Effect of Customer Dissatisfaction on Profitability
Introduction
Having been in existence for about a decade, our hairdressing company plays an essential role in the hairdressing sector. We have played a significant role in providing a variety of beauty and hair products. With our proper marketing skills, we have attracted very many customers. With the rapid increase in the number of clients, it becomes a necessity to increase the capacity of human resources to be able to meet the rising needs and their desired different expectations. To maintain our company’s reputation, we emphasize on recruiting a highly skilled and competent workforce that will continuously provide quality services. (Chiu and Chu, 2018).
However, we have registered some complaints over the quality of services and the poor relationships between our service providers and some of our esteemed customers. It has been a big blow for the company to note that our customers are not very happy with the service they are accorded concerning the 2019 annual report. The company is at risk of losing some of our clients because a client will not want to return and get the same treatment in the hands of careless service providers. To deal with this challenge, we resort to a more strict recruitment criteria where workers will be slected based on the competency skills and will be required to have a proof of value addition in their line of specialization. this will help the company head towards getting more positive feedback, resulting in customer retention and increase in sales.
Effect of Customer Dissatisfaction on Profitability
Studies show that there is a direct proportionality between customer satisfaction and profitability in business. This essentially means that satisfied customers will automatically seek more services from the same service providers, which means high customer retention for the company. Good stuff indeed making the organization competitive. Retained customers plus potential new customers mean many customers and high-profit margins. On the other hand, poor services mean customer dissatisfaction, which translates to the loss of existing customers and eventually lower profits (Cohen, 2004). Business owners should, therefore, acknowledge that employee relations can seriously affect the performance of the business and use this as a significant tool for decision making.
Purpose of Report Propose
The purpose of this report is to acknowledge that there is a crisis that needs to be addressed within the shortest time possible, and I, therefore, develop this proposal to seek the right authorization and finances to aid in fighting the issues at hand. I intend to use the funds to come up with a guideline and framework that will be used by the human resource team to be able to recruit qualified, talented, and highly competent personnel. These people, upon recruitment, will undergo various training, and they will be often motivated to achieve maximum output in terms of the quality of service and delivery for the organization resulting in future sustainability. (Owusu, 2015).
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The funds acquired will be used in improving the working space of the staff. It will aid in employing methodologies that will motivate employees by increasing their allowances, sending them to paid workshops, and frequent training. It will also make it possible to recruit other employees incase investigations prove that there is a need to replace the incompetent workers or acquire more employees for convenience.
Nature of Problem,
Hairdressing business highly depends on customer reputation. This is basically a customer experience from the moment they enter the business premises, right from the reception to the actual service provider. It takes the effort of the management and service providers to make sure this client gets the best to achieve high customer retention. Employees with negative qualities and negative attitudes prove to be a problem because most clients reported that they were not accorded the full attention they deserve. In addition to that, incompetent sales representatives with poor communication skills trying to sell beauty products ended up in an ugly situation forcing the customers to seek alternative companies. A significant loss for the company. (Cohen, 2004).
The manager is therefore tasked with finding out the required qualities every time they will need to hire a new workforce. Basing on the right qualities, it will be easier for the hiring team to make necessary and timely decisions whenever an employee deems incompetent to save the company of losing to its competitors.
Streamlining the Employee Base.
To fix up important aspects, various perspectives need to be considered. Furthermore, a patch up will be put in place only after the first option fails. To begin with, correcting this problem requires that a deeper examination of employees must be done to find out why there is so much laxity at work. Could it be that they are not motivated enough, or is it all about poor employee engagement strategies? We all know that over time, rational human beings get fatigued and bored after repetitive tasks. Productivity will definitely decrease at this stage, and the management should, therefore, purpose to motivate these people and give them more reason to work more and work better. (Owusu, 2015).
How well can we then motivate this population? An increase in pay, training, seminars, more holidays, and paid overtime can be very appealing, but this is not all because if investigations prove that the organization has already provided all that and we still have a problem, there will be no option left other than doing massive replacement inn all the sectors.
It is essential to have a patch up in the system. The hairdressing company should, therefore, consider investing in new processes, including the recruitment process. The situation at hand proves that the present workforce is more of a liability than an asset. If all this is neglected, then the company bears the cost. At this point, the reputation of the business is at stake. I think it is the best thing for the company because it is cheaper to have an overhaul.
Who is a Competent Employee?
The hairdressing business offers many services, including makeup, body massage, pedicure, manicure, nails, and general beauty products, to mention a few. It is important to note that a top priority must be put in identifying talented, skilled, devoted, and passionate employees because, from the example of services mentioned above, success largely relies on the relationship between the employee and the customer. This is important since passion and self-drive is directly proportional to the output of one’s work. Passion motivates employees to put extra effort in everything they do. (Robinson 2011).
In the hairdressing industry, a competent employee will be required to be up to date with the most current trends, be flexible enough to learn new trends, and learn new skills every other day. This employee must be a good listener because, for this industry, what the customer says is most important even as they remain observant of the changes in the hair and beauty industry. This employee must be current wit the perception of the market about beauty over time and adjust accordingly to deliver timely quality service.
A competent employee in hairdressing must have timely problem-solving skills. They must be able to negotiate and at least find a solution to each problem. For example, in case they were unable to fix the hair or nails to the customers’ expectations, then provide an alternative that best suits the customer so that the customer gets the satisfaction at the end of the service provision. To add to that, they must apologize all the time when it is necessary.
It is essential to be creative and innovative enough to improvise ideas in this industry. This alone calls for a confident employee. An employee who believes in what they do, not showing any signs of a possible mess even if there may seem to be one. When faced with critical situations, they must be able to find a way out without discouraging the employee to come a second time. (Robins, 2011).
The aspect of social being is also critical. The employee should be outgoing and train themselves to handle all kinds of customers. Must be able to interact with others freely and even consult when necessary. Everyone will want to be served by a happy and interactive service provider. This will help them learn new skills each day and gain a competitive advantage for the company.
A good employee is also a team player, working with others to achieve customer satisfaction through all means. In a team, new skills, new knowledge is shared. Feedback also comes in handy, and a well-organized team will become more productive. A good employee is a self-motivated and committed individual. Hairdressing demands personal inner drive to offer the best services. Customers want to trust you with their heads, nails, and face; therefore, the way the workforce handles the client matters the most for a happy customer review. A good employee, therefore, works towards creating a good business reputation and image.
Conclusion
In conclusion, the profitability of the business largely depends on employee performance. Keeping that in mind, the competence of employees becomes a very fundamental issue to look into. Therefore, it is essential to look at the qualities described in the paper keenly. More focus should be put on the recruitment process to meet and even exceed customer expectations. Since employees are the contact of the business between the market and the company, the management should invest in them accordingly to retain the right business image and have a profitable organization (Theron, 2018)