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MAKERERE UNIVERSITYCUSTOMER CARE SERVICES AND SALES PERFORMANCE
A CASE OF POSTA UGANDA
BY
KYALISIIMA MONICA
07/U/9654/EXT
A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY IN
FULFILMENT FOR THE AWARD OF BACHELORS DEGREE OF COMMERCE
MAKERERE UNIVERSITY.
JUNE, 2011
1
DECLARATION
I KYALISIIMA MONICA, here by declare that this research is my own original work
and that it has never been presented to any institution of higher learning for the award of
a Diploma or Degree.
Signature -------------------------------------------------------------
Name -------------------------------------------------------------------
Date ----------------------------------------------------------------------
i
APPROVAL
This is to certify that I Kyalisiima Monica carried out a research study under the title
“CUSTOMER CARE SERVICE AND SALES PERFORMANCE” a case of Posta
Uganda Limited under the supervision of:
Signature ----------------------------------------
Mr. Yusuf Kiwaala
(Supervisor)
Date ---------------------------------------------
ii
DEDICATION
This study with all the respect and affection is dedicated to my dear aunt Fridah, sister
Dorcas and my grandmother who have worked tirelessly to ensure my success
academically.
iii
ACKNOWLEDGEMENT
I thank the almighty God for his grace and love for me. This research would not have
been a success if it was not because of his love for me. To God is the glory.
My sincere appreciation goes to my supervisor Mr. Yusuf Kiwaala for his supervision,
advice, counseling and guidance plus the suggestions in all aspects for preparation of this
research report through the end.
Thanks go to my entire friends and family; Charles, Robert, Fiona, Mary, Priscilla, Loise,
Ronald, Noeline, uncle Johnson, aunt Joyce, aunt Sarah, my brother David, sister
Monica, uncle Bonny and the wife and to all my sisters and brothers for their tireless
efforts spent on me during the course.
Special thanks go to Posta Uganda limited staff who contributed materially and those that
dedicated their time to respond to my questionnaires.
Finally I will not forget the entire staff of Makerere University who guided me right away
from first year up to fourth year.
MAY GOD BLESS YOU.
TABLE OF CONTENTS
iv
DECLARATION..................................................................................................................iAPPROVAL........................................................................................................................iiDEDICATION...................................................................................................................iiiACKNOWLEDGEMENT..................................................................................................ivTABLE OF CONTENTS....................................................................................................vLIST OF FIGURES...........................................................................................................viiLIST OF TABLES...........................................................................................................viiiABSTRACT.......................................................................................................................ix
CHAPTER ONE..................................................................................................................11.0 INTRODUCTION.........................................................................................................11.1 Background....................................................................................................................11.2 .Statement of the problem..............................................................................................21.3. Research objectives......................................................................................................21.4 .Research questions........................................................................................................21.5. Purpose of the study......................................................................................................21.6 .Significance of the study..............................................................................................21.7.0. Scope of the study......................................................................................................31.7.1. Geographical scope....................................................................................................31.7.2. Content scope.............................................................................................................3
CHAPTER TWO.................................................................................................................4LITERATURE REVIEW....................................................................................................42.0. Introduction...................................................................................................................42.1. Definition of a customer...............................................................................................42.1.1. Customer care............................................................................................................52.1.2. Customer care service................................................................................................52.1.3. Strategies to improve customer service.....................................................................72.2.0. Sales performance....................................................................................................102.2.1. Determinants of sales performance.........................................................................112.3.0. Relationship between customer service and sales performance..............................112.4 Conclusion..............................................................................................................12
CHAPTER THREE...........................................................................................................13METHODOLOGY............................................................................................................133.0. Introduction.................................................................................................................133.1. Research design..........................................................................................................133.2. Study population.........................................................................................................133.3.0. Sampling..................................................................................................................133.3. 1.Design......................................................................................................................133.3.2. Sample size..............................................................................................................133.4. Sources of data............................................................................................................143.4.1. Primary data.............................................................................................................143.4.2. Secondary data.........................................................................................................143.5.0. Data collection method............................................................................................143.5.1. Questionnaires.........................................................................................................143.6.0. Data processing and analysis...................................................................................15
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3.6.1. Data processing........................................................................................................153.6.2. Data analysis............................................................................................................153.7.0. Limitations of the study...........................................................................................15
