The Lucrative Link Between Employee and Customer Loyalty

 In Business Success, Customer Engagement, Customer Loyalty & Retention, Customer Service & Satisfaction, Employee engagement, Rick Conlow

There has been an overwhelming amount of research on the connection between employee engagement and the customer experience. Each undoubtedly linked in positively influencing a company’s financial performance. Yet, it’s important to clarify that this connection isn’t always linear. In other words, companies can inaccurately assume that by improving one, they’ll automatically improve both. So, they start with the easier option and wait for both situations to get better. Most often they just work on the customer experience. This is the wrong way to go about it… let me explain.

It isn’t that easy…

For example, just as exercising and eating healthy are two factors to losing weight, treating employees well and satisfying customers are two factors to driving business success. That being said, if you just do one, the other won’t automatically change for the better. If you just eat well but never move your body, you won’t necessarily lose weight or be healthy. And similarly so, if you just strive to satisfy your customers, your employees might not feel any different. Doing both well substantially increases your likelihood of achieving financial success.

The Human Sigma

If you’re wondering why the linkage matters, considering you still need to work at both efforts – well, I’ll tell you why. John H. Fleming and Jim Asplund published Human Sigma: Managing the Employee-Customer Encounter and through their research, they discovered that “Business units that performed well in employee and customer engagement – even though they may not have had the highest scores on either metric – tended to deliver considerably better financial results (3.4 times better than others) than those that scored poorly on the two measures.” In other words, you don’t need to be the best in one or both; you just need to be making good strides in each areas of the human sigma to achieve better results overall.

This is great news for 3 main reasons:

  1. It provides a focus. Companies can spin their wheels when deciding where to begin when they know they need to change. This evidence provides companies the direction they might be lacking.
  2. It produces a realistic approach to reaching results. If companies think that only one thing is standing between them and their success, they can put an unhelpful amount of pressure on the one department or one manager that they believe is responsible for making it happen. Knowing how these two things work in tandem can spread the responsibilities around.
  3. It proves that everyone matters. If just employees mattered – your customers wouldn’t want to return for more. And if just your customers mattered – your employees might feel severely shunned. But with this news, both factors matter, which ultimately means more people will be pleased with your company.

Finally, this lucrative link simply makes common sense. How can you have exceptional customer service if employees don’t like their boss or the company? Or, how can you deliver subpar service with employees that love their boss and the company?  In either case it is a leadership challenge. Steve Jobs said it well, “That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” 



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  • […] perception. While on on hand this is bad news. On the other hand, for companies that know the lucrative link between employee engagement and customer engagement, it is superb news! It means more market gains for […]

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