Strategies for Customer Satisfaction and Loyalty

St considergies for client Satisfaction and subjectionAbstractThis query aims at to provide the strategies which can be sedulous by company in order to establish client comfort and client committedness by looking at the persona of siamese connection squ be which is the famous Thai restaurant in London regarding to its reputation. Since guest relationship vigilance is procureing more important to condescensiones. Many companies try to solve their problem by applying node relationship worry such as the motivation of cater , ply tuition , rule of increase client delight, how to f solely upon guest loyalty. These factors can tame to shapeing node loyalty in the future.In the parting of literary feeds review pass on express on the basis theories which are relevant to the client relationship anxiety. This search contains the motivation speculation , mental faculty training , customer satisfaction and customer loyalty.By achieving this explore subprog ram , this research employs secondary and primary info. The primary data was acquired by a questionnaire survey which is the methodology of this research. Regarding to the questionnaire for staffs , in that respect are 20 respondents who participated in this research as swell as there are degree centigrade respondents who walk into and eat at Thai square restaurant who responded to the questionnaire for customers. The sample size of this research is Thai square restaurant (Minories).To conduct this research researcher used both primary and secondary data bring home the bacond by self administered questionnaire. By analysing primary data from the questionnaire , the SPSS and Microsoft Office excel was used to achieve it. The statistical method was applied to analyse the give of this research. The results illustrate what factors could gain customer satisfaction , how successful the staff mathematical process after being trained , how well staff can achieve companies targets.T his research in like manner provides recommendations for company and the further research so that company can repair the customer relationship guidance as well as can gain more customer loyalty in the future.Chapter 1Introduction1.1 OverviewNowadays, the consumer behaviour has been departd from the carrefour centred stage to the customer cantered stage . Moreover, the customers behaviour has been changing. Mudie Pirrie (2006 p.7 ). When they acquire product , they expect non only sincere product , flavor and design only when they alike expect on emolument. Therefore, the go has been the significant reason in decision making process.Since many melody birth been trying to improve and develop their strategy in order to meet the customers need rather than the products. All organisations doing has to give an important to the customers. Companies need to severalize all details of their customers such as the details about what customer need , who they are , what they ge t, when and where they buy , how often and how practically they spend. Moreover, companies suck in to evaluate approximately the customers behaviour in order to predict what customers lead do in the future. In addition, companies should establish the database of their customer and profile so that they can keep disturb and advertise new promotion. These has been the cognition of company which bring in been assumed as the asset of company. The managing customer relationships strategies is the inwrought process.By emphasizing on customer relationship counselling , companies may increase their abilities in subtile what customers need. Moreover, customer relationship management can help companies to target potential customers and to cut unnecessary bell and gain laid-backer return on investment.As the staff motivation and training is a part of the world Resource Management. There is a connection between customer relationship management and Human Resource Management because c ustomer relationship management relies on staffs effectiveness and moral. Customer relationship management focuses on customers. To satisfy them , companies need to develop their staff effectiveness and moral utilise motivation and training method. By doing so , companies may gain customer satisfaction and customer loyalty which are companies objectives.Customer relationships management strategy has generally been companys strategy in managing customer relationship so that companies can retain their customers and increase customers satisfaction and loyalty (Blazey 2006 p.136)(Kumar 2006 p. 156-157)Companies are focusing on customer retention , customer loyalty and customer satisfaction as a key management objectives. The one objective of customer relationship management is the advertising of customer loyalty .(Peppers Rogers 2004 p.12). The greatest get ahead of customer wait on is customer loyalty (Tschohl Franzmeier 1996 p.20).Loyal customers are forcing organization changes. (Montano 2005 p.332)and can improve employee morale and productivity because customers respond dictatorially to company. (Tschohl and Franzmeier 1996 p.20).The motivation for loyal customer based on better products, better serve well and better commercialise nurse.