From Employee Satisfaction to Customer Delight: Why Investing in Your Team Pays Off
Employee experience and customer experience are often viewed as two separate focus areas for businesses. However, research shows that improving the former significantly impacts the latter. In fact, studies have consistently found a positive correlation between employee experience and customer experience.
One such study conducted by the Harvard Business Review found that companies with high employee satisfaction scores had, on average, higher customer satisfaction ratings than those with lower employee satisfaction scores. This suggests that when employees feel valued and engaged, they are more likely to provide excellent service to customers, leading to positive customer experiences.
Another study conducted by Gallup found that businesses with engaged employees had a 10% increase in customer satisfaction ratings compared to those without engaged employees. The study also found that engaged employees were more likely to upsell and cross-sell, resulting in higher revenue and customer lifetime value.
A third study conducted by Forrester Research found that businesses with high employee engagement scores had a 20% increase in customer loyalty compared to those with low employee engagement scores. This shows that when employees are happy and committed to their work, they are more likely to create loyal customers who are willing to return and recommend the business to others.
Furthermore, businesses that invest in employee experience often see a return on investment in terms of revenue and profit. A study by Temkin Group found that companies with highly engaged employees had 22% higher profitability than those with low employee engagement. This suggests that investing in employee experience can lead to increased productivity and efficiency, resulting in higher profitability.
The data clearly shows that improving employee experience positively impacts the customer experience. Happy and engaged employees are more likely to provide excellent service, resulting in positive customer experiences, increased customer satisfaction, loyalty, and ultimately higher revenue and profit. Therefore, businesses should prioritize employee experience as a key factor in improving overall customer experience.
Citations:
Harvard Business Review - The Value of Happiness: How Employee Well-Being Drives Profits: https://hbr.org/2012/01/spotlight-the-happiness-factor
Gallup - Employee Engagement Drives Growth: https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx
Forrester Research - The Business Impact of Employee Experience: https://go.forrester.com/wp-content/uploads/Forrester-The-Business-Impact-of-Employee-Experience-September-2014.pdf
Temkin Group - Employee Engagement Benchmark Study: https://temkingroup.com/product/employee-engagement-benchmark-study-2016/
To Your Success & Prosperity,
Michael McMillan