When companies look for ways to improve customer service, they generally start by considering more things they can do for their customers. If they were smart, they would first look at how they treat their own employees.
Over the years it's been proven that satisfied employees produce satisfied customers. Studies have documented that contented employees have a greater sense of commitment to both the company and its customers. Employees who are satisfied with their jobs are more likely to want their employer to succeed. As a result, they work harder to ensure success and provide superior levels of customer service.
During the 14 years I worked for IBM Canada, the company conducted annual customer satisfaction and employee satisfaction surveys. The results from both surveys were closely monitored since IBM recognized a direct correlation between them.
If employee satisfaction fell, within six months so did customer satisfaction. Action was always taken very quickly to improve employee satisfaction since a decrease in customer satisfaction inevitably would be reflected by a decrease in bottom-line results.
Coopers and Lybrand, now PricewaterhouseCoopers, examined many large companies in 1996 and 1997 and proved that customer satisfaction is directly proportional to employee satisfaction.
Soctiabank, too, analysed data from employee and customer surveys and found that employees feel positive about the quality of service they deliver, they will be more confident in their ability to meet customer needs. And that, in turn, increases customer satisfaction.
In a study of seven telephone customer service centres, MCI Worldcom found clear relationships between employees' perceptions of the quality of MCI service and their own satisfaction. The study also linked employee satisfaction directly to the number of customers stating an intention to continue using MCI's services.
Sears analysed 20 years of data from 800 stores. It found that a 5 per cent increase in employee satisfaction resulted in a 1.4 per cent increase in customer satisfaction, which yielded a 1 per cent increase in profitability.
Frederick Reichheld, a director at Bain and Company who studies customer loyalty and satisfaction, found that U.S. companies lose half their customers every five years. By decreasing this by only five percentage points, they could double their profits!
Even more interesting, Reichheld found that on average U.S. firms lose half of their employees every four years. This makes employee retention just as important, if not more so, than customer retention.
Let’s face it, employees who are happy stay longer, which in itself can produce higher customer satisfaction. But dissatisfied customers fuel decreases in employee satisfaction, thus encouraging turnover. And high turnover further deteriorates service, particularly where the continuity of the customer-servicer relationship is important.
Not too surprisingly, employees who believe in the product or service they are offering are happier performing their jobs. The key is to hire the right staff, properly train them, and then continually ensure they are motivated.
Through some of the customer service training I've done over the years, I've discovered that front-line employees often know what should be done to keep customers satisfied. Unfortunately their hands are often tied by company policies which prevent them from acting in the best interests of customers.
Empowering employees to take whatever action is necessary in the best interests of customers may be scary, but it's not nearly as threatening as the prospect of customer or employee churn. Good training programs can help to ensure employees know the guidelines and act appropriately.
What else can companies do to ensure their employees are satisfied? Best practices studies asking which actions increase employee satisfaction noted the following findings.
Communication
Strong companies communicate their values. Values affect behaviour and create a strong culture, so need to be communicated consistently and often.
Leadership
Leadership is a significant factor affecting employee satisfaction and customer satisfaction. Employees look for clarity of direction, simple messages and consistent behaviour.
Employee Involvement
Best in class companies promote and encourage employee engagement in solving company problems. They also solicit and use employee ideas for continuous improvement. If employees are allowed input about how to do their jobs, they are happier and will do a better job.
Feedback
Employees who receive continuous, constructive feedback on their performance are more likely to meet their customers' needs.
Treat them Right
Employees treat their peers and customers the same way they are treated by management. Just as children learn what they live, so do employees. Excellent customer service must be modelled throughout the company.
Over the years it's been proven that satisfied employees produce satisfied customers. Studies have documented that contented employees have a greater sense of commitment to both the company and its customers. Employees who are satisfied with their jobs are more likely to want their employer to succeed. As a result, they work harder to ensure success and provide superior levels of customer service.
During the 14 years I worked for IBM Canada, the company conducted annual customer satisfaction and employee satisfaction surveys. The results from both surveys were closely monitored since IBM recognized a direct correlation between them.
If employee satisfaction fell, within six months so did customer satisfaction. Action was always taken very quickly to improve employee satisfaction since a decrease in customer satisfaction inevitably would be reflected by a decrease in bottom-line results.
Coopers and Lybrand, now PricewaterhouseCoopers, examined many large companies in 1996 and 1997 and proved that customer satisfaction is directly proportional to employee satisfaction.
Soctiabank, too, analysed data from employee and customer surveys and found that employees feel positive about the quality of service they deliver, they will be more confident in their ability to meet customer needs. And that, in turn, increases customer satisfaction.
In a study of seven telephone customer service centres, MCI Worldcom found clear relationships between employees' perceptions of the quality of MCI service and their own satisfaction. The study also linked employee satisfaction directly to the number of customers stating an intention to continue using MCI's services.
Sears analysed 20 years of data from 800 stores. It found that a 5 per cent increase in employee satisfaction resulted in a 1.4 per cent increase in customer satisfaction, which yielded a 1 per cent increase in profitability.
Frederick Reichheld, a director at Bain and Company who studies customer loyalty and satisfaction, found that U.S. companies lose half their customers every five years. By decreasing this by only five percentage points, they could double their profits!
Even more interesting, Reichheld found that on average U.S. firms lose half of their employees every four years. This makes employee retention just as important, if not more so, than customer retention.
Let’s face it, employees who are happy stay longer, which in itself can produce higher customer satisfaction. But dissatisfied customers fuel decreases in employee satisfaction, thus encouraging turnover. And high turnover further deteriorates service, particularly where the continuity of the customer-servicer relationship is important.
Not too surprisingly, employees who believe in the product or service they are offering are happier performing their jobs. The key is to hire the right staff, properly train them, and then continually ensure they are motivated.
Through some of the customer service training I've done over the years, I've discovered that front-line employees often know what should be done to keep customers satisfied. Unfortunately their hands are often tied by company policies which prevent them from acting in the best interests of customers.
Empowering employees to take whatever action is necessary in the best interests of customers may be scary, but it's not nearly as threatening as the prospect of customer or employee churn. Good training programs can help to ensure employees know the guidelines and act appropriately.
What else can companies do to ensure their employees are satisfied? Best practices studies asking which actions increase employee satisfaction noted the following findings.
Communication
Strong companies communicate their values. Values affect behaviour and create a strong culture, so need to be communicated consistently and often.
Leadership
Leadership is a significant factor affecting employee satisfaction and customer satisfaction. Employees look for clarity of direction, simple messages and consistent behaviour.
Employee Involvement
Best in class companies promote and encourage employee engagement in solving company problems. They also solicit and use employee ideas for continuous improvement. If employees are allowed input about how to do their jobs, they are happier and will do a better job.
Feedback
Employees who receive continuous, constructive feedback on their performance are more likely to meet their customers' needs.
Treat them Right
Employees treat their peers and customers the same way they are treated by management. Just as children learn what they live, so do employees. Excellent customer service must be modelled throughout the company.