Effects of Customer Feedback Mechanisms on Service Improvement among Selected SMEs in Tanzania: A Case of Iringa Municipal Council

Author

Innocent Godwin Saria

Abstract

 This study examined the effects of social media feedback, complaint handling systems and direct customer interaction on service improvement among selected SMEs in Iringa Municipal Council. A convergent parallel mixed-methods design was adopted. Quantitative data were collected from 104 customer-facing employees drawn from 104 selected SMEs, while qualitative data were obtained through semi-structured interviews with eight SME owners and managers. Quantitative data were analysed using descriptive statistics, Pearson correlation and multiple linear regression in IBM SPSS Statistics Version 26; qualitative data were analysed thematically. The findings show that all three feedback mechanisms were positively and significantly associated with service improvement. Social media feedback correlated significantly with service improvement (r = .689, p < .01), complaint handling systems showed a significant positive association (r = .661, p < .01), and direct customer interaction recorded the strongest correlation (r = .742, p < .01). The regression model was statistically significant, F(3, 100) = 67.742, p < .001, and explained 67.0% of the variance in service improvement (R² = .670; adjusted R² = .664). Direct customer interaction was the strongest predictor (β = .417), followed by social media feedback (β = .302) and complaint handling systems (β = .257). The qualitative evidence reinforced these results by showing that prompt responses, active listening, follow-up communication and systematic use of customer input help SMEs identify service gaps and undertake corrective action. The study concludes that feedback mechanisms are most valuable when they are treated as integrated managerial processes rather than isolated communication channels. SMEs should strengthen digital monitoring, formalise complaint documentation and resolution procedures, and develop employees’ listening and communication capabilities.

Keywords

Customer feedback; social media feedback; complaint handling; direct customer interaction; service improvement; SMEs; Tanzania; Iringa Municipal Council

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