The Relationship Between Employee Engagement and Satisfied Customers

a woman on the phone with a smile and thumbs up

Those of us who have spent decades in the field of customer service look at the picture above and see two things:

1. An engaged employee who loves their job, their company and gives it their all.
2. The likelihood of a happy and loyal customer on the other end of the phone.

And that’s what so many miss…the link between engaged employees and customer loyalty. Some people call it the service-profit chain. Whatever you call it, the concept is that there is a direct relationship between [internal service quality, employee engagement, employee retention, employee productivity, customer satisfaction and customer loyalty] and [revenue growth and profitability.]

Just think about your own customer experience at the store, on the phone or in business. If you encounter an employee who has high conviction about what they do and how they did it that provides excellent service and value, what is your reaction as a customer? You most likely leave with positive feelings about the interaction and the organization.

For example, I am a volunteer ski patrol in the winter. My Patagonia ski pants of 15 years started to lose their water protective qualities. I called Patagonia and they sent me a new pair of pants for free with little fuss because their products are guaranteed for life. I am now a Patagonia advocate for life – and so are my friends and the people that see me patrolling on the mountain.

Of course, the opposite is true too. A disengaged, sour-faced employee will leave you with doubts about the organization they work for. For example, my son recently was involved in a minor traffic collision. Our insurance agent of 30 years was useless in helping us understand our options and making a wise decision about how to proceed. Our satisfaction with the process was low, and we would gladly entertain switching providers based upon that one negative experience.

The point is that the attitude and behavior of your employees (especially your customer-facing employees) have a profound effect on the attitude, behavior and profitability of your customers. The more engaged your employees, the more likely your customers will reflect their positive attitudes. When you analyze the numbers, this connection can make a huge difference to your bottom line.

Studies show that a whopping 70% of the workforce is at best complacent and at worst actively disengaged. Imagine what these employees are doing to your customer base. If customers are tuned in to their experiences with your employees, you risk having the same negative impressions that I had of our insurance agent and her company.

Well satisfied customers are loyal and profitable. They talk to friends and associates about their experience. Go Patagonia! They add ratings and reviews that are readily available as testimonials on your web site and through social media. Indifferent customers, by the same token, can cause a lot of damage. They are easily tipped toward negative impressions. Actively disengaged employees can result in actively disengaged customers…the customers who can bad-mouth your organization and go elsewhere.

If you are looking to improve customer reactions and word-of-mouth marketing, begin with your workforce. Improve employee engagement and you will improve the experience of your customers. It’s all about relationships. Strengthen the one between your employees and the organization and you will, at the same time, strengthen the relationship between your customers and the company. All this hard work will end up in your favor… improved business results.

Benchmark your employee engagement practices to see where you stand.

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LSA custom designed a Management Development program that is absolutely “on target” for our technical managers. Their facilitator has done a superb job delivering the material in a way that is fast paced, highly interactive, and fun. She presents practical solutions to the people situations that our managers face every day. I regard LSA as an excellent partner that understands our business needs and a virtual member of our HR department.

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LSA helped to meet the needs of my teams within a very narrow timeframe. My team walked away with highly useful management tools and practices. LSA saved us time in delivering the right solution for our specific needs.

Sandeep Kumar
Director, Software Engineering, EPG

I’ve been associated with LSA for the last 8 years and have found them to be an extremely professional, well managed full service training organization. Since working with LSA, I’ve participated in a number of solutions ranging from Performance Management to Assertiveness Training – I’ve found that the quality of the resources is superior. They are well prepared and have definitely done a considerable amount of pre-work in order to customize our culture and business into the total learning experience – making it most beneficial for our employees.

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Susan Anderson
Workforce Planning Bureau

We recently partnered with LSA Global to offer our Supervisors and Managers a customized two-day management training program. Everyone who attended said it was by far the best management training program they had ever attended. The content was rich and highly interactive. The case studies were relevant. Each participant walked away from the training much better equipped to lead their teams.

Jeff Coon
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LSA’s approach and ability to bring the best resources to eBay has been a great asset. They really focus on helping us succeed in any way they can and are very flexible in meeting our management and talent needs.

Mike Normant
Learning & Development

ebay

Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

What a refreshing change from the half-baked psycho-babble you normally get from “training” organizations. LSA gives you the assistance you need to define and reach your goal, and then they give you a results driven plan – not just a temporary fix. They are great to work with, and even more importantly, they “get it!”

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The Next Generation Management Development courses have helped me communicate more effectively with my peers and teammates. By utilizing effective communication techniques such as clarifying and confirming, and asking open ended questions, I have been able to clarify and understand information in situations where I would have otherwise asked limited questions and made false assumptions.

Robert Breckner
Firmware Engineering Manager

On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

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Roche

LSA provided top notch solutions right when and how we needed them. They exceeded my expectations from a speed, quality, and cost standpoint. I recommend them to anyone looking for a true business partner in the Learning and Development arena. The breadth and depth of their expertise has helped us hit tight deadlines across multiple projects.

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LSA exceeded all my expectations. We interviewed 7 potential training and consulting partners and selected LSA due to their expertise, flexibility, and breadth and depth of solutions. We were able to construct a management training course from the modules most appropriate to our needs, and are able to provide additional training from their well developed portfolio of experts. Our managers galvanized as a team throughout the session and are better prepared for the rigors of a competitive market.

Mitch Mandich
CEO

Edify

We contacted LSA to help us with customized management development. LSA worked with me to identify a solution that would meet our exact needs. We decided to start at the top and ran the program for our executive team. It was such a great success that we hope to roll it out companywide. We look forward to a long-term partnership with LSA Global and their team of experts.

Barry L. Byrd, SPHR
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VNUS Medical has been very pleased with the effective management development programs that LSA Global has delivered for us over the last four years. The programs have been universally facilitated by experienced and best in class instructors. The knowledge gained by our management team has been put into practice very quickly. VNUS is very happy to be working in partnership with LSA because they consistently deliver excellent programs that receive exceptional feedback from our management team.

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