Link the Customer Experience with Employee Engagement

A deep understanding of customers and employees is vital to making informed business decisions and reaching business objectives. While most companies are researching and collecting feedback from these groups, many are not integrating this information to drive real business advantages. We suggest a simple decision and prioritization tool for integrating data to support business objectives, and maximize the value of customer surveys and Employee Engagement surveys.

In the following case, we worked with a large retail chain, where the key challenge was to optimize the basket size in each store. Earlier, we have found that the basket size is influenced through the following relationships:

  • High Employee Engagement is a key driver for superior Customer Experiences.
  • Superior Customer Experiences is a key driver for higher basket sizes/Share of Wallet.

To leverage on this knowledge, we suggest a framework to combine this data and a prioritization tool to act accordingly. Our goal is to provide each store with relevant targets and actions to drive higher basket sizes.

In the first layer of prioritization, we map each store according to their Employee Engagement and the Customer Experience.

Figure 1: Combining the Customer Experience and Employee Engagement

LinkCustomerAndEmployee1

This plot gives us insights into how departments are performing on key indicators. Using this knowledge, we can divide the departments into four categories,

  • Fix – Employees and customers are disengaged and fundamental problems exists in the departments. Make sure that these departments have your full attention, since they are most likely destroying value.
  • Keep on improving – Employees are highly engaged, but it is not paying off in terms of the Customer Experience. Keep on improving, and the Customer Experience will certainly follow.
  • Prioritize – Although the perception of Customer Experience is high, Employee Engagement is low. We expect that the low Employee Engagement eventually will drive the Customer Experience down. Prioritize to prevent this.
  • Capitalize – Departments with high levels in both metrics. The next step is to capitalize on this and model their performance for others.

The next layer of prioritization maintains the segments from the first map, but combines the data with potential, to make sure we can relate the results to real business impacts. Potential calculated as actual basket size, share of wallet or market share equivalent. See figure 2:

Figure 2: Customer Experience and financial potential (basket size or share of wallet)

LinkCustomerAndEmployee2

What the above framework gives us is a clear understanding of where each department is in relation to employees and customers. Furthermore, it points out clear actions for driving financial results. For example, we see three green departments in the grow segment. Their Employee Engagement and Customer Experience are outstanding, but their Share of Wallet is still too small. Focusing on growing customers’ basket sizes will definitely yield instant results. Likewise, we are seeing several red departments in the Fix area – low employee and Customer assessments – but high Share of Wallet. If the performance of these departments is not fixed, they will most likely lose revenue.

We work with integrated data and ensure that you are getting the full impact of your data. Collecting and unifying data is an achievement, but the real benefit comes when a business can integrate several data sources and make use of the generated insights.

The world we live in is more data driven than ever before, but how do we find the right connections in our data?

Read more

"What we find is a clear link between the employee motivation, and the resulting Share of Wallet"

Read more
×