Many companies make the mistake of measuring customer satisfaction in isolation. However, new research from Washington State University suggests that that employee engagement is directly linked to customer satisfaction, Because financial success is directly linked to customer satisfaction, employee engagement is indirectly, yet importantly, linked to financial performance.
If you are only measuring satisfaction and loyalty among customers, you’re only seeing half the picture.
Infosurv Research has published a case study that illustrates the positive relationship between employee engagement and customer satisfaction. We conducted both Employee Engagement and Customer Satisfaction surveys for one of our clients, and we found the key: an increase in employee engagement is correlated with an increase in customer satisfaction.
And not a small increase, either. For our client, where customer recommendations are its main source of new business, we uncovered the critical relationship between engaged employees and customer recommendations: a 2% increase in employee engagement leads to a 1% increase in customer recommendations. The opposite is even more dramatically true: as employee engagement decreased, customers’ willingness to recommend the company decreased by 56%. Using their sales data, our client can easily take these results straight to the bottom line.
What does this mean for you?
- First, employee engagement and customer satisfaction are both important strategic issues for your business. In order to maximize profitability, you need to examine and monitor both employee engagement and customer loyalty.
- Understanding how much impact Employee Engagement has on Customer Satisfaction can help you evaluate your return on any investment in improving employee engagement.
- If your Employee Engagement and Customer Satisfaction Measurement Programs are managed separately, you could be missing important opportunities for improving
- Employee Engagement cannot be the sole domain of Human Resources. Customer satisfaction cannot be the sole domain of Customer Service. These must be at the heart of your business.
Creating a mindset that considers both the Employee and the Customer in business decisions is the key to maximizing profitability. Don’t run your business with half the picture!
To tell the story of the relationship between employee engagement and customer satisfaction download our infographic.
Read our blog post on all the details of the case study illustrating the positive relationship between employee engagement and customer satisfaction.