(Montano 2005 p.332) . The passenger vehicle is more likely to achieve improved levels of motivation(Nieto 2006 p.108) Companies have to motivate staff to participate in training process for improving staff operation so that they can achieve customer relationships management strategy. Organization tend to concentrate on performance management and rewards to elicit employee cooperation , bridge overing the value management and employee relations in determineforce. (Nieto 2006 p.108)1.2 Aims and ObjectivesThe objective of this research is to provide the strategies which can be employed by company in order to establish customer satisfaction and customer loyalty and to improve employees performance to achieve objective in the future.The objectives are that 1. To evaluate the customer satisfaction which may lead to customer loyalty2. To explain the relationship between motivation of staff and staff training as well as their effectiveness to improve customer service in order to satisfy customer3. To establish the appropriate strategies for restaurants in terms of customer relationship management.4. To give an advice for restaurant , staffs on how to improve their potential in providing so as to satisfy customer.1.3 Organization emphasizeThe Thai Square eating place Group was founded in 1996 when the first Thai Square opened in The Strand in exchange London. Thai square restaurant aims to maintain the leader status in the London market and sustainable nonplusth of Thai restaurant market. The currently competition is intensive and the customers behaviour have been changing very rapidly. Many competitors can soon gain the competitive advantage and also gain more market share eventually. The compa ny creates challenges with authentic Thai nourishment, fresh ingredients , excellent service as well as restaurants design and decoration to be unique and unalike from the competitors. To channelize these challenges, the company need to provide a great service in order to gain customer satisfaction and loyalty. Thai square has think to add value to the customers by capturing customer feedback received by telephone, e-mail, and establishing a knowledge base of problems and solutions. (Interview with restaurant manager of Thai square (Minories)According to the restaurant review, the customers get hold of Thai square restaurant because its decoration , quality of intellectual nourishment and service however the price of food and drink in Thai square restaurant when compare to the competitors is quite high especially like a shots stintings is critic and the customers behaviour have been changing. They may choose to spent on food and drink which is non too expensive and value for money. Therefore, they bequeath choose nighwhere else which is cheaper even if it is not good as Thai square. The change magnitude competitors and changing consumer behaviour are forcing company to apply the managing customer relationships strategies such as customer loyalty , customer loyalty and customer service so as to meet customers need. Thai square uses the sen whilent of managing customer relationships strategies to be the optimal solution for this case. (Interview with manager of Thai square (Minories))In the case of Thai square restaurant, the company grew at a lower rate than last year (2008). Net profit declined by 23% from last year due to scotch crisis. In addition, it is affected from changing consumer behaviour.The company applied the view of customer relationship strategies to meet the customer satisfaction and consequently increase customer loyalty.1.4 Research StructureThe structure of research consists of 6 chapters is as followsChapter 1 IntroductionThis c hapter contains aims and objectives of research , organization background which is a case study of this research as well as the structure of this research.Chapter 2 Literature reviewThis chapter focus on all theory and strategies that relate to this research such as motivation theory , staff training , customer service , customer satisfaction and customer loyalty.Chapter 3 MethodologyThis chapter describe what methodology can be employed in research and what methodology which is applied by this research. This chapter also contains the objectives and goal of this research, research design , take method , data collection and data analysis technique as well as the asperity of this research.Chapter 4 Data analysisThis stage is using Microsoft office excel (Excel) and SPSS program to analyses questionnaires data. As well as this process will be evaluated data into percentage and mean score in order to show result by bar chart and pie chart in next step. freeze chart and pie chart will help to easily at a lower placestand the research topic in severally questionnaireChapter 5 ConclusionThis chapter provide the conclusion of the questionnaire result is provided to answer the research aims and objectives.Chapter 6 RecommendationsThis chapter provide some recommendations for company and its employee as well as further research.Chapter 2Literature ReviewAs a result of competitive business situation , many businesses need to pay circumspection to the new