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Employee engagement can make or break your business.

Leaders make engagement happen.

How Employee Engagement can improve your Customer Experience (CX)
Author: Medha N.
Jan 2021 | 6 min read
Is your customer-facing team engaged at work?
Our research found that the best way to improve customer experience and service is to focus on employee engagement at your company. There is a direct correlation between engaged employees and the satisfaction of your customer and ultimately achieving your business outcomes.
In other words, employee engagement drives customer satisfaction. Richard Branson says, “Take care of your employees and they will take care of your customers”.
A recent employee engagement survey concluded that organizations that have more than 50% employee engagement retain more than 80% of their customers. These employees will go the extra mile to resolve the client’s problems or work late to close a sale. They contribute to a culture that consistently delivers great service.  They take ownership, deliver on their commitments, in and outside the organization, and are passionate about satisfying the customer because they own the results of their work.
In short, engaged employees are a prerequisite for building a high-performance team within an organization.
Customer experiences don’t happen in a vacuum. They are the result of employee activities. Businesses that understand the importance of employee engagement and manage it through a formal program to align to their customer experience goals, achieve far superior results. Companies with a formal employee engagement program achieve 39% greater annual growth in revenue from new customers.
Benefits of Employee Engagement for a Better Customer Experience
1. When you offer a great employee experience, your customers are far more likely to stick around.
Customers pay careful attention to how a company treats its employees. When you offer a great employee experience, your customers are far more likely to stick around and use your business, because they remember how great the people are who work there. Treat your employees poorly, however, and you can be almost certain that you’ll run into problems with your customers.
2. A Great Employee Experience Creates Great Business Partnerships.
Treating your employees well, and people will notice. It opens the doors for new partnerships, especially when other businesses see how well you take care of your people. When employees support and love the brand they work for, they create amazing experiences. Who wouldn’t want to work with a brand that provides an amazing employee experience?
3. Problem-Solving Happens Faster, and Customers’ Issues are Reduced.
When your employees feel like they and their co-workers are treated with respect and are valued, they feel a sense of empowerment. They are proud to be part of the team and are more creative and innovative. When they know an employer respects them, they feel comfortable making decisions and solve problems.
On the other hand, employees who are ignored and discounted and who have to ask for permission to think will not make any extra effort to help the customer. Why should they care about customers, when the company doesn’t care about them?
4. It is Easier to Upsell When You Love Your Job and Your Company.
Customer retention is far less expensive than customer acquisition (much like employee retention). Employees who are treated well and feel valued are not afraid to offer more to their customers. That logic on its own should highlight the importance of employee engagement.
5. Stronger Corporate Alignment
When employees are more engaged with your business, they're more likely to contribute to its success. They're five times more likely to pitch an idea that will improve the company. Even if they're not contributing new ideas, engaged employees are still three times more likely to work later if something needs to be done. That type of dedication to a goal will help your team meet deadlines and achieve long-term success.
6. Delightful Customer Experiences
Employee engagement can lead to an increase in customer satisfaction. That's because engaged employees create more delightful experiences for customers since they're more invested in the product and business. 79% of companies with engaged employees had a significantly better customer experience than companies who didn't. These companies have happier employees who are more willing to provide above-and-beyond customer service.
7. Improved Customer Relations
Over time, a consistently delightful customer experience builds rapport with your customer base. Customers learn to trust that your business and its employees are devoted to their short- and long-term success. This leads to customer advocacy as people will start to share their positive experiences with potential leads.