A Study on Employee Motivation and Customer Retention Strategies

This report examines the relationship between employee motivation and customer retention, focusing on a study conducted at Mandovi Motors. The research explores the impact of motivational practices on customer loyalty, analyzing various factors like employee motivation, customer retention techniques, and the influence of gender, experience, and designation on motivation levels. The study sets out to establish a model linking employee motivation and customer retention and suggests measures to enhance motivational factors. The literature review incorporates insights from various authors, highlighting the importance of motivated employees in serving customer needs and its positive impact on customer satisfaction. The research methodology involves a survey technique using structured questionnaires and statistical analysis such as ANOVA, t-tests, correlation, and regression. The report concludes that motivated staff members lead to higher customer satisfaction and provides recommendations for improving employee motivation and customer retention strategies. The report also identifies the strengths and weaknesses of the study and suggests improvements for future research.

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Table of Contents
1.Research questions and objectives ...........................................................................................3
2.Literature review.......................................................................................................................4
Research methodology.................................................................................................................5
Strength and weakness of the article............................................................................................5
Conclusion...................................................................................................................................6
3.Recommendations.....................................................................................................................6

1. Research questions and objectives
The present research article is based on understanding the relationship between employee
motivation and customer retention. Further, it is based on organization named Mandovi motors
where main purpose of author is on knowing the real impact of employee motivation in retaining
customers of the organization. Moreover, the keywords associated with this article which author
has clearly defined are employee motivation, customer retention, organizational goals,
motivational variables and customer loyalty. In the entire study information presented are
opinion along with facts also where opinion of employees working in Mandovi motors have been
undertaken. For conducting the entire research in proper manner different research objectives
have been build which are as follows:
 To understand the employee motivational practices followed in Mandovi motors
 To understand the customer retention techniques followed in Mandovi motors
 To understand the relationship between employee motivation and customer retention in
the organization under study
 To understand the influence of gender on motivation
 To understand the impact of experience on the employees on motivation
 To understand the influence of designation on employee motivation and customer
retention
 To bring out the model that establishes the link between employee motivation and
customer retention
 To suggest suitable measure to enhance employee motivational factors that helps in
retaining the customers
All these objectives have been framed for conducting the study in effective manner
Clarity: All the objectives which has been undertaken in the research are clear which are
effective enough in accomplishing aim of the study. Further, through all these objective it is
quite possible to understand the real impact of employee motivation on customer retention within
Mandovi motors.
Feasibility: In terms of feasibility all the objectives are capable enough of answering the research
questions associated with the study. In short, they can support in understanding whether the
motivational tactics employed by organization supports in retention of customers or not.
Objectives are associated with employee motivation, customer retention and their relationship
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with one another. Apart from this, influence of gender, impact of experience etc have also been
considered in the entire research.
Importance: The entire article being prepared is important from corporate point of view as it is
one of the main issue faced by companies to retain its customers and they are able to find out
effective way for the same. So, raising motivation level of employees is considered to be one of
the most effective way to accomplish objective of customer retention. Apart from this, different
factors are present on the basis of which employee motivation level can be raised easily such as
intrinsic which are self driven and extrinsic must be covered by organization for improving
overall market performance in every possible manner.
Substance: Proper information was used in development of research questions. Further, The
article has highlighted that through motivation customers can be easily retained and it provides
base in accomplishing desired goals and objectives of the business. In short, it acts as
development tool for the organization and all the operations can be carried out efficiently.
Without focusing on range of motivational tools it is not at all possible to engage into practices
of customer retention.
2. Literature review
In the entire article being published by Anjali Ganesh various literature review sources have
been undertaken which involve books, journals and online articles. Further, they have provided
base to the entire research where indepth analysis of all the keywords have been done such as
employee motivation, customer retention, motivational factors etc. Views of well known authors
have been undertaken such as Newstrom, pareekm Glinow, Sharma and McShane etc. They have
