Balanced Scorecard Utilization Perceived Effect on Customer Satisfaction

Abstract

The study reviewed management perception of the effect of Balanced scorecard utilisation on customer satisfaction. Customer satisfaction is a lead cause of financial performance and low customer satisfaction will ultimately reflect in the financials of any organisation. The study used the survey technique to elicit information on the effect of Balanced scorecard on customer satisfaction. Ten companies in the consumer goods industry were sampled and eight respondents were contacted per company. It was found that the balanced scorecard had a significant effect on customer satisfaction at a 5% level of significance. The study therefore recommended that management tie the metrics that affect customer satisfaction closely to the organisational objectives to ensure that these are measured and where there is dissatisfaction in the products/services, remedial actions are easier to identify and carried out to restore organisations to a favourable light with customers.

Keywords: Balanced Scorecard Utilisation, Customer Satisfaction, Financial Performance, Consumer Goods Industry