CHAPTER FOUR.............................................................................................................16PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS.................164.0. Introduction.................................................................................................................164.1. Descriptive statistics...................................................................................................164.1.1. Distribution of respondents by gender.....................................................................164.1.2. Distribution of respondents by age..........................................................................174.1.3. Distribution according to level of education...........................................................174.1.4. Distribution of respondents according to marital status..........................................184.1.5. Distribution according to experience.......................................................................194.2. Findings on core customer care services....................................................................204.2.1.Findings on whether post bus services are important...............................................204.2.2 Findings on what extent corporate mail service contributes to Posta’s sales...........204.2.3 Findings on how money order service increase sales of the company.....................214.2.4. Findings on whether Post Shop offers postage and gift services at minimum prices............................................................................................................................................224.3. Findings on the sales performance level in Posta.......................................................224.4. Findings on the relationship between customer care service and sales performance.234.5. Findings on how respondents commented on posta’s services..................................234.6.Findings on possible ways of improving sales performance.......................................24
CHAPTER FIVE...............................................................................................................25SUMMARY,CONCLUSIONS AND RECOMMENDATIONS......................................255.0. Introduction.................................................................................................................255.1. Summary of major findings........................................................................................255.1.1 Findings on core customer care services that improve sales....................................255.1.2 Findings on the sales performance level...................................................................265.1.3. Findings on the relationship between customer care service and sales performance...........................................................................................................................................265.2. Conclusion..................................................................................................................265.3. Recommendations.......................................................................................................27
REFERENCES..................................................................................................................28APPENDIX I: QUESTIONNAIRES................................................................................29...........................................................................................................................................29APPENDIX II : Findings on the relationship between customer care service and sales performance.......................................................................................................................33
vi
LIST OF FIGURES
Figure 1 : Distribution of respondents by Gender............................................................16Figure 2 : Distribution according to the level of education.............................................18Figure 3 : Findings on whether post bus services are important.....................................20Figure 4: Findings on whether post shop offers postage and gift services at minimum prices..................................................................................................................................22
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LIST OF TABLES
Table 1: Showing expected number of respondents.........................................................14
Table 2 : Distribution of respondents by age...................................................................17
Table 3 : Distribution according to marital status...........................................................19
Table 4 : Distribution according to duration.....................................................................19
Table 5 : Findings on what extent corporate mail service contributes to Posta’s sales.....21
Table 6 : Findings on how money order service increase sales of the company.............21
Table 7 : Findings on whether sales declined in Posta....................................................23
viii
ABSTRACT
The study was conducted in Posta Uganda targeting customers and employees.
The main objectives of the study were: to identify core customer care services that
improve sales performance, to establish the level of sales performance of Posta Uganda
and to establish the relationship between customer care service and sales performance.
The respondents were selected using random sampling and stratified sampling methods.
25 respondents were interviewed using questionnaires.
The findings showed that customer services like post bus, corporate mail services and so
on were provided but there was need to improve on the services in order to improve on its
sales.
Findings on the level of sales revealed that sales were not stable that is they keep on
falling and rising.
There was a strong relationship between customer care and sales performance.
Therefore, according to the study findings it was recommended that all managers be
sensitized and educated on the capabilities customer services so that they can
communicate intelligently to their lower employees. Employees should also be educated
on how to handle customers.
The company must utilize the existing information and technology to effectively gather
information to help all employees contribute towards customer service.
ix
CHAPTER ONE
1.0 INTRODUCTION
1.1 BackgroundCustomer care service is a set of activities undertaken by companies, organizations to
make service delivery easier for customers (Koolman 1986). Customer service is an
organizations ability to supply their customer’s wants and needs. Improving customer
service involves making a commitment to learning what our customer needs and wants.
According to (Mathieu 2001) customer care services like good after sale services, good
communication, convenience facilities, marching services with customers needs enhance
the quality of service delivery or customer activities where by they promote corporate
image and market capability hence promoting sales. Customer care centered companies
have the ability and willingness to bring the customer to the centre of the organization
(Whitely & Hessen 1997).
Sales performance is the accomplishment or achievement (in units and values) made by
an organization in selling its products in the market. To enhance sales growth for a firm,
management should continuously monitor customers changing tastes and preferences and
satisfy them better than competitor (Drucker 1996).
Posta Uganda has its headquarters along Kampala road. It has got branches allover
Uganda. Posta Uganda is a trade name of Uganda Posta limited which was registered in
1998 as a limited liability company to provide postal and related services for example
domestic and international money transfers, post bus services, expedited mail services,
post box rentals .These services have enabled Posta to remain relevant to many Ugandans
in fulfilling their communication needs. Posta Uganda like any other governmental
parastatal in 1997 was facing various problems relating from customer care to delayed
services which affected its sales. It is the most extensive provider of postal services in
Uganda having an extensive network of postal delivery outlets down to sub county levels
1
1.2 .Statement of the problem Posta Uganda has embarked on new strategies in customer services in order to increase
sales for example it holds a customer awareness week annually and last year it was held
from 22nd to 26th March 2010 at the main Post office. Despite of all these strategies, there
is customer dissatisfaction. According to the new Vision of Sunday 19 th September 2010
in an article written by Paul Tentena, Posta Uganda was reported to be in a sorry state
with persistent customer complaints over stolen mails, poor service delivery, rude staff
and huge debts. This clearly shows that Posta Uganda services are questionable hence
prompting the researcher to carry out an investigation.
1.3. Research objectives1. To identify core customer care activities that would improve sales performance at
Posta Uganda.
2. To establish the level of sales in Posta Uganda.
3. To establish the relationship between customer care service and sales
performance.
1.4 .Research questions1. What are the core customer care services that would improve sales performance?
2. What is the sales performance level of Posta Uganda?
3. What is the relationship between customer care service and sales performance?
1.5. Purpose of the studyThe purpose of the study is to establish the relationship between customer care service
and sales performance. The study is intended to find out whether or not customer service
is serving its intended purpose of bringing a positive change in sales performance.
