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
The value of a frontline index
Driving revenue through Employee Engagement requires a strict focus on the areas of your organization creating direct value for your customers. Looking at overall averages for your employees hides the fact that important groups might diverge.
One of the most significant relationships that we see across our work with large retail and B2B organizations is that the Employees’ engagement is highly correlated with the Customer Experience. We also see that the Customer Experience is a key driver for higher revenue.
We measure Employee Engagement as an average of satisfaction and loyalty across all levels of an organization. By digging down into the differences between employees at different levels, we achieve important insights on how to improve performance.
Who delivers the impact?
What we often find, is that scores decline as you go down the hierarchy. They are often lowest among the frontline personnel. The following example displays this:
Figure 1: Frontline employees are the least engaged
Even though the example above achieved an overall score of 74, we cannot expect a Customer Experience as high. The employees in direct contact – Delivery, Customer Service and Cashiers – are averaging at 64, which indicated poor working conditions. The revenue from the Customer Experience and revenue will most likely suffer highly.
If you are not segmenting your Employee Engagement Surveys, your targets will not be sufficient to reach results. Look at the individual working functions to identify the bottlenecks. Only when all employees are engaged, your Customer Experience will follow
How your frontline affects Share of Wallet
To exhibit the financial impact of frontline personnel, we collected data about the employees’ motivation, their customer contacts and final sales. The two rows compare the highly engaged employees against the less engaged. The three columns then shows the Employee Engagement Index, their respective customers’ Customer Experience Index and the resulting Share of Wallet. This comparison allows us to identify the link between Employee Engagement and the final turnover/basket size.
Figure 2: Frontline drives Share of Wallet
What we find, is a clear link between the employee motivation, and the resulting Share of Wallet.
- High Employee Engagement drives better Customer Experiences and the result is a larger Share of Wallet.