Engaged Employees Create Satisfied Customers

Dec 13, 12 | 12:06 am

By Todor Tzolov and Jon H. Black

Scrooge might not like this finding, but happy employees create satisfied customers. After looking at results from more than 300 customer satisfaction and employee feedback programs, the results are clear.

It makes logical sense: contented employees create better customer experiences which create more satisfied customers. But without proof that it pays off, investments in employee satisfaction can be a tough sell. Especially when budgets are tight. So we wanted to know the answer.

We turned to 16 years of data from over 300 hospitality companies. It convincingly demonstrated that employee feedback programs consistently help to improve customer satisfaction.

More specifically, we saw that when companies monitor employee feedback, 86% experience an increase in customer satisfaction during the first two years.

But ongoing measurement is important. The biggest increases in customer satisfaction actually come between years one and two. This makes sense if you think about it. It typically takes a year for the learning from an employee feedback program to be turned into action plans which improve employee engagement.

Any way you look at it, investing in contented employees is one of the best ways to boost customer satisfaction, and the bottom line. Look for a follow up soon on just how much employee engagement can be worth.

Source: Market Metrix