1.6 .Significance of the studyThe study will provide relevant literature to academics and other researchers to widen
their knowledge of the subject (customer care service and sales performance) .It will be
very important to other researchers because it will be used as reference made after
making prior analysis on the variables as literature review.
2
The study helps identify the problems in the organization and possible solutions to those
problems. It will help reveal some areas that need further research and suggestions so as
to understand the effectiveness of customer care service on sales performance.
The findings and recommendations of the study will provide information to Posta Uganda
on how efficient it can deliver to improve sales.
1.7.0. Scope of the study
1.7.1. Geographical scopeThe study will be carried out at the Posta-Uganda headquarters in Kampala. This was
chosen because it is the biggest branch in Uganda.
1.7.2. Content scopeThe study will be confined to customer service as an independent variable and sales
performance as a dependent variable.
1.7.3. Time scope
The research will cover a period of four years that is from 2007 to 2011.
3
CHAPTER TWO
LITERATURE REVIEW
2.0. IntroductionThis chapter provides a review of existing literature on customer care service and sales
performance. Analysis has been made basing on different authorities and a broad view of
customer service practices.
2.1. Definition of a customerThis is a person or organization that utilizes the services of a certain business
establishments. According to Couther (1995), a customer is an individual or organization
that buys something from shop or bussiness.Whether he has bought something small or
big, a person still remains a customer. Therefore a customer is a foundation on which a
market is built.
Customers may fall into one of three customer groups:
Existing Customers who have purchased or used the company’s products and/or services
within a designated period of time. For some organizations the timeframe may be short,
for instance, a restaurant may only consider someone to be an existing customer if they
have purchased within the last couple of months. Other companies may view a customer
as an existing customer even though if they have not purchased anything in the last few
years, for example, a computer manufacturer. Existing customers are extremely
important since they have a current relationship with the company, and they give the
company a reason to remain in contact with them. They represent the best market for
future sales, especially if they are satisfied with the relationship they presently have with
the company. Getting these existing customers to purchase more is significantly less
expensive and time consuming than finding new customers, mainly because they are
satisfied with the company. They should be easy to reach with promotional appeals such
as discounts for a new product.
Former Customers who previously purchased from your company, however, they are not
considered and Existing Customer anymore because they have not purchased within a
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certain timeframe. In most cases it is due to competition or because they did not receive
good customer service.
Potential Customers who have yet to purchase, but have the requirements to eventually
become Existing Customers. They have a need for a product, possess the financial means
to buy it, and have the authority to make a buying decision.
By understanding the different customer types, it is clear to see that it is not only
marketing or sales that should be concerned; it should also be customer service. An
Existing Customer might turn into a Former Customer if they receive poor customer
service. A former customer will most likely never come back due to poor customer
service. A Potential Customer might be put off if they read any negative blogs or hear
bad comments. Bad word of mouth can potentially kill new customers.
2.1.1. Customer careAccording to Burton and Lisa (1994), customer care is about exceeding the customer’s
expectations. The staff of different organizations gets to know the customers expectations
through communication, having accuracy in service delivery and acting as promptly as
possible.
According to development and micro finance service (2006), customer care is a
management design of considering a customer as an important stakeholder in the
operation of any project and meeting his or her expectations.
2.1.2. Customer care service
Customer service is the provision of service to the customers before, during and after a
purchase. According to Turban et al (2002)"Customer service is a series of activities
designed to enhance the level of customer satisfaction that is the feeling that a product or
a service has met the customer expectations.” Its importance varies by product, industry
and customer; defective or broken merchandise can be exchanged, often only with a
receipt and within a specified time frame. Retail stores will often have a desk or counter
devoted to dealing with returns, exchanges and complaints, or will perform related
functions at the point of sale.
5
From the point of view of an overall sales process engineering effort, customer service
plays an important role in an organization's ability to generate income and revenue.From
that perspective, customer service should be included as part of an overall approach to
systematic improvement. A customer service experience can change the entire perception
a customer has of the organization.
Some have argued that the quality and level of customer service has decreased in recent
years, and that this can be attributed to a lack of support or understanding at the executive
and middle management levels of a corporation or a customer service policy. To address
this argument, many organizations have employed a variety of methods to improve their
customer satisfaction levels.
According to Parasuraman (1998), customer service is a supplement that accompanies the
core offering regardless of whether the core is tangible or intangible.The importance of
customer service is emphasised in the following quotation “Bussiness to Bussiness
marketers are increasingly argumenting their core, offering with supplementary services
eg consulting training of customer-firm personel to achieve competitive differentiation
and advantage.”
Customer Service covers a vast array of support functions. It can be associated with
technically supporting the customer, taking orders, collecting payments, booking flights,
etc. The rapid resolution of customer complaints about quality, defects, and delivery is
essential. Customer service can either save or lose the account based on how the
situation is handled. They also know the everyday problems customers face and learn
more about product strengths and weaknesses than anyone else in the company. They
will then be able to provide input to the design engineers, who can then make future
products easier to use. In fact, customer service trends should be the first item discussed
during management meetings.
