Why Happy Employees Are The Secret to Customer Loyalty

Feeling swamped by the challenge of improving both Employee Experience (EX) and Customer Experience (CX)? You’re not alone. Many believe that these require separate strategies, but here’s the real deal: a happy, engaged workforce is the secret sauce to delivering outstanding customer experiences.

Let’s unpack this idea using insights from the Qualtrics XM Institute Global Study 2024.

A bit about the Qualtrics XM Institute Global Study 2024

• Qualtrics is an American experience management company
• 28,400 consumers surveyed for this study
• 20 different industries - from retail to hospitality and fast food?
• Across 26 countries were surveyed

The Myth of separate strategies for EX and CX

Let’s be real for a second. We’ve all been there—thinking if we just throw enough tools and strategies at both EX and CX, everything will magically fall into place.

But spoiler alert: that’s the #1 myth keeping you stuck in the mud.?

The truth is, EX and CX are BFFs, especially when your frontline employees are involved. When your team is happy, guess what? They make your customers happy too. The 2024 Qualtrics Global Study: ROI of Customer Experience is practically waving a neon sign saying, “Hey, pay attention to this connection!”. So let’s break it down.

Trust: Customers are 2.9x more likely to trust you after a 5-star experience

And guess what? That 5-star experience isn’t just about your product or service. It's about how your team interacts with customers. If your employees are dragging their feet, looking like they’d rather be anywhere else, that trust??

Yeah, it goes out the window.

Takeaway: Want more trust? Start with happier employees. When they’re on the top of their game, customers feel it, and trust follows.

Advocacy: Turning customers into fans

Who doesn’t love a good recommendation, right? But here’s the deal - customers are only going to rave about you if your team makes it worth their while. The study shows that positive experiences can boost advocacy by up to 91%.?

But there’s a catch: your employees need to be engaged. If they’re not feeling it, your customers won’t either. And those glowing recommendations??

Poof. Gone.

Takeaway: Engaged employees make magic happen. Keep them in the loop, recognize their efforts, and watch your customer referrals skyrocket.

Loyalty: Customers 3.1x more likely to rebuy when they’re happy

Here’s the golden nugget: happy customers come back for more.?

But they won’t if their interactions with your employees feel like they’re dealing with DMV-level enthusiasm.?

The study found that satisfied customers are 3.1x more likely to return.?

Takeaway: Want customers to stick around? Make sure your employees aren’t just delivering a good experience, but a great one. And yes, that starts with investing in their experience.

So, why should you care?

Good question!

Here’s the answer: EX drives CX.

Period.?

If your employees feel like they matter, they’re going to deliver service that matters to your customers.?

And here’s where Internal Comms becomes the key player.

The role of internal comms? AN IMPORTANT ONE.

Your team needs to know they’re not just cogs in a machine. They need to feel connected, involved, and - dare we say it - valued. That’s where internal communications comes in:

• Clarity is key: Keep everyone on the same page. When employees understand the game plan, they can play to win.
• Good vibes only: Regular, transparent communication boosts morale, which leads to better customer interactions. Simple, right?
• Give them a voice: Employees who feel heard are more engaged. Listen to them, act on their feedback, and you’ll see the benefits on both EX and CX.
• Celebrate wins: Shout out employee successes through your internal comms channels. Recognition = engagement = better customer service. It’s science (probably).

If you take nothing else from this, remember: EX and CX are inseparable. The companies winning the CX game are the ones investing in their employees.

Want to dive deeper? Check out how Speakap can help you bridge the gap between EX and CX with real, practical solutions that keep both your frontline employees and customers happy.

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