This week, we feature an article by Tarek Kamil, CEO and Founder of Cerkl, an internal communication software that helps teams connect. He writes about how employee engagement and customer experience can enhance business performance. Achieving success in business goes beyond offering quality products and services. Both employee engagement and customer experience are vital elements, […]
This week, we feature an article by Tarek Kamil, CEO and Founder of Cerkl, an internal communication software that helps teams connect. He writes about how employee engagement and customer experience can enhance business performance.
Achieving success in business goes beyond offering quality products and services. Both employee engagement and customer experience are vital elements, and with some effort, it isn’t difficult for companies to build meaningful synergy between them.
A telling study by Dimension Data reported that 84% of companies that improved their customer experience saw an uplift in revenue. The reality is that the connection (or lack thereof) between employee engagement and customer experience can seriously impact business performance. When organizations recognize the significance of nurturing a positive employee experience (EX) to enhance the customer experience (CX), it creates a powerful synergy that propels the company toward unprecedented success.
It’s important to identify the difference between customer experience and employee engagement. Only then can you relate to how the two affect each other.
Employee engagement refers to the emotional commitment and dedication that employees have towards their company or organization. On the other hand, customer experience encompasses all interactions and touchpoints a customer has with the company, primarily shaping their perceptions and loyalty. Customer experience demands that companies offer convenience, consistency, a demonstration of caring, customization of customers’ needs, and an ability to develop lasting connections with their customers.
The concept of employee engagement and customer experience working in tandem might seem abstract at first glance, but the connection is logical and evident. Harvard Business Review (HBR) shows there is a link between employee engagement and customer satisfaction.
When employees are engaged and motivated, they are more likely to deliver exceptional customer service. Engaged employees are not only productive, but they also exhibit enthusiasm and a genuine desire to create positive interactions with customers. These interactions almost always translate into improved customer experiences, fostering loyalty and advocacy.
Customers can sense when an employee (or company) is genuinely invested in their needs, leading to stronger relationships and higher customer satisfaction rates. In their 2009 meta-analysis presented by Gallup, Harter et al. found that business units scoring in the top 25% of engagement had customer ratings/loyalty 10% higher than business units scoring in the bottom 25% of engagement.
The relationship between employee experience and customer experience can be encapsulated in the term “CX EX synergy.” This concept recognizes that the level of employee engagement and satisfaction directly influences the quality of interactions between employees and customers. When employees feel valued, supported, and empowered within their roles, they are more likely to deliver personalized and empathetic service.
Research shows that people who report having a positive employee experience have 16 times the engagement level of employees with a negative experience. It also shows that they are eight times more likely to want to stay with a company.
Ultimately, a positive employee experience translates into customer experience. Firstly, engaged employees are more likely to have a deep understanding of the company’s products and services. It allows them to provide accurate information and valuable insights to customers. Secondly, when employees feel a sense of ownership and pride in their work, they are more inclined to go the extra mile to resolve customer issues and exceed expectations.
This proactive attitude can create memorable moments for customers, enhancing their perception of the brand. After a positive customer service experience, 89% of consumers report they are more likely to return and make another purchase.
Building a successful synergy between employee engagement and customer experience requires a holistic approach. Here are five strategies worth considering.
#1 Invest in Employee Development
Provide training and growth opportunities that align with both individual career aspirations and the organization’s goals. When employees see a clear path for growth, they are more likely to stay committed and engaged.
#2 Foster a Positive Work Environment
Prioritize a workplace culture that encourages open communication, collaboration, and recognition. When employees feel heard and valued, they are more likely to extend the same respect and consideration to customers.
#3 Empower Employees
Give employees the autonomy to make decisions that benefit customers. Empowered employees feel a greater sense of responsibility and are better equipped to address unique customer needs effectively.
#4 Collect and Act on Feedback
Regularly gather feedback from both employees and customers to identify areas for improvement. Addressing concerns and making necessary changes demonstrates a commitment to enhancing both experiences.
#5 Align Goals
Ensure that employee objectives are aligned with delivering outstanding customer experiences. When employees understand how their contributions impact customers, they are more motivated to excel.
The interdependence of employee engagement and customer experience cannot be understated. By nurturing a positive employee experience, businesses lay the foundation for better job performance and exceptional customer experiences. The CX EX synergy that emerges from this approach creates a virtuous cycle where engaged employees drive improved customer interactions that lead to enhanced loyalty, brand advocacy, and, ultimately, business success. Recognizing and embracing this synergy is not just a strategy; it’s a necessity in today’s competitive marketplace.
How do we define customer experience?
We can define customer experience with five Cs: clarity, consistency, convenience, caring, and customization. By embracing clarity in communication, upholding consistency, offering convenience, demonstrating caring, and providing thoughtful customization, businesses can cultivate lasting connections and elevate the customer experience to exceptional levels.
What is the relationship between customer and employee engagement?
Customer and employee engagement are interconnected aspects of business success. Engaged employees who are committed, motivated, and satisfied deliver better customer experiences. Satisfied customers, in turn, positively impact employee morale by validating their efforts. This symbiotic relationship between CX and EX fosters a virtuous cycle, enhancing overall organizational performance and promoting loyalty both internally and externally.
How does employee engagement affect customer experience?
Employee engagement significantly influences the customer experience. Engaged employees are more motivated, productive, and committed to providing excellent service. Their positive attitude and dedication translate into better interactions with customers, leading to improved satisfaction, loyalty, and, ultimately, a more positive brand image.
Tarek Kamil is a tech enthusiast and entrepreneur striving to create innovative solutions that positively impact the digital world. With a passion for blending technology and creativity, he aims to inspire and make a difference through his ventures.
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