On the other hand, word of mouth about bad customer service spreads just as it does
about a good product. A potential future customer might not buy the product or service
based on just a few negative comments, blogs, etc. Poor sales and possible churn (losing
6
customers) can have nothing to do with the quality of the product or the sales-force
selling the product, but poor customer service. Good customer service, however, can
lead to better sales and retaining customer loyalty, thus increasing company longevity.
Customer service is more than just supporting a customer, it can be a tool to improve
sales or be the culprit of financial loss.
Even though customer service might fall under sales or marketing’s responsibility, it can
also be considered part of the back office operations group.
Training, financial support, sales promotion, information and convenience facilities are
customer services that are in line with Mathieu’s (2001) definition of customer service.
2.1.3. Strategies to improve customer service
Improving customer service should not be that difficult. It can happen if organizations
reconsider certain business strategies. The following eight strategies are very important
to improve customer service:
1) Incorporate in business planning: The quantum and nature of service requirements are
dependent on the activities of many other functions. Organizations should incorporate
customers' service requirements into all aspects of business activities like product design,
procurement, production, handling, pricing, communication, people, and culture. This
would help organizations to prepare better for service eventualities and at the same time
make customer service the responsibility of the entire organization.
2) Change attitude to service: Despite being a critical business activity, customer service
function does not command the same respect that many other functions do. Many
perceive it to be dirty, menial, and unpleasant. Service center appearances and resources
are always far inferior, especially to that sales and marketing. If an organization treats the
service function in this manner, customers are likely to get the same treatment from the
service function.
7
Organization's attitude to service is a reflection of its attitude to customers. Management
has to go far beyond providing mere lip service if the rest of the organization has to
respect customer service and customers.
3) Integrate with marketing: Customers are an important marketing resource. They are
the most credible brand ambassadors, their word of mouth recommendation is far more
effective than all other marketing activities put together. Given its importance to
marketing, organizations should make marketing solely responsible for customer care and
if necessary create a separate customer marketing function to protect, nurture, and
leverage its core assets (customers) far more productively. Integrating it with core
marketing will also remove the stigma associated with service.
4) Shed the profit center approach: Many organizations try to make a profit through
customer service. In a profit center approach, revenue-generating activities like sales of
maintenance contracts, spares, and expensive call charges become more important than
the aforementioned business objectives. Selling at low margins is normally the reason for
the profit center approach. Attempting to increase profit through service would anyway
not work as customers expect service charges also to be low if the product purchase price
was low. Expensive service charges would also force customers to choose cheaper third
party service providers.
Brand and business objectives should be the only purpose of the customer service
function. The collective value of these business measures, in near term and long term,
would always be higher than the profits made from normal service activities. A profit
center or cost center approach, disregarding business objectives, would be detrimental to
the brand.
5) Adopt retention pricing: Product pricing should include the cost of acquisition and the
cost of retention including the service cost. Discounting the service and retention cost to
make the sale price attractive would only force the brand to recover the lost margin
through subsequent transactions.
8
It is wrong to believe that customers do not deserve good service just because the sale
price was low. Every customer, irrespective of the price that he pays, expects good
service. The product price should therefore, have a sufficient margin to meet those
expectations.
6) Manage expectations: Customers have explicit and implicit service expectations.
Explicit expectations are formed basis the claims and promises made by the brand at the
time of purchase. The brand has complete control over explicit expectations. Implicit
expectations formed basis the customers' perception of brand image, stature, reputation
and the price premium they pay for a brand are far more difficult to gauge and manage.
Most often organizations measure only the explicit commitments. Failure to identify and
measure implicit expectations is a big reason for the gap between its understanding of the
quality of service rendered and customers' perception of the service received. Customers'
perception of service will improve only when both these expectations met.
7) Recognize the role reversal: Brands make an emotional pitch to sell but provide
service by the rulebook. Customers though, buy rationally but react emotionally to
product and service failures. Recognizing this role reversal will help brands to appreciate
the customer's pain better and adopt an appropriate service response. Brands should
remember that they are not dealing with failed products but with people's emotions
caused by failed products. An emotional approach to service, similar to the sales pitch,
might work better than a rational response.
8) Focus on customers' convenience; not yours: Most service facilities and procedures are
not customer friendly. Service centers are far and few, the locations are remote, phone
lines are always busy, the service center timings always conflict with customers' work
hours, and the waiting time at the service center is invariably long. Further, asking such
aggrieved customers to fill lengthy forms, answer questions (often interrogatory and
structured to make the customer feel that he or she is responsible for the problem), wait
inordinately, listen to policies and rules is inconsiderate and humiliating.
9
These inconveniences dissuade customers from choosing company service. Removing
such irritants, besides improving customer experience, would also encourage more
customers to choose company service over third party service. Increase in service
revenue because of more customers choosing company service should compensate for the
increase in cost, if any, of providing service at customers' convenience
2.2.0. Sales performanceSales performance is the core component of stratum suite and comprehensive model that
allows managers to analyze sales and inventory levels and track profitability in order to
meet internal goals and streamline the supply chain. One of the primary goals of most
sales managers is to increase the performance of the firm’s total sales (Brashear et
al1998, Doyle and Wong 1998). The determinants of performance include customer
services such as training (Mathieu 2001), market capability (Koch 1997, Vorhies, Harker
and Rao, 1999) and corporate image (Gotsi and Wilson 2001).
