Non-financial Controls and Customer Satisfaction in Microfinance Institutions Focusing on Wakiso District, Uganda
Authors: Dr. Henry Buwule Musoke & Dr. Rebecca Mirembe Nyonyintono
Abstract: Customer satisfaction is one of the most important and serious factors for success in today’s competitive environment. A satisfied customer is a need and demand for the survival and growth of any business and growing competition today. The purpose of this study was to investigate the influence of non-financial controls on customer satisfaction in microfinance institutions in Wakiso district, Uganda. A co-relational cross-sectional survey design was employed. Data was collected using questionnaires and interviews from 10 SACCOs, and, a sample of SACCO members, the board of directors, audit committee members, and members of staff. Documentary analysis was done to enrich the conceptualization of the problem and interpretation of data. Findings revealed that work rules and procedures are not collectively explanatory variables of customer satisfaction, while service quality was found to be a significant predictor of customer satisfaction. The combined non-financial controls (work rules and procedures and service quality) are also significant influential factors of customer satisfaction. Work rules and procedures although insignificant factors of customer satisfaction should be emphasized in SACCOs because they bolster a strong sense of solidarity and commitment towards organizational goals. Managers need to take care to deliver better service quality to attain maximum customer satisfaction. They should also stress the aspect of service quality of communicating with all stakeholders so as to deliver better service quality. Management of SACCOs should investigate to better understand how their customers think and respond to service quality because they are seeking to improve their customers’ satisfaction levels and consequently increase their economic participation in their institutions.