Happy Employees First -> Happy Customer Experience

Traditional belief is Output increases with increase in the input. Not necessarily this is the only way.  Four weeks ago I purchased a phone on the first week of the launch, from the company website. Had to contact the customer service for a replacement due to glitch on the screen. It took three weeks of multiple followups to have it replaced and each time customer service is contacted. So the perception of the best phone, best company and loyal to the company for 12 years dropped in span of three weeks.   “Customer Rating” dropped to negative, I was able convince same to my friends about the state of service. Few employees made my experience to change the once my best company as a benchmark for worse.

In this three-week customer loyalty dipped, company bench-marked as worst, word of mouth brought down few sales.  This is one instance. As a metaphor ‘N’ such incidents happen be in personal, professional and social. This “loss of opportunity” to the company may bring down the credibility score, commitment score, customer orientation score, professionalism score, etc there by bringing down the overall score.

In age of agility, engaging employees is one of most important factors for employees engaging customers.  Customers who love the company are true believers — say that they “can’t live without it.” They shop more often, buy more, tell others about it, and — most importantly are less price sensitive. Customers who hate the company spread negative emotions to stop others from doing business with – Gallup

Some more insights which highlights importance of “engaged employees” and engaged customer by the employees

  • Companies with Highly Engaged Workforces Outperform their peers by 147% in Earnings Per Share
  • Over a four-year period, improvements in employee engagement generated an estimated $82 million in profit growth.
  • Customers who are fully engaged represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth over the average customer. And when we look at engagement in specific industries, we find even more evidence of its impact
  • Companies that successfully engage their B2B customers realize 63% lower customer attrition, 55% higher share of wallet, and 50% higher productivity”
  • Customers who love your company — your true believers — say that they “can’t live without it.” They shop more often, buy more, tell others about it, and — most importantly – are less price sensitive. Customers who hate your company spread negative emotions to stop others from doing business with you
  • Customers form strong emotions about a company based on their experiences with people — and those emotions strongly influence their buying decisions.

“A highly engaged workforce means the difference between a company that outperforms its competitors and one that fails to grow.” According to Forbes, “Engaged employees lead to better business outcomes. In fact, according to Towers Perrin research companies with engaged workers have 6% higher net profit margins, and according to Kenexa research engaged companies have five times higher shareholder returns over five years.” Gallup states that employee engagement positively (or negatively) affects the following KPIs (key performance indicators):

  • Customer ratings
  • Profitability
  • Productivity
  • Turnover
  • Safety incidents
  • Shrinkage / theft
  • Absenteeism
  •  Quality of work

According to QuantumWorkplace, organizations that have highly “engaged employees” excel in the following metrics:

  • Profit
  • Revenue
  • Market Share
  • Stock Value and
  • Employee Retention

Continuous Feedback and providing an environment of trust, learning, empowerment are key to have engaged employee. This increases the output and the outcome of team beyond dependence on traditional belief of output / input relation.

A continuous feedback system is a necessary part of implementing continuous feedback. Because the nature of continuous feedback encourages the free expression of ideas, it needs a system to provide a framework for giving and requesting feedback. Without such a framework, managers and employees can lack the confidence to give feedback regularly and can struggle with how to frame their feedback.

Why should I adopt continuous feedback?

Despite the fact that 65% of businesses are still using annual appraisals, it’s well established that they don’t work. They’re inconsistent, demotivating and expensive in terms of time. Above all, there is no evidence that they improve employee performance, which after all should be the whole point. It’s time for a step change in performance management.

Engaged employees are the ones who make a difference in the customer experience. Businesses hoping to boost their customers’ experiences should start at the source by engaging their employees. Effective companies, they said, are choosing to focus on employee engagement because engaged employees are willing to go “the extra mile, work with a passion, and feel a profound connection to their company,” says Gallup.

Business could benefit from a continuous feedback system – Engaged employees


Thank You

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