However sales performance is not the only performance measure. Profitability has been
mentioned as a performance measure used by most organizations (Doyle and Wong
1998). Indeed both the academic literature and the perspectives of managers normally
view a business as successful if it achieves sound financial performance and enhances its
position in the market place (Doyle and Wong 1998). The reason as to why sales
performance was chosen is that if well managed increased sales lead to increased profits.
Any company that sells products to customers uses a form of sales performance
measurement to evaluate an employee’s quality of work and help pinpoint development
areas. Sales performance uses raw data concerning a number of customers a sales
associate speaks to compared with the number of actual sales. By reviewing the sales
performance manager can determine its strengths and weaknesses. It also indicates the
rate of customer loyalty to the business or specific employee. Customer loyalty refers to
customers who regularly purchase products from those businesses and refer other
customers to store. Enhancing sales performance can automatically enhance the number
of loyal customers. Meeting monthly sales quotas is another aspect of sales performance.
10
Setting monthly goals for each employee based on her past selling records can help
determine if she is sharpening her sales techniques.
2.2.1. Determinants of sales performanceChurch et al (1985) categorized six determinants of sales performance and these include;
1. Role perception. Sales people’s levels of performance greatly depend on their
perceptions and understanding of their roles.
2. Aptitude. This is defined by inherent acquired ability, empathy and soon has
advocated essential ingredients in above average sales performers.
3. Skill. A composite variable of listening, presentation, persuasion correlates greatly
with sales performance.
4. Motivation. A factor linked to performance though the ability to measure is so
much recent.
5. Organizational and environmental factor such as the range and complexity of
these factors as expected, they do provide some strong consistent relationship to
performance.
6. Personal variables have long been suggested and measured of their effect on sales
performance. Results do exhibit some strong and consistent relationship.
2.3.0. Relationship between customer service and sales performance.According to Mulder (2001), training by imparting knowledge and skills makes
employees better performers’ hence sales performance of Posta Uganda can be enhanced
if they offer relevant training to their dealers.
Smith and Sinha (2001) assert that sales promotion provides long-term strategic
advantages as well as short-term flexibility whereas Lucas (1996) stated that when
properly planned and executed with integral contributions from all relevant departments,
trade promotions can contribute to expanding the sales base.
Porter and Millar (1985) state that information technology offers organizations the
opportunity to construct customer led database which may lead to improved levels of
service quality by building long term relationship or increasing market share (Fletcher et
al 1992).
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2.4 Conclusion
Management needs to use a number of customer service strategies for example training,
financial support, sales promotion, communication and training facilities and
convenience facilities in order to increase its sales.
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CHAPTER THREE
METHODOLOGY
3.0. IntroductionThis chapter attempts to acquit the researcher with the context and methods of research of
the study. It hopes to provide a background against which the findings of the study will
be assessed regarding their validity, reliability and conclusion reached. The study will
concentrate on research design, study population, sampling design, procedure and size,
source of data, collection instruments, data processing and analysis and limitations of the
study.
3.1. Research designA combination of descriptive and analytical research will be used to carry out this study
because the research is concerned with establishing the relationship between customer
care service and sales performance.
3.2. Study populationSince the study will out at Posta Uganda head quarters in Kampala, the study population
will include the management (top and lower management), employees and its customers.
3.3.0. Sampling
3.3. 1.DesignThe researcher will use random and stratified sampling methods in order to obtain
appropriate data for the study because these methods are considered most appropriate due
to the nature of the study.
3.3.2. Sample size A sample size of 25 respondents including top and lower level management, employees
and customers of Posta Uganda limited will be selected.
13
Table 1: Showing expected number of respondents.
Nature of respondents Number of respondents
Management staff (Top) 4
Lower management staff 6
Customers 15
Total 25
3.4. Sources of dataThe study was carried out using primary and secondary data.
3.4.1. Primary dataPrimary data will be collected from the staff of the sales operation department at Posta
Uganda headquarters as well as its management. Data will be collected by use of
questionnaires.
3.4.2. Secondary data.Secondary data sources will include magazines, news letters, reports, internet, relevant
text books, research abstracts, journals and publications from various libraries.
3.5.0. Data collection methodData from the field will be obtained using the following data instrument;
3.5.1. QuestionnairesData will be collected using questionnaires. The questions asked will concern general
information on customer care service and sales performance. The researcher will deliver
questionnaires to the respondents and they will be self administered where by the
researcher will collect them later after completion. The questionnaires are designed using
14
likert scale and will be simple worded, relatively short but comprehensive so as to
facilitate a high response rate and compliance of clients.
3.6.0. Data processing and analysis
3.6.1. Data processingData collected from the field is to be checked and edited for completeness and accuracy.
A variable will be created to identify companies and dealers who will respond to the
questionnaires that will be distributed. Data will be edited by use of Microsoft word so as
to enhance the validity, accuracy, relevancy and correctness of the findings.
