CX and EX: A Match Made in Heaven
How Companies Can Increase Revenue by Linking their CX and EX
When you think about the companies with the best customer experience such as Google, Slack, and Facebook, would you be surprised to hear that these companies also appear on Glassdoor’s list of best companies to work for? Is it just a coincidence? A number of recent studies show the inseparable link between EX and CX.
Customer experience (CX) encompasses every interaction a customer has with your company or product throughout their customer journey. CX spans from the experience a customer has purchasing your product through using it and expanding its use. NPS and Churn rate are the most commonly used metrics to measure CX today.
Employee experience (EX), looks at the employee as the “customer” and evaluates the employee's relationship with their company. An employee’s experience goes beyond their daily tasks or work/life balance, EX extends to how valued they feel at work, the culture of the company, and their work environment. EX is often measured using employee satisfaction scores, eNPS, and employee retention rates.
Sounds like there is a common link between them. Is there any data that support this? turns out there is. In a study conducted by the Aberdeen Group it was found that companies with employee engagement programs enjoy 233% more customer loyalty, and in turn see a 26% increase in annual recurring revenue (ARR). Why do you think customers are more loyal?
Well, the experience they have with happy employees is just better and they are willing to pay for that experience. A big missed opportunity for many companies is not focusing enough on EX. Employees are your biggest advocates and your best salespeople. By neglecting your EX and only catering to the customer, you create an environment where you risk having non engaged employees, which negatively affects business.
According to a study conducted by Qualtrics, 85% of highly engaged employees are willing to stay late after hours to finish unsolved work while only 28% of non engaged employees were willing to do so. Additionally, the study found that 88% of engaged employees are likely to recommend their company’s products or services to someone who might need them. While the study showed that only 18% of non engaged employees were willing to do so.
Simply put, it is crucial that employees feel empowered and valued in their working environment. Employees with higher levels of satisfaction are more creative, more open to collaboration, and are more productive. More engaged employees will make it easier for your customer to interact with your business making them likely to do business with you again. Not only are they likely to continue doing business with you but they are also likely to bring along new customers with them. Despite the value of EX on CX, many companies are still not investing enough resources in EX.
The first step in improving your EX is to take a pulse using a survey. In order to do so, it's important to have the right tools, processes, and experts in place. Tools like Medallia can help you send surveys and centralize data in a way that's easy to analyze. Partnering with an EX vendor can help you choose the platform that best meets your organization’s needs.
After you’ve sent the surveys it's important to have a software such as Medallia to store and track all of this data with a friendly UI that makes it easy to navigate through. Now that you’ve rolled out your new survey with your expert partners, you can get together and analyze the data to formulate your employee engagement program.
Common employee engagement programs are personal coaching, wellness programs, and employee lead teaching programs. Implementation does not mean the job is done, employee engagement programs are ongoing and require constant attention. If you do this well, you’ll see a rise in CX metrics such as NPS which you can also measure through survey tools and data analytics platforms.
As the data suggests, EX and CX are inseparable. Armed with the right tools and process, you too can make employees feel empowered and delight your customers.
Itamar Golomb, Intern