March 23rd: Ofgem has accused the “Big Six” of not playing a fair game with consumers, offering a complex system of tariffs with a great difference between their standard tariffs and direct debit tariffs. In spite of increased consumer calls for a sector reform, ever more frequent investigations and a radical change in utilities’ billing, [...]
Employee vs customer satisfaction
February 23, 2011
February 23rd: Numerous empirical studies confirm the link between customer satisfaction and financial performance as well as the strong positive correlation between employee satisfaction and customer satisfaction at any point in time. For example, Sears Roebuck & Co showed that a 5-point improvement in employee satisfaction generated a 1.3-point rise in customer satisfaction, which generated a 0.5 increase in revenues.
In addition, Brooks (2000) found that according to the sector analyzed, between 40% and 80% of customer satisfaction and loyalty was due to a customer’s relationship with a company’s employees. Vilares and Cohelo (2000) also found that perceived employee satisfaction has an important impact on the perceived value of the products which is directly linked to customer satisfaction.
The relationship between employee and customer satisfaction is directly reflected in Alva’s reputation analysis. As analysed for the three-month period ending January 2011, a change in employee sentiment towards utilities (Alva: Corporate Culture reputation driver) is positively correlated with customer satisfaction (Alva: Products and Services Execution reputation driver) and also shareholder value (Alva: Financial Performance reputation driver).
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