Effect of Customer Services on Organizational Productivity (A Case Study of Fortunate Bread, Osogbo, Osun State)

In today’s competitive business environment, customer service has emerged as a critical determinant of organizational success, especially in consumer-driven sectors such as the bakery industry. This study examined the effect of customer service on organizational productivity with a focus on Fortunate Bread, Osogbo, Osun State, Nigeria. Anchored on the SERVQUAL model, the research explored how service quality and customer satisfaction influence productivity in a highly competitive and fast-moving consumer goods (FMCG) market. Using a descriptive and causal research design, data were collected from 98 employees selected from a population of 130 staff through purposive sampling. A structured questionnaire designed on a five-point Likert scale served as the main research instrument, and multiple regression analysis was employed to test the hypotheses. Findings revealed that both service quality (R = .672, R² = .451, p < 0.05) and customer satisfaction (R = .701, R² = .492, p < 0.05) had significant positive effects on organizational productivity, jointly explaining a substantial proportion of variations in productivity levels at Fortunate Bread. The results underscore the importance of proactive customer service practices such as responsiveness, reliability, empathy, and effective complaint resolution in enhancing efficiency, customer loyalty, and overall performance. The study concludes that customer service is not merely a support function but a strategic driver of productivity in the bakery sector. It recommends continuous employee training, structured customer feedback systems, and the adoption of simple digital solutions to sustain customer satisfaction and long-term competitiveness.