How Engaged Employees Enhance Customer Experience

Companies with highly engaged employees achieve 22% greater profitability compared to their competitors. This is a powerful statistic highlighting the impact of employee engagement on business success. But how exactly does this translate into real-world results?

To have a fair understanding of it, I will just give a hypothetical example.

Now imagine Sarah, a customer service representative at a bustling telecommunications company. Sarah is genuinely invested in her work. This was possible due to the company's supportive culture and knowledge shared to her by her peers. This has helped Sarah tackle queries effectively and with enthusiasm and empathy. When a frustrated customer calls with a complex issue, Sarah patiently listens, provides clear explanations, and goes the extra mile to find a solution. The customer, initially agitated, ends the call feeling heard and valued. This positive experience translates into continued loyalty and positive word-of-mouth referrals, directly impacting the company's bottom line.

This story highlights the core principle: engaged employees enhance customer experience. However, some organizations still operate under the misconception that employee experience (EX) and customer experience (CX) are separate entities. They fail to recognize that CX improvements are intrinsically linked to employee engagement.

Understanding the Link Between Employee Engagement and Customer Experience

To have a fair understanding of the connection, we must have a clear idea of the key terms:

• Employee Experience (EX): It is the holistic experience of employees within an organization. It includes their interactions with colleagues, managers, and the overall company culture.

• Customer Experience (CX): This pertains to the way a customer views their experiences with a business, including every interaction across their entire journey.

Engaged employees are better positioned to deliver exceptional CX because they are more likely to:

• Be passionate about their work and the company's mission.

• Go above and beyond to meet customer needs.

• Build strong relationships with customers.

• Contribute to a positive and supportive work environment.

Research by PwC has found that when clients sense that they are valued, businesses reap significant advantages—including the opportunity to capture a larger share of their customers' expenditures. The rewards for providing exceptional, appreciated experiences are concrete: up to a 16% increase in pricing on goods and services and enhanced loyalty.

The Business Impact of Aligning Employee and Customer Experiences

The impact of aligning EX and CX extends beyond anecdotal evidence. Here's a deeper dive into the tangible benefits:

Emotional Connection:

The emotions of employees have a direct influence on customer perceptions. Neuroscience research highlights the role of neurochemicals like dopamine, serotonin, and oxytocin in shaping social behavior and emotional responses. When employees feel valued and appreciated, these neurochemicals contribute to a positive emotional state. In return, this enhances the interactions with customers and plays a critical role in customer satisfaction.

Productivity and Performance:

Engaged employees bring a higher rate of productivity to the work culture. This is what Gallup research found. A staggering 21% of employees are productive when actively engaged in the workplace. This increase in productivity makes them committed to their work and their willingness to go the extra mile.

Actionable Insights:

To foster emotional connections and boost productivity, organizations can:

• Implement robust recognition programs that enable both manager appreciation and peer-to-peer recognition. Such programs should have the capability of instant acknowledgement and recognition for employee contributions.

• Giving employees a sense of purpose is crucial to increase their engagement. To do that, you need to connect individual roles to the company’s mission and values.

• Creating a culture of transparent feedback and open communication is crucial. This makes the employees feel valued and heard, enabling them to put forward their queries without any roadblocks.

Real-World Examples:

One of the world’s leading audio streaming platforms, Spotify, collaborated with a marketing firm to create a customer journey. The aim was to enhance the overall music-sharing experience. The map tracked the user experience from the moment they opened the app on a mobile device to the point where they engaged with a song shared by a friend. At each stage and touchpoint, the journey map captured what the customer was doing, thinking, feeling, and engaging with, using data research and customer surveys to provide insights into the user experience.

This mapping exercise allowed Spotify to pinpoint specific pain points in the music-sharing process. By addressing these issues, the company streamlined the experience, making it smoother and more enjoyable for users. The improved music-sharing feature encouraged more users to share music frequently, thereby enhancing engagement and interaction within the platform.

(Study taken from Woopra)

This example gives us an insight on how organizations think forward. However, at the same time it is not possible without the support of the workforce. This made the employees work towards something greater which enabled them to perform at their peak and come up with the best product they could.