method in retaining and creating new customers. Customer loyalty lead to profitability. Companies should develop positive relationship with customers by change magnitude customer satisfaction. Since customer satisfaction has been an important to establish long term relationships which may result in customer loyalty and long run businesses. It is widely known that the cost of retaining an existing customer is much cheaper than attaining a new customer.In addition, change magnitude a customer loyalty may be achi eved by the level of service which is delivered by company. Companies need to develop the quality of service by change magnitude responsiveness , fulfilling customers needs as well as providing consistent service. In many business industries, customer satisfaction has been used as the guiding teaching for developing customer relationship management strategies as well as organizing business activities.2.1 Theories of Motivation2.1.1 IntroductionThe motivation in work is The processes by which people are enabled to and induced to choose to behave in particular ways (Stevens 2005 p.90). As a result, The motivation could be maintained and improved if it was related with a seek for the methods by the origin performance and productivity of members2.1.2 Need Based TheoriesThe previous idea of man motivation was based on the concept of self-satisfaction which man tries to meet with the happiness and relieve and tries to avoid sadness and distress. However ,this positment, whilst being manifestly rational, cannot clarify many ways of human mien. For example, why do the volunteer charity workers offer their time and attempt for nothing? Why do amateur athletes exert such high levels of effort, whereas a hedonist would prefer to relax? Researchers started to translate that human has early(a) needs and relys which cannot be given an explanation under such a restricted observation of human behavior as hedonism. Therefore, there is the basic convention of needs theories which human motivation is resulted from the absence of an important needs.(Argenti 2002 p.89) descriptor 2.1 The Motivation FrameworkSource Griffin, R.W. (2003), basics of Management- Core Concepts and Applications (3rd edn), Houghton Mifflin Company, Boston2.1.3 Maslows Hierarchy of NeedsYeatts and Hyten (1998 p.62) regarded motivation as a continually changing desire to fulfill changing needs. Maslow supposed that human needs arose in a hierarchy of importance, that was called prepotency. Only the motivators will play a role on the next stage of needs in the hierarchy. Therefore, the act as motivators would be ended when the stage of needs has been fulfilled and the person will pay directly the attention to the next stage of needs in the hierarchy. Maslows hierarchy of needsis shown in Figure physiological needs(Food, water, shelter)Safety needs(security, protection)Social needs(sense of belonging, Love)Esteem needs(status, self-esteem)ActualisationNeeds(Self- ontogeny)Self-Figure 2.2 Maslows Hierarchy of Needs2.1.4 Motivation-Hygiene TheoryThe research observed the link between pedigree satisfaction and productivity with 200 engineers and accountants. The research outcome was the motivation hygienics theory of Herzberg, which proposes that certain factors (intrinsic factors)can result in contemplate satisfaction, while others (hygienics factors) can prevent from dissatisfaction further cannot stimulate satisfaction. Herzberg at el (1959 p.102). Intrinsic factors are factors which are inherent to the job, for instance , the satisfaction of the job itself as well as the recognition and development for success , the availability of chances for the responsibility.On the other hand , hygiene factors are relevant to the environment in which the job performance is achieved. The hygiene factors consist of working curbs , supervision and inter own(prenominal) relations , salary as well as the policy and administration of organization. Besides, the importance prerequisite factor , which is needed to influence humans motivation, is regarded as the hygiene factors.The motivation factor would be able to proceed on the staff and establish job satisfaction and productivity if there were good hygiene factors which lead the staff to be in a form of no dissatisfaction. Consequently, to encourage staffs towards higher(prenominal) productivity, while it is important to ensure that the hygiene factors are correct, the manager must manipulate the motivation by att ending to job-content issues (e.g. job-enrichment)? (Carson at el 1997 p.136). Job- enrichment entails redesigning jobs to confuse them more interesting and challenging by allowing provisions to be made for increased responsibility, creativity and autonomy.The Herzberg research has been criticized because of the research itself and the biased collection of sample (see Holloway 1991). Holloway (1991 p.1) stated that the clerical and production workers did not relieve oneself the accounts he was seeking, he didnt sample them. Goldthorpe et al (1968 p.11) suggests that other types of employee (such as assembly-line workers) may indeed view work in the way expressed by scientific management and be primarily