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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Michelle A. Mitchell
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LSA has been a tremendous asset to my portfolio, both at my current company and my past company. As an HR leader, I am always looking for ways to find external resources that can provide a solution to our management training needs. LSA does that for me. Their solutions are presented in a much more leadership-oriented manner so as to be crisp, business relevant, and easy to apply right back on the job. I will continue to augment our programs using LSA solutions.

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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.

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I have worked with LSA Global at previous companies and welcomed the opportunity to bring them in to support my new organization. We worked closely with LSA to design a solution for our Client Partner Teams and Management Training on both coasts. LSA designed a customized solution for our business and organizational culture. LSA is a quality organization, one that I’d recommend to any company looking for a first class training and consulting partner that makes an impact.

Laurie Torres
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LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

Understanding and conforming to legal compliance was very important to our company. We turned to LSA Global to provide a quality and cost effective way to ensure that we were AB 1825 compliant. Their interactive eLearning program was top-notch. It allowed our managers to learn at their own pace, and on their own time. The program was tailored to include our logo and our internal harassment policies. It was interactive and met all federal and state legal requirements. I would highly recommend LSA Global to any company looking for an efficient and effective and top quality way to train their managers to be in compliance.

Kelly Warren, SPHR
Director, HR & Compliance

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

Bob Ward
Director of HR

What a personal and professional pleasure it has been to Partner with LSA. They are truly a strategic partner with Wyse. For more than 5 years, LSA has been engaged in delivering various training and development solutions for Wyse, from custom on-site programs targeting specific core competencies, to working individually with clients to build job skills, and offering invaluable services to me and my team as we continue to build our learning programs. LSA’s representatives do more than sell a product, they offer a full service solution: they understand our business, our strategic initiatives, and the needs of our customers.

Jeff Rangel
Director of HR

We engaged LSA to design and deliver a 6-month custom executive coaching program for a group of our key leaders. The focus of the program was to help a core group of senior leaders to leverage previous investments in management training, to ensure the engagement and retention of key employees, and to push critical strategic initiatives forward. Even with the high expectations of our senior people, LSA has completely exceeded our expectations. I would recommend them to anyone looking to create and implement a custom coaching methodology using proven tools to drive true change.

Ivan Fukumoto
Senior HR Manager - Staffing, Training, & Development

Each program is preceded by an assessment of the participants. The course is then designed to fit the specific parameters and needs of the group. The highly interactive delivery is provided by recognized experts in their fields. On the spot coaching is provided during the program and each participant receives individual follow-up after the course. Courses can be delivered in-person or virtually. Given the nature of Cisco’s business and the way we operate, these remote workshops are a must for anyone who joins our company. Their work is eye opening. Great content and fantastic delivery.

Frank J. Kuypers
Business Development Manager

Here’s a token of my appreciation for ALL your efforts. I’m offering my most sincere appreciation, and it extends to all the folks who made our customized management development programs possible.

Susan Anderson
Workforce Planning Bureau

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 turned to LSA to help us custom design and deliver a leadership and management development curriculum to help drive performance. They have done an excellent job diagnosing the business situation, designing an approach that fits our culture, and delivering a first class solution.”

Sally Buchannan
VP Human Resources

I am very impressed with the quality of work and talent. LSA did a great job of listening to my needs and providing the exact management training program expertise I needed to get the job done.

Don Pryor
Director, Business Planning & Analysis

Avon’s success is dependent on strong relationships among our Customers, Representatives, Associates, and outside resources we hire to help us meet our business objectives. We were very pleased with the results from working with LSA Global to design and facilitate a custom program for our events management team. LSA demonstrated responsiveness, flexibility, and an innovative approach to working with us.

Deanna Rudnitsky
Senior Manager, HR Destiny Sales Region

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