Examining Employee Satisfaction, Customer Service and Customer Satisfaction in a Retail Banking Organization

In the increasingly competitive world of retail banking, organizations are focusing their attention on customer service as a means of increasing customer loyalty and retention. With this goal of increasing customer retention, the link between the attitudes of the service provider (employee satisfaction), the customer interaction behaviors that those attitudes lead to (customer service quality), and the attitudes that those behaviors generate in the customer (customer satisfaction) has become an increasingly important area of investigation. The goal of this research is to analyze the relationships that exist between these three variables: employee satisfaction, customer service quality, and customer satisfaction in a mid-sized retail bank. Data from three separate surveys collected during the same time period in 137 branches of a regional bank are analyzed using multiple regression analysis to determine whether relationships and interactions exist at a banking center level. While results of the analyses did not show a significant relationship between the variables, issues relevant to this determination are discussed and conclusions drawn regarding the nature of these constructs