Happier Employees = Higher Customer Satisfaction and Sales
As companies
strive to put customers first, latest research published on Harvard Business
Review offers new insights into how that could be achieved: through happy
employees.
Happy Employees = Happy Customers
Researchers studied
data from 293 large employers in 13 different industries, including their
average overall Glassdoor rating (given by their employees on a scale of one to
five) and ACSI score (that measures customer satisfaction on a scale of zero to
100) annually from 2008 to 2018. They found a strong statistical link between
the slightest increase in employee well-being reported on Glassdoor and a significant
rise in customer satisfaction; precisely each one-star improvement in Glassdoor
company rating resulted in up to 3.2-point increase in customer satisfaction.
To verify
this is not a coincidence, researchers studied timelines closely and found that
in most cases, employee satisfaction rises or falls first, followed
by changes in customer satisfaction later.
The Financial Impact
According to
a published study in the Journal of Marketing Research, an organization’s ACSI
score has a direct effect on consumer spending and sales, and can predict how
well the firm will perform in terms of corporate revenue and earnings growth.
Moreover, a
study published in the Journal of Marketing found that each 1% improvement
in ACSI customer satisfaction scores for an employer was associated with a 4.6%
boost in its overall stock market value. Applying this to the findings above,
the possible impact of a one-star improvement in Glassdoor employer ratings
means an increase of 7.8% to 18.9% in long-term market valuation.
Employees Come First
The
takeaway? It pays off to be customer-centric, but when employee morale is your
business’s last concern, the results you’re after might never happen. If the
business invests in rewarding employees
and prioritizing employee recognition and happiness, it’ll be the first to reap
the gains.
Sources:
Harvard Business Review
The Journal of Marketing
The Journal of Marketing Research
American Customer Satisfaction Index
Comments
Post a Comment