The effect of customer orientation coaching on employee’s individual performance and financial and non-financial performance

Abstract

PurposeRecently, banks have focussed on teaching marketing skills, especially customer orientation. This issue, according to previous studies, has led to improved employee and bank performance. In this regard, Tejarat bank (an Iranian Bank) also organised specialised customer orientation courses for its employees with the help of the Iranian Scientific Marketing Association. Consequently, the purpose of this study is to examine the effect of customer orientation coaching on employee’s individual performance and financial and non-financial performance of the bank.Design/methodology/approachAccordingly, by using theoretical foundations, this study attempted to present a comprehensive conceptual and theoretical model on the effect of customer orientation coaching on employee and bank performance. The structural equation modelling was run to test the relevant hypotheses.FindingsThe results showed the significant effect of customer orientation coaching on employee performance either directly or indirectly. Customer orientation, competitor orientation, sales orientation and the long-term orientation of the employees were mediating factors between customer orientation coaching and employee performance. The effect of employee’s performance on the financial and non-financial performance of the bank was also significant.Originality/valueThese results help to understand the importance of coaching for developing customer orientation and perception about competitor orientation, sales orientation and long-term orientation of employees and their effect on individual and organisational performance.