3.6.2. Data analysisData will be cleared, coded and manipulated. Descriptive statistics using the frequencies
and percentages will be used to show the levels of existence of customer service.
3.7.0. Limitations of the study1. The researcher has no sponsor to finance the study and as such has to limit the
geographical scope of the study to Kampala city.
2. The researcher anticipates lack of money to cater for scholastic materials,
transportation costs, type setting and printing.
3. Time constraint because of limited time with limited skills, the researcher anticipates
some discrepancies in the final report.
4. Some of the respondents will think that the information given will leak to competitors
hence may not give out information to their fullest.
15
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS
4.0. IntroductionThis chapter deals with the presentation and analysis of collected data on customer care
service and sales performance in Posta Uganda. Tables, frequencies, figures and
percentages have been used to interprete the findings in an attempt to asses the
relationship between customer care service and sales performance.
4.1. Descriptive statistics
4.1.1. Distribution of respondents by gender.The respondents were interviewed on their sex. The researcher wanted to know the
number of male and female who responded and which group had a high response rate.
The findings were illustrated in the figure below;
Figure 1 : Distribution of respondents by Gender
Source: Primary data.
The study revealed that 44% were male and 56% were female. This implied that there
was no gender bias in the study as shown in (figure 1) above.
16
4.1.2. Distribution of respondents by ageRespondents were interviewed on their age. The age was classified into a range that is
between 16-24, 25-36, 37-44 and 45 and above. The researcher wanted to find out
whether the people he was interviewing could understand what to do. The findings were
illustrated in the table below;
Table 2 : Distribution of respondents by ageAge Frequency Percentage
16-24 8 32
25-36 4 16
37-44 8 32
45 & above 5 20
Total 25 100
Source: Primary data
From the table above, 32% of the respondents were between 16 and 24 years of age, 16%
were between 25 and 36 years of age, 32% were between 37 and 44 years and 20% were
above 45 years. This implied that the respondents were mature enough to answer
questions in the questionnaires.
4.1.3. Distribution according to level of education.Respondents were asked about their level of education that is if they had certificates,
diplomas, degrees masters and PhDs. The researcher wanted to find out the capacity of
the respondents to answer the questions. The findings were illustrated below;
17
Figure 2 : Distribution according to the level of education
Source: Primary data
According to figure 2, majority of the respondents are diploma holders which accounted
40%, certificate holders were 28%, degree holders were 24%, master holders were 8%
and none was a PhD holder. This implied that respondents were able to read and
interprete the questionnaires presented to them.
4.1.4. Distribution of respondents according to marital statusRespondents were asked on whether they were single, married, separated or widow. It
was asked to identify the stability of these people in their work and the findings were
illustrated in the table below:
18
Table 3 : Distribution according to marital statusStatus Frequency Percentage
Single 10 40%
Married 12 48%
Separated 3 12%
Widow 0 0%
Total 25 100%
Source: Primary data
From the table above, 40% were single, 48% were married, 12% had separated and there
was no widow. This implied that most respondents were stable in the work they did.
4.1.5. Distribution according to experience.Employees were interviewed on the time they had spent working in Posta Uganda. The
researcher wanted to find out if the information got was reliable basing on the experience
the respondents had. The findings were illustrated as follow;
Table 4 : Distribution according to experience.Duration Frequency Percentage
6months-2years 4 16%
3-5 years 6 24%
6-8 years 10 40%
Above 8 years 5 20%
Total 25 100%
Source: Primary data
From the table above, 16% of the employees had spent between 6 months and 2 years in
the company, 24% between 3 and 5 years, 40% between 6 and 8 years and 20% had spent
above 8 years. This implied that information got can be relied on since respondents have
been in the company for a long time.
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4.2. Findings on core customer care services
4.2.1.Findings on whether post bus services are important.The researcher asked the respondents on whether Posta Bus Services offered were
important. The researcher wanted to find out whether the bus services offered by the
Company were relevant and helped in retaining customers of Posta Uganda. The findings
were illustrated in the table figure below;
Figure 3 : Findings on whether post bus services are important
Source: Primary data
Results from figure 3, indicate that 36% agreed that post bus services are important and
64% disagreed. This implied that the services are provided but they are less important
and therefore they have contributed less to the sales of the company.
4.2.2 Findings on what extent corporate mail service contributes to Posta’s salesThe respondents were asked to what extent corporate mail service contributed to Posta’s
sales because the researcher wanted to know if corporate mail service contributed to the
sales level and what extent. The findings got were illustrated in the table below:
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Table 5 : Findings on what extent corporate mail service contributes to Posta’s sales.According to table 5, 56% of the respondents agreed, 8% were not sure and 36%
disagreed. This implied that corporate mail service contribute a large proportion of the
company’s sales.
4.2.3 Findings on how money order service increase sales of the companyThe researcher asked if money order service increases sales of Posta. Because the
researcher wanted to know the extent at which the service contributes to the company’s
sales.