motivated by financial incentives. A case of workers being primarily motivated by what Herzberg regards as a hygiene factor. The important point to be made from the criticism of Herzberg and from the work of Goldthorpe et al. is that no one theory, be it human relations or scientif ic management, is likely to apply universally.Different socio-economic groups appear to attach different meanings or have different orientations towards and work (Parker 1972 p.200). While different group s of people may have different attitudes towards work, they are also likely to react differently towards management policies. A model of worker motivation should therefore be able to differentiate between different types of worker and treat the wants, expectations and attitudes towards work as culturally determined variables, not psychological constants (Goldthorpe 1968 p.178).As a result of the differences of each staff , company should apply a motivation policy so as to encourage an individual behavior and characteristic of its staff. To motivate people with different need and different characteristics is difficult but it would be recognise and challenging. It can be said that hope is the magic component of motivation.The motivation factors help staffs to do a better job and to increase productivity(Steinberg 1976 p.123) ( Kamin 2002 p.87). The theorists propose that there are four strongest motivation factors which are the achievement feeing personnel accomplishment for having done a job well , the recognition being recognized for doing your job well for example , being complimented by your boss and receiving an award , the participation being involved in your work having some responsibility for making decisions and the growth having the opportunity for challenge in the job, such as the chance to learn skills and knowledge. (Kamin 2002 p.87). Manager not only should translate attitude and knowledge into action but also recognize that people have diverse motivations for asking to join a team (Nieto 2006 p.56).Therefore , manager should to be encounter in how theories and models can be translated into useful practices (Currie and Procter 2003 p.14) in next step on training and practical skillMotivation FactorsAchievementThe work itselfRecognitionResp onsibilityGrowth furtheranceSatisfaction No SatisfactionHygiene FactorsSupervisionCompany policyRelationship with supervisor work conditionsSalaryRelationship with peersStatusSecurityDissatisfaction No dissatisfactionFigure 2.3 Motivation-Hygiene theory2.2 Training2.2.1 exposition of trainingTraining has been defined as the planned activities on the part of an organization to increase job knowledge ,skills or to modify the attitudes and social behavior of the members in ways consistent with the goals of the organization and the requirements of the job (Robin 2003 p.1219)(Anderson and Neil 2001 p.280) instruction has been defined as any attempt to improve managerial effectiveness through a planned and deliberate learning process .Methods of training needs / analysis needs. (Wilson 2005 p.149)Job analysis.Job description.Interview with the job holder.Interview with the manager / supervisor.Performance objective.Analysis of competencies.Reasons for trainingPoor performance and /or pro ductivity.A change in working methods.Introduction of a new technology or equipment requiring new /different skills.Changed or new product range ,after sales etcReplacement of employees who have been promoted or transferred, and training the employees who are all promoted and replaced.To improve workplace safety.(Ferris, et al 1995 p.154)2.2.2 Training Methods2.2.2.1 Attitude trainingAn attitude training is an individuals characteristic way of doing or responding to a object or a situation. It is based on the visualise and leads to certain behavior or the expression of certain opinions.2.2.2.2 Methods of attitude trainingOn the job last placing the trainee within a group whose attitudes are thought to be appropriate .This socialization process tends to produce the desired attitude in the trainee.On the job training This may involve Shadowing? or being attached to a senior employee who has the desired attitudes and personal qualities to influence the employee .(Bohlander 2001 p.235 )On the job focusing s senior member of the organization with the desired qualities and attitudes is appointed as the mentor to the employee.Off the job training A group of employees engage on case study activity intended to emphasize relevant and desirable attitudes.Off the job exercises Role-playing exercises.2.3 Customer serviceThe small companies should emphasize on creating positive relationships with their customers. Customers with positive dealings with companies are likely to be loyal. There are three fundamental idea which lead to the focus on delivering an dramatic customer service. Firstly, the high level of customer service increases customer satisfaction. Secondly, customer satisfaction leads to customer loyalty. Thirdly, small companies have a initiative in delivering greater customer service than large companies. From those three fundamental idea , it can be concluded that by not concentrating on customer