Posts Tagged ‘staff satisfaction’

Happy Staff Equals Happy Customers

September 3, 2019

I have seen a couple of reports this week that demonstrate that there is a correlation between happy staff and happy customers. I am sure this feels intuitively true to many of you but it nice to see this quantified.

Glassdoor research explored data for 293 companies across 13 industries between 2008 and 2018 in order to identify the link between employee satisfaction and customers satisfaction (using the American Customer Satisfaction Index, a benchmark gauge of shoppers’ sentiment). This study found that a one-point improvement in staff satisfaction rating (on a five-point scale) translated into a statistically significant 1.3-point increase in customer satisfaction (rated from zero to 100). This correlation is strongest in categories where there is a higher percentage of staff interacting directly with customers, in these categories a one-point gain in employee satisfaction rating raised that of customers by 3.2 points.

Interestingly, previous research by Gallup has shown that when businesses work hard to ensure their employees are happy this results in a “direct and significant impact on your bottom line” (Gallup’s The State of the American Workplace report). This research found that employees who are engaged are more likely to improve customer relationships, resulting in a 20% increase in sales. In addition to this, Glassdoor says research has demonstrated that “higher customer satisfaction scores are linked to higher company valuations”.

So maybe it is time to spend less time worrying about your NPS score and more time worry about how satisfied your staff are.