Happy Employees, Loyal Customers - Why the business case for employee experience is stronger than ever
Glyn Luckett CMRS
Insight 250 Award winning MRS Certified Insights Professional | 25+ Ys Exp in Design + Delivery of Customer/Employee (Exp, Sat, CES, Gap Analysis) + Stakeholder Research | Exp Research Bus Growth | More in About section
Introduction
The relationship between employee experience (EX) and customer experience (CX) is well established: engaged, motivated employees create better customer interactions, drive loyalty, and ultimately improve business performance. Research consistently shows that companies investing in employee experience see a direct impact on customer satisfaction and financial success.
A study by McKinsey found that organisations with highly engaged employees outperform competitors by 147% in earnings per share. Similarly, research from Gallup highlights that businesses in the top quartile of employee engagement achieve 10% higher customer ratings and 23% higher profitability.
This connection is not incidental, but a result of well-designed employee and customer experience strategies driven by insight-led decision-making.
This article explores how employee and customer research can shape process improvement, foster alignment between EX and CX, and create sustainable business growth.
The Employee Experience-Customer Satisfaction Connection
1. Employee Engagement Drives Customer Loyalty
Highly engaged employees go beyond simply meeting customer expectations they create memorable experiences that foster brand loyalty. According to a Harvard Business Review study, 70% of customers perception of a brand is determined by their interactions with employees. This means that frontline employees who are empowered, well-trained, and satisfied with their jobs are far more likely to deliver superior service.
For example, in the hospitality sector, Marriott International, Take Care employee engagement program has led to consistently high customer satisfaction ratings. By prioritising employee well-being and professional development, the company ensures that employees are motivated to deliver exceptional guest experiences, translating into higher Net Promoter Scores (NPS) and repeat guest bookings.
2. The Cost of Disengagement
Conversely, disengaged employees create friction in customer interactions. Research from the Temkin Group found that companies with low employee engagement scores see a 33% drop in customer satisfaction ratings. This is because disengaged employees are less likely to be proactive, empathetic, or solution-oriented essential qualities in customer service.
A well-documented example is the airline industry. Airlines like Southwest Airlines, known for their strong EX culture, consistently outperform competitors in customer service rankings (ranked No. 1 on Newsweek’s America’s Best Customer Service 2024 list in the Airlines and Low-Cost Airlines subcategories). In contrast, airlines that struggle with employee morale whether due to pay disputes, understaffing, or lack of development opportunities often see lower customer satisfaction and increased complaints.
Using Research to Design and Improve Processes
The key to aligning EX with CX is research driven. Businesses must continuously measure both employee and customer sentiment to identify pain points, design solutions, and implement continuous improvement initiatives.
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1. Employee Experience Research
Understanding employee sentiment requires robust research methodologies, such as:
For example, by measuring employee engagement through surveys and other research initiatives. The insights help refine training programs, workplace policies, and leadership development ultimately improving customer service quality.
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2. Customer Experience Research
Similarly, organisations must track customer experience through:
Amazon is a prime example of using CX research effectively. By closely monitoring customer sentiment and service pain points, Amazon continuously optimizes employee training, logistics, and customer service interactions leading to high customer satisfaction and retention.
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Aligning EX and CSAT for Continuous Improvement
To bridge the gap between employee and customer experience, organisations need to blend their activities and understand their relative success, here are 4 strategies for success:
1. Establish Cross-Functional Insights Programs
Integrating EX and CX research within a single framework enables businesses to identify correlations and root causes. For example, if customer complaints about slow service align with employee feedback about understaffing, this insight informs workforce planning.
2. Develop Employee-Centric Training Programs
Research-backed training initiatives improve frontline interactions. Ritz-Carlton, for instance, empowers employees with discretionary spending to resolve guest issues on the spot, reducing complaints and enhancing satisfaction.
3. Implement Real-Time Feedback Loops
Digital platforms like Maru/HUB allow organisations to collect and analyse employee and customer feedback in real time, leading to faster response times and proactive issue resolution.
4. Create a Culture of Recognition
Studies show (PlosOne - journals.plos.org) that recognised employees are 63% more likely to be engaged. Companies like Zappos emphasise recognition and empowerment, ensuring employees are motivated to provide exceptional customer service.
Conclusion
The connection between employee experience and customer satisfaction is undeniable. Companies that invest in employee well-being, engagement, and training see tangible improvements in customer interactions, satisfaction, and financial performance.
By leveraging research methodologies to monitor both EX and CX, organisations can continuously refine processes, improve service quality, and drive sustainable growth.
The challenge for businesses today is not just to measure EX and CX separately but to integrate insights, create data-driven strategies, and foster a culture where employee and customer satisfaction work in unison.
Those that do will not only enhance customer loyalty but also future proof their business against competition.
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Facilitator ?? Experience Designer // Employee Experience Enthusiast // Footballer approaching retirement
12 小时前When I came to Hyper Island., I embraced Feedback Loops as a powerful tool for growth. With help Leadership must foster a culture where feedback is valued and acted upon. I love team development sessions, they help break barriers, meet teams where they are, and provide clear insights into their needs—enabling leaders to drive actionable change.