RESEARCH PROBLEM

In a rapidly changing environment, enterprises are finding it increasingly challenging to build and sustain a competitive advantage (Everett, 2015:15). Delivering a positive

customer experience is considered a key differentiator in many businesses (Macgillavry & Wilson, 2014:6), but the influence of employee engagement on customer experience is not always properly understood, nor valued by many organisations. A growing body of knowledge is beginning to agree that an engaged workforce may be the crucial link to better customer experience (Berry et al., 2002:5;

Varma, 2012:78; MacGillavry & Sinyan, 2016:8). According to Vision Critical (2016) customer experience is not considered to be a technology problem, but rather a culture problem. In addition, the author argues that a general obstacle to an improved customer experience is when employees experience a disconnect between how they expect to treat customers versus how they experience they are being treated by their organisation.

Despite of the apparent benefits and importance of engaged employees, a large number of enterprises are failing dismally at this test. According to Gallup (2013:56), only 13 percent of the global workforce and only 9 percent of South African employees indicate that they consider themselves engaged in the work place. It is alarming that such a large percentage of employees feel disengaged, considering that 89 percent of management teams in organisations believe they should be competing on the basis of their experience which they deliver to their customers.

From the above, scholars and practitioners alike are starting to agree that customer experience management that excludes employee engagement is missing a crucial part of the solution.

Leading from the background of the research, it is known that Company X has a formal experience programme which regularly conducts customer-experience surveys aimed to measure real-time client feedback about their experiences of Company X’s products, processes and service. In addition, a broad range of Human Resources (HR) programmes are provided, that include employee wellness, payroll, organisational development and employee relations, labour relations, learning and development, talent acquisition, recognition and events, communications and information systems, and employee engagement, to name but a few.

It has traditionally been the sole concern of HR departments to drive employee engagement throughout the organisation. However, with a growing awareness and influence on employee performance, customer service departments of late have

joined the discussion of interested parties considering its impact on the service environment. The challenge though, is that at present employee engagement sits on one side of the fence perceived to be the responsibility of HR, with customer experience on the other side of the fence the responsibility of the service department.

Whilst both areas are imperative to business success, they are not well coordinated across the business. It therefore stands to reason, in order to solve the issue of employee engagement, that Company X requires a holistic engagement strategy that incorporates both employees and customers.

The point of interest though, is if and what factors influence the relationship between employee engagement and customers’ experiences, and to what extent does climate and culture influence employee engagement influence and in turn customer experience and ultimately customer loyalty within Company X. Therefore, the challenge of this research is to address whether or not a causal association exists between employee engagement and customer experience, as well as the extent thereof. Determining the influence of employee engagement on customer experience is challenging, so much so that an all-inclusive customer experience construct has not been reached in the literature. Consequently this dissertation intends to investigate the research question as set out in 1.5.1 below.

1.5.1 Research question

The following question was posed as the primary research question: Are customer experiences influenced by employee engagement in a customer-centric climate and culture? In order to investigate the research problem, a theoretical framework was proposed to integrate the three constructs namely, customer-centric climate and culture, employee engagement and customer experience.

1.5.2 Theoretical framework

A theoretical framework is described as a study map or a conceptual model, assisting a researcher to make logical sense of the relationships as well as developing research questions or hypotheses (Sekaran, 2003:97; Kumar, 2011:349; Saunders, Lewis & Thornhill, 2012:61; Neuman, 2014:85). The authors argue a theoretical framework attempts to integrate vital pieces of information, in a rational manner that conceptualises a problem to be tested. A prescribed framework to measure the influence of employee engagement on customer experience could not be found

suitable for this dissertation. However, several models and frameworks collectively inspired and influenced the research framework in this dissertation which includes (Bowen & Schneider, 2014:6; Salanova et al., 2005:1219; Viljoen in Nienaber and Martins, 2016:44), with the Benchmark of Engagement Quotient (BEQ) and the Customer Engagement Quotient (CEQ) served as the basis to construct a theoretical framework for this dissertation as depicted in Figure 1.3 below. The Benchmark of Engagement Quotient (BEQ) model measures the interplay between assumptions and perceptions around constructs that contribute to the unleashing of the gifts, voices of individuals and contributions within an organisation (internal environment) Figure 1.3: Theoretical framework of the influence of employee engagement on customer experience

Sources: Adapted from Viljoen (quoted by Nienaber & Martins, 2016:110), Bowen and Schneider (2014:6) and Salanova et al. (2005:1217)

The Customer Engagement Quotient (CEQ) measures the interplay between service expectation and service experience, which is believed to lead to a better perceived and manifested customer experience (external environment). The two models combined with the two instruments utilised in this research enhanced previous research conducted in Company X. Both the Benchmark of Engagement Quotient (BEQ) and Customer Engagement Quotient (CEQ) models are discussed in more detail in Chapters 3, 4, 5 and 7 below.

1.5.3 Research objectives

In order to test the full theoretical framework, the following research objectives are set out and will guide the research process in this dissertation:

1) To investigate if a relationship exists between customer-centric climate and culture and employee engagement.

2) To investigate if a relationship exists between different levels of employee engagement.

3) To establish if an association exists between various levels of employee engagement and customers’ experience of the service interaction with the organisation.

4) To establish whether customers’ experience of the service interaction influences the total customer experience and consequently customer loyalty towards the organisation.

To test the full theoretical model as supported by the BeQ model of (Viljoen, 2009) and the combined CeQ model of Viljoen (2009), and Salanova, Agut & Peiró (2005:1217), two subsequent secondary research objectives were included:

5) To determine the effect of selected pre-requisites of customer-centric climate and culture.

6) To determine the effect of selected pre-requisites of employee engagement on three levels (individual, team and organisation).