stated about the concept of motivation and how it encourages staff members to carry out the
business operations. As per the concept of Ahmad, Wasay and Malik motivated employees are
able to serve customers need in better manner which in turn is beneficial for organization in
every possible manner. Apart from this, the four components of employee motivation has been
highlighted and it has positive influence on customer satisfaction. Proper sources have been
undertaken which highlights the key impact of employee motivation on customer retention and
has stated valid facts which were totally useful for the entire research.
Overall the content provided in the literature review is directly linked with the objectives.
Further, proper critical analysis was carried out for accomplishing aim of the research. Use of
literature review of support arguments was done in proper manner and this has provide base to
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the entire research in every possible manner. All the sources undertaken supported in generation
of new ideas such as ways of motivation employee etc.
Research methodology
Author has selected different tools and techniques while undertaking the entire research and
they assisted in accomplishment of research objectives. Data was collected from 100 employees
working in company from different departments as by obtaining information from them it can be
known whether in case of high motivation they are able to retain customers of the company or
not. Survey technique was undertaken with the help of structured questionnaire and for analyzing
the information various tests were applied such as ANOVA, t test, correlation and regression.
Through all these test it was possible for author to gain expected findings.
Strength and weakness of the article
The main strength of the present article was that it focused on employee motivation
thoroughly where it became possible to know the its impact on customer retention. Further, it
highlighted the real ways through which level of employee motivation can be enhanced easily
and in turn Mandovi motors can easily retain its loyal customers. Apart from this, it supported in
knowing about the concept of motivation along with the favorable outcomes which can be
accomplished easily. The research showed relationship between employee motivation and
customer retention. Motivation takes place with the help of large number of factors which are
pay and benefits, positive work environment, encouragement, two way communication, role
clarity etc.
On the other hand customers are retained with the help of meeting their expectations, prompt
delivery and after sales service, quick response to offers, offering complimentary products etc.
So, these are the main strengths which are associated with the present article. On the other hand
some weakness of the present article is also present such as it only focuses on employee
motivation as a factor to retain customers. Apart from this, some other factors are also present
which can be employed for retention of target market. So, this article does not focus on such
factors and it was the major weakness. Moreover, researcher has collected information only from
the employees working in Mandovi motors and it was possible to gain data from the customers
of the company.
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Conclusion
From the entire research it has been concluded that motivated staff members will create
higher customer satisfaction. Further, it has been identified that positive relationship is present
between the two variables. Employee motivation is directly influenced by the intrinsic along with
extrinsic factors which needs to be undertaken by business in every possible manner. Apart from
this, the researcher concluded that involving motivated staff members creates win-win situation
for the organization.
On the basis of conclusion author has provided recommendations such as employing push
factors of motivation within the workplace, team leaders of Mandovi motors must take initiatves
for enhancing motivation level of the employees etc. All these recommendations are beneficial
for the entire company as motivation level can be easily maintained within the company. Apart
from this, it is required to modify the motivational techniques timely so that favorable results can
be accomplished easily in terms of higher level of customer retention etc. So, all these
recommendations were quite beneficial. The language along with the concepts used in the study
was simple and easy to understand. So, it provided base to readers in understanding about
employee motivation and its impact on customer retention.
3. Recommendations
After accessing the entire article there are some recommendations so that research questions,
objectives and literature review part can be improved. Around 8 to 9 objectives were framed in
the present research and they were quite lengthy. Generally any research contains 3 to 4
objectives maximum and in this area improvement is needed. Some of the objectives have no
direct link with the aim of the research such as influence of gender, designation on motivation
etc. Simply motivational factors can be taken for customer retention purpose. Apart from this, in
case of literature review conceptual framework was required to be developed which was not at
all present.
Through this framework it becomes easy to understand the link between different factors
associated with the research. So, in this way these are some of the areas where improvement is
possible in the article for making it more authentic and reliable. Moreover, the recommendations
provided by the researcher were only limited where they does not supported in highlighting the
real factors which leads to customer retention. Further, different theories of motivation were not
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at all undertaken such as Maslow, Herzberg etc through which concept of motivation can be
understood better. Research totally relied on intrinsic and extrinsic factors.
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