Create a Unified Employee and Customer Experience Strategy

When you are aligning EX and CX, be mindful that it requires a strategic approach. Here's a mini framework to guide your efforts:

Identify Gaps:

Closing the gap between both employee and customer journeys is crucial. You need to pinpoint the areas where misalignment exists. To do that, you can conduct surveys and analyze the data to understand the pain points. This will allow you to improve communication between the customers and employees while minimizing any sort of roadblocks.

Encourage Collaboration:

Without collaboration, it is difficult to achieve the targets because every team is reliant on the other. When you foster a culture of collaboration you emphasize more on cross-departmental projects. The aim is to bridge the gap between EX and CX through knowledge sharing. As employees become more informed about issues, they provide better solutions to customers, enhancing their satisfaction levels in the long run.

Measure and Adapt:

It is essential to measure what works and what does not to optimize the CX and EX levels. Track progress using key metrics like NPS, CSAT (Customer Satisfaction Score), and eNPS (Employees Net Promoter Score). Journal everything that shows up in the data and review them regularly. This will enable you to adapt your strategy based on insights and feedback from employees and customers.

The Financial and Operational Benefits of Aligning Employee and Customer Experience

The business value of aligning EX and CX is undeniable. Here are some compelling statistics:

• Companies that prioritize both EX and CX see double the revenue growth compared to those that don't.

• Organizations with a strong EX see 25% higher profits than those that don't.

• Companies with engaged employees have 10% higher customer loyalty ratings.

• Aligned EX and CX strategies lead to a 60% reduction in customer complaints.

Measuring ROI:

It is important that you measure the return on investment (ROI) of EX and CX alignments. This will help to improve the gaps and invest in enhancing both EX and CX. You can track metrics like:

• Revenue growth.

• Customer retention rates.

• Employee turnover rates.

• Customer acquisition costs.

• Employee productivity.

When presenting ROI to stakeholders, emphasize the long-term benefits, such as increased customer loyalty, brand advocacy, and a stronger company culture.

Creating a Customer-Centric Culture Through Employee Engagement

One thing that plays a pivotal role in shaping a customer-centric culture is the leadership. Without good leadership skills, it is impossible to attain the goals and generate higher revenues. What must a leader do then to create such a culture? Well, the leaders must:

• Clearly communicate the organization's commitment to customers.

• Empower employees to make decisions that prioritize customer satisfaction.

• Lead by example, demonstrating customer-centric values in their own actions.

Companies like Zappos and Ritz-Carlton are renowned for their customer-centric cultures, where employees are empowered to go above and beyond to meet customer needs.

Practical Tips for Fostering Alignment:

• Foster open communication and feedback loops between employees and customers.

• Empower frontline employees to make real-time decisions that benefit customers.

• Provide employees with the training and resources they need to deliver exceptional service.

Conclusion

Investing in employee engagement constitutes a strategic investment in customer experience and, consequently, the overall success of the business. By fostering a work environment in which employees feel valued, supported, and empowered, organizations can develop a customer-centric culture that enhances customer satisfaction, loyalty, and revenue growth.

FAQs

Q. What is the relationship between employee engagement and customer experience?

Employee engagement and customer experience are intrinsically linked. Engaged employees are more likely to provide excellent customer service, leading to increased customer satisfaction and query resolution.

What comes first, customer experience or employee experience?

While both are important, prioritizing employee experience often leads to improved customer experience. When employees feel valued and supported, they are more likely to deliver exceptional service.

What is the difference between customer engagement and employee engagement?

Customer engagement refers to the level of interaction and connection customers have with a brand. Employee engagement refers to the level of commitment and enthusiasm employees have for their work and the organization.

Mrinmoy Rabha is a content writer and digital marketer at Vantage Circle. He has worked in the human resources environment and has elevated recognition and rewards through his insightful and detailed writing. He aims to enhance the practice of Recognition in the workplace with new ideas and innovation that will help shape the work culture. For any related queries, contact editor@vantagecircle.com