service may endanger the achievement of customer satisfacti on and customer loyalty. (Longenecker 2005 p.289)In general , good customer service is to meet customers expectations by giving the importance and value to them. Their be in companies service will decide that not only they want to continue doing the business with companies but also what will they give a word of mouth about companies service. The good customer service is decided by customers who is given the service. As each customer has different needs and expectations. Therefore, companies need to intentional service for individual customers.2.3.1 Why customer service is importantThere are a research shows that when employees have a poor view of customer service , this will result in high turnover in companies. Therefore, to increase the quality of service could lead to increase employee retention and customer loyalty. almost people would like to do good work. They may lack skills and so they appear unmotivated, or they may be job-hopping because they have not found work environm ent that support their talents. By giving the support and training as well as service environment which focus on customer staffs could have tools they need to give customers what they want and deserve. (Kamin 2006 p.1)In addition ,training is important part to improve quality. Good staffs understand that training is crucial for being successful on the job and for future career opportunity.2.3.2. The value of good serviceService is important to customers as well as it is important for business development. The aim of companies by creating more value for customers is to retain customer to their companies. Everyone in companies should help to build value as well as their jobs aim at serving customers. When everyone understand their role in serving customers, there will be the results which are creating goodwill and increasing companies reputation , decreasing in the case of poor quality , improving the chances of cross selling and up selling , gaining in the number of customer retenti on , trim down employee turnover , making more profit , establishing the goal and performance measure , having competitive advantages and being differences from competitors.(Zemke and woods 1999 p.12)2.3.3 How to provide good customer serviceMost customers have common expectations. They need companies to deliver an outstanding service , solve and realize their problems as well as make an apology if anything went wrong. To determine customer satisfaction companies need to meet their customers needs. Moreover, there are some methods which could help to build customer satisfaction. Firstly , companies should give the attention to customers all the time. Secondly, companies have to listen to customers in the way of intellectual what they really need.( Aguilar and Stokes 1995 p.3-7)2.4. Customer LoyaltyAs the purpose of increasing profit by continually satisfying customers need becomes more prevalent, the significance of meeting customers satisfaction and increasing their loyalty bec omes more important in the competitive business (Disney 1999 p.491). As a result, business possessor who want to be successful in the long term should encourage customers visits and make more sales. Good business owner have known and understood this situation well and devoted much of their consideration to ongoing and increasing sales through a variety of marketing activities. Business owner of subtle products should do the same(p) for supporting competitive advantages( Disney 1999 p.491)(Grnroos 1990 p.3).Moreover , since the need of focusing marketing attempt on maintaining existing customers grow to be the principle of marketers (Grnroos 1990 p.3), the topic of customer loyalty, which aim to increase the regularity of a customers behavior and the possibility of cross-selling, has been received more consideration recently (Buttle and Burton 2002 p.217 Dick and Basu 1994 p.99). In this part, the customer loyalty, the different types of loyalty, characteristic of service and servic e loyalty and the benefits which companies may gain by increasing customer loyalty, plus the related factors which may affect customer loyalty, will be discussed.2.4.1 The Origin and Meaning of Customer LoyaltyThe first admittance is that loyalty is a surrogate of retention in other words, a customer who keep on buying one product or service is a loyal customer. However, the second approach regards customer loyalty as a mental conception with an affective or attitudinal component, which could in fact suppose the essence of retention ( Buttle and Burton 2002 p.217Ennew and Binks 1996 p.219).Loyalty is unlike repeat buying behavior loyalty includes an attitudinal component which should firstly come to mind before repurchasing products or services (Buttle and Burton 2002 p.217 Dick and Basu 1994 p.99). Therefore , loyalty is a state of being faithful and honest to a particular product or service, and proving such faithfulness and honesty. On the other hand ,repeating purchase only r epresents frequent occurrence of the purchasing behavior which persists in a given period of time.The meaning of loyalty and repurchase have common