Improve Agent Satisfaction to Raise Customer Loyalty and Company Profitability
October 04, 2010by Mike Cholak
Since Harvard researchers first wrote about “The Service Profit Chain” in 1994, much additional research has established the connection between employee satisfaction, customer satisfaction, and company profitability. Convergys proprietary research in 2010 on the customer experience reinforces this. Our research cites a strong relationship between employee loyalty at the agent level and a company’s overall customer loyalty, meaning the two trend closely together. When employee loyalty rises, so does customer loyalty; and, when employee loyalty declines, so does customer loyalty.
Unfortunately, the state of employee sentiment today is generally low. Respondents in our 2010 research study indicate that some 44 % do not believe their company values them as an employee; 34 % of respondents said they were not satisfied with their employer and do not plan to remain with the company for more than a year; 32 % would not recommend their company to friends or colleagues; and 41 % indicated they would switch companies for a 10 % increase in pay.
It’s hard to blame employees for feeling the way they do. Across the board, one-third of our survey respondents said they do not have access to the data necessary to deliver an excellent customer experience or do not have the necessary tools, and one-quarter did not get necessary training or were not empowered to resolve customer issues.
No doubt, the recent recession has limited the ability of companies to make the investments necessary to support employee preparedness and bolster employee satisfaction. This in turn may have negatively impacted customer satisfaction and loyalty, and ultimately margins and profitability.
However, with recessionary limitations slowly loosening, it’s time for companies to invest in corrective action.
Here are three ways companies can turn employees’ frowns upside down:
- Train and equip agents to deliver what customers want most –knowledgeable agents that can resolve their issue. Convergys research has shown 71 % of employees would rather be given the time and tools to solve complicated problems themselves versus transferring a customer to a special help desk.
- Empower agents to solve customer issues. Some 84 % of employee said they would rather be held accountable for handling customers’ issues versus someone else.
- Educate all levels of the organization from agents to top executives by sharing customer feedback and data.
The bottