The effect of customer satisfaction on the survival of SMEs in the grocery retail sector: the case of Harare, Zimbabwe

Abstract

Literature indicates that customer satisfaction has significant impact on different business performance metrics such as market share, sales revenue, shareholders value and gross profit margin. SMEs are encouraged to adopt and embark on customer satisfaction practices so as to maximize performance because profits and revenues are nothing more than the results of fulfilling customers’ expectations and needs. The study was aimed at establishing the effect of customer satisfaction on the survival of SMEs in the grocery retail sector in Harare Zimbabwe. The study was mainly quantitative, leveraging on an explanatory research design with a purposive sampling technique. Data was collected from multiple case studies using structured research questionnaires. Data was presented in form of charts, bar graphs and tables. Descriptive statistics and regression and correlation analysis were used. The findings show that there is no statistically significant relationship between customer satisfaction and SME survival in Harare as evidenced that SMEs do not keep record of their sales, customer complaints and customer retention information. This study recommends that SME owners and senior managers take part in business trainings and they should create a customer database