characteristics because of the frequency of use increasing when there is a high level of loyalty (Liddy 2000 p.351). Consequently, frequent customer should not be regarded as loyal customer because frequent customer possibly purchases product or service from several different companies. Moreover, customers purchasing behavior could be changed by different situational factors. Buttle and Burton (2002 p.217) stated a characterization of loyalty from a companys head of customer relationship division Its about having had experiences of things that you feel are important.Putting it in personal terms, you build loyalty to your friends through personal experiences youve shared. Customer loyalty really is like friendship (p. 218). This principle implied that although many customers may carry on to purchase with particular marketers, they could be unfaithful to the product or service sellers. Hence, by explaining the knowledge of customer loyalty, many attempts has been dedicated to classify the different types of customer loyalty.Moreover, to understand the differences between customer loyalty to goods and services as well as the typologies and the origins of customer loyalty, the benefits that businesses could obtain from increasing customer loyalty have been suggested by many authors. With the knowledge of both the characteristics of service loyalty and the burnished benefits received from increasing customer loyalty as well as the importance of retaining existing customers could be obtained.2.5 Customer SatisfactionGenerally , most customers do not criticize about their dissatisfying experiences of product or service. However , they could change to another sellers ( Boshoff 1999 p.236). If the seller cannot offer what customer want, there are many other different sellers which provide similar products or services in the market. To sum up, sellers who want to attract or retain customers have to meet customers needs and satisfaction (Oliver 1998 p.14 ).Customer satisfaction has become increasingly to sellers attention during the past decades. Nevertheless, customer satisfaction has been one of the most unquestionable theory of the recent management field (Oliver 1996 p.11-12 ). The idea of customers satisfaction have a clear, reasonable concept. Moreover, it is commonly understood that customer satisfaction could lead to customer loyalty as well as result in higher future profit(Oliver 1996 p.11-12). In many business industries, customer satisfaction has been used as the guiding principle for developing CRM strategies as well as organizing business activities.However, customer satisfaction should not be an objective by itself. Customer satisfaction should be employed as a method for developing the companys performance (Martensen et al. 2000 p.544-53). A number of empirical researches have reveal ed a relation between customer satisfaction, customer loyalty, and the economic performance of a company while customer satisfaction has been evaluated in different ways, for example, stock market value, added market value and return on investment (Anderson et al. 1994 p.53-66 Eklof et al. 1999 p.514-22).On the other hand, the topic about the background of customer satisfaction, the relationship between customer satisfaction and customer loyalty as well as customers post-purchase behavior are presently arguable. To understand the idea of satisfaction undoubtedly and realize the benefits of customer satisfaction, relation between customer satisfaction and related matter are the main significance in this study.2.5.1 Definition of SatisfactionCustomer satisfaction has developed into one of the main purposes for business since the 1990s. Johnson and Fornell (1991 p.267-86) termed satisfaction as a general assessment of customers purchasing and consuming experience. In a few days later , Oliver (1996 p.11-12) provided the recognized definition of satisfaction, which he stated to be linkage with the theoretical and empirical evidence to battle Satisfaction is the consumers fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides (or is providing) a pleasurable level of consumption-relate fulfillment, including levels of under or over-fulfillment( p. 13).As a result of the importance of satisfaction, many businesses initiate to assign their job to evaluate how satisfied their customers are and to observe how satisfaction ratings affect customer retention and their profit (Bolton 1998 p.45-65).2.5.2 Importance of Customer SatisfactionIn 1990s, there was a prevalent knowledge that satisfaction ratings has been in fact a process to reach strategic purposes, for example, customer retention which is understood to have an effect on companies profits directly (Jones and Sasser 1995 p.88-101). To concentrate on in creasing satisfaction is necessary since satisfied customers have more potential to come back the same divulge or repurchase the same product or service (Reichheld 1996). Furthermore, customer satisfaction is regarded as condition for customer retention and loyalty, and apparently it is important to understand economic target such as market share, return on investment and profitability(Hackl and Westlund 2000 p.820-25).