Association between Employee Motivation and Customer Retention: Empirical Findings

Employees play a vital role in retaining the customers. Companies allocate huge budget to create customer loyalty but often ignore the critical aspect of enhancing employee motivation. In the conditions of intense competition that companies operate in today, employees can play a very important role in winning customers’ hearts and minds. Unless the employees are motivated well they are least interested in motivating the customers that ultimately helps in retaining them. The study intends to find out the employee motivational variables that are followed in Mandovi Motors Pvt. Ltd, which will have an influence on employees positively in working towards retaining the customers. Motivated employee works towards attaining the organizational goals. The research has noted that the work culture of Mandovi Motors Pvt. Ltd has incorporated employee motivational practices and also customer loyalty programmes. There seems to be a strong link between Employee Motivation and Customer Retention through the observation and the data collection done by the researcher. Employee motivation gets influenced by extrinsic as well as intrinsic factors. Since the intrinsic factors are self driven, at the most extrinsic factors must be taken care of by the organizations to create a motivated workforce.