Table 6 : Findings on how money order service increase sales of the companyOption Frequency Percentage
Strongly agree 2 8%
Agree 2 8%
Not sure 1 4%
Disagree 5 20%
Strongly disagree 15 60%
Total 25 100%
Results from the table indicate that 16% agreed that money order service increase
sales of the company, 4% were not sure and 80% disagreed. This implied that money
order services are rarely provided.
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Option Frequency Percentage
Strongly agree 2 8%
Agree 12 48%
Not sure 2 8%
Disagree 6 24%
Strongly disagree 3 12%
Total 25 100%
4.2.4. Findings on whether Post Shop offers postage and gift services at minimum prices.The researcher asked the respondents whether the post shop offered postage and gift
services at minimum prices because he wanted to know if this service fully contributed or
improved on the sales performance level of Posta Uganda. The findings were illustrated
in the figure below;
Figure 4: Findings on whether post shop offers postage and gift services at
minimum prices.
Source: Primary data
Results from figure 4 indicate that 72% agreed that post shop offers postage and gift
services at minimum prices whereas 24% disagreed and 4% were not sure. This implied
that the company provides postage and gift services at minimum prices. This attracts
more customers and improves on the company’s sales.
4.3. Findings on the sales performance level in PostaRespondents were asked on whether the sales revenue declined in Posta Uganda. The
researcher asked such a question in order to confirm the sales level in Posta Uganda. The
following illustration showed the findings got from the question above;
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Table 7 : Findings on whether sales declined in Posta.
Option Frequency Percentage
Strongly agree 9 36%
Agree 6 24%
Not sure 4 16%
Disagree 2 8%
Strongly disagreed 4 16%
Total 25 100%
Source: Primary data
According to the table above, 60% agreed that sales reduced and 16% were not sure
whereas 24% disagreed. This implied that sales targets are not met which is brought
about by failure to provide a variety of customer care services.
4.4. Findings on the relationship between customer care service and sales performance.The respondents were asked on whether sales performance depends on customer care
services. This was asked in order to find out the relationship between customer care
service and sales performance.
The corelation between customer care service and sales performance was 0.837. This
implied that there was a strong relationship between the customer care service and
sales performance in Posta. Therefore 83% of the sales performance is contributed
by the nature of customer care service and the other percentage is determined by
other factors. This was illustrated in the table on APPENDIX II.
4.5. Findings on how respondents commented on posta’s services.Respondents were asked to comment on Posta Uganda services in order to find out if
the services provided were favourable.
According to results got from this questionare, some respondents praised the
services as being reliable, convinient, efficient and favourable whereas a bigger
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percentage complained about the services. To them Posta offers poor service
delivery, there is delayed mail, staff is rude and many others. This implied that the
company still has the problem of customer care and steps should be taken before it
can be kicked out of the industry.
4.6.Findings on possible ways of improving sales performanceRespondents were asked to state possible ways of improving the sales performance
of Posta. This was asked because the researcher wanted to know if the respondents
were aware that the sales could be improved and how.
The following ways were given by the respondents forexample advertisements on
products sold should be made, set targets and make sure they are met, put emphasis
on customers by giving them the possible services that they need.
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CHAPTER FIVE
SUMMARY,CONCLUSIONS AND RECOMMENDATIONS5.0. IntroductionThis chapter contains a summary of conclusions that contains a summary of
conclusions and recommendations that are based on the findings of the study .
5.1. Summary of major findings5.1.1 Findings on core customer care services that improve salesThe findings revealed that Posta uganda offers a variety of services that improve
sales forexample post bus services, corporate mail services, money order services,
postage and gift services being sold at minimum prices. From these services postage
and gift services offered have contributed a large prorpotion of posta’s sales
compared to other services offered.
The findings showed that Post Bus Services oferred at Posta Uganda were important
towards the contribution of the company’s sales though to a lesser extent.
In addition, the findings revealed that customer care services are a concern to every
one in the organization. This relates with the findings of Kotter (1998) who noted
that it is the customer who determines business and it is a customer and him alone
who through paying for a good or service converts economic resources into wealth.
Furthermore, the findings revealed that profitability and sales of the organization
increase due to good customer care services. This relates to findings of MC Donnel
(1988) who emphasized that good customer service comes in all shapes and size no
matter what size of the business.
The findings also revealed that customer care services increases the revenue and
income of the organiztion. That is in line with the findings of Drucker 1995 who
noted that the leading management Schollar argues that the sole purpose of a
business is not to get profit but to create customer and keep him/her because it is the
customer who determines what a business is.
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5.1.2 Findings on the sales performance level.Findings revealed that the level of sales were not stable meaning the trend was rising
at some point and falling at some other point. This could be attributed to inefficiency
in customer care services. For example services like corporate mail which would
have realised high revenues to the Company is affected by delayed mail delivery and
mail violate. This has brought in the level of sales unstability.
5.1.3. Findings on the relationship between customer care service and sales performanceFindings revealed that correlationcoefficient is 0.837 which is an indication that
customer care service has a strong impact on sales performance. A strong correlation
coefficient is an indication that the two variables are strongly related. The regression
of 0.837 means that the variables are significantly related and thus depend on each
other.
5.2. ConclusionBased on the findings of the study, the following conclusions have been drawn;
There are variety of customer care services that improve sales performance for
example post bus services, corporate mail service, money order service, postage and
gift services. However more services should be introduced. Those that already exist
should be polished for better sales.
The study findings show that the two variables are related because of the positive
corelation coefficient of 0.837 means that the relationship is strong and therefore the
firm needs to look at this factor if sales performance is to improve.
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5.3. RecommendationsSince there is no clear policy and procedure followed in the customer service, the
following are recommended;
All managers should be sensitised and educated on the capabilities of customer
services so that they can communicate intelligently to their lower emloyees.
Employees of the company should further be educated on how to handle customers
for example greeting their customers with a smile.
Creativity should be encouraged such that a wide experience of staff is put to use in
designing the policies of the department.
The company must utilise the existing information and technology to effectively
gather information to help all employees contribute towards customer service. The
company should recruit knowledgeable staff for all departments to assist in proper
provision of customer service.
5.4. Areas for further research
Further study should be made on other factors that affect sales performance.
Study should also be made on the effect of customer care services on sales
performance.
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REFERENCES
1. Paajanen, George. "Customer Service: Training, Sound Practices, and the Right Employee." Discount Store News. September 15, 1997.
2. Turban, Efraim (2002).Electronic commerce: A managerial perspective. Prentice Hall.
3. Vorhies,WD,Harker M and Rao c.p(1999) “The capabilities and performance advantages of market driven firms”.
4. Mathieu(2001).Service strategies within manufactuting sector:benefits,costs and partership.
5. Parasuraman(1998), “Customer service in bussiness to bussiness markets:An agenda for research.
6. Gotsi, M & Wilson,Am( 2001).Corporate reputation.
7. Church GA (1985).The derterminants of sales person performance.
8. Lisa & Burton(1994).How to give exceptional customer service.
9. Mulder, M, (2001) “customer satisfaction with training programs”.
10. Lucas ( 1996 ) “in store trade promotons-profit or loss”.
11. Porter & Millar (1985) : How information gives you competitive advantage.
12. Doyle &Wong (1998): Marketing and competitive performance .
13. Internet google search engine.
14. Kotler Philip,marketing management 2nd edition 1995 mackmilliancompany london.
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APPENDIX I: QUESTIONNAIRES
MAKERERE UNIVERSITY
QUESTIONNAIRES FOR EMPLOYEES AND CUSTOMERS
Dear respondent,
I am a 4th year student offering Bachelor of Commerce External (Accounting option). Iam
conducting a survey on customer care service and sales performance in Posta Uganda
Limited. This exercise is purely academic and it is actually a partial requirement by
Makerere University for the award of a Bachelors degree. Please spare a few minutes of
your time and answer the following questions because the information provided will be
treated with the highest confidentiality and shall not be put to any other use other than the
one stated above.
SECTION A
Tick where it is appropriate
1. Gender
A. Male B. Female
2. Age range
A. 16-24 B. 25-36 C. 36-44 D. 45 years & above
3. Level of education
B. Certificate B. Diploma C. Degree
D. Masters E. PhD
4. Marital status
A. Single B. Married C. Separated D. Widowed
5. How long have you been working with Posta Uganda?
A. 6 mths –2 yrs B. 3 -5 yrs C.6-8 yrs D.Above 8 yrs
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SECTION B
CORE CUSTOMER CARE SERVICES
STRONGLY AGREE SA
AGREE A
NOT SURE NS
DISAGREE D
STRONGLY DISAGREE SD
OPTIONS SA A NS D SD
6. Post bus services offered are important
7. Corporate mail services offered contribute a larger proportion of sales.
8. Posta Uganda offers money order services which increase sales of the company.
9. The Post shop offers postage and gift services at minimum prices.
10. After sale services offered contribute more of the company’s sales.
SECTION C
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SALES PERFORMANCE LEVEL OF POSTA UGANDA
OPTIONS SA A NS D SD
10. Sales performance declined for the last three years.
11. There is timely service delivery which improves sales level.
12. Sales performance level is increased by sales maximization.
13. There is regular stock taking and record of sales.
SECTION D
RELATIONSHIP BETWEEN CUSTOMER CARE SERVICE AND SALES
PERFORMANCE.
OPTIONS SA A NS D SD
14. Sales performance depends on customer care
services
15. Customer care services increase each year in order
to maximize sales.
16. Good customer care services results into better
sales performance
17. There is a strong relationship between customer
care service and sales performance.
18. According to your own description of customer care service, how would you
comment on Posta Uganda services?
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19. State possible ways of improving the sales performance of Posta.
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THANKS FOR YOUR COOPERATION
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APPENDIX II : Findings on the relationship between customer care service and sales performance
Option Customer
care service
X (Table 9)
Sales
performance
Y(Table 12)
XY X2 Y2
Strongly
agree
11 9 99 121 81
Agree 7 6 42 49 36
Not sure 1 4 4 1 16
Disagree 4 2 8 16 4
Strongly
disagree
2 4 8 4 16
Total 25 25 161 191 153
The equation for the correlation coefficient is:
Where, X= Independent variable ( customer care services)
Y= Dependent variable (sales performance)
r =0.837
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