted in better returns to companies (Reichheld, 1996).

Research for this study was carried out through the survey design. A sample of ten retail centers from Nairobi was used. Secondary data was obtained from the organization. This data included revenue data and customer satisfaction survey data for the ten retail centers for the period January 2010 to June 2010. Regression analysis was used to establish linkage between customer satisfaction and revenue generation. The study has shown that there is a general sense of satisfaction amongst the customers.

This is shown by the above average rating that they have given to their satisfaction levels. There is however a deteriorating aspect as the customer satisfaction levels reduces gradually as time passes. The study also showed a significant relationship between the level of customer satisfaction and the amount of revenue at the retail center. This calls for the company to carry out more studies on 'customer needs assessment' so as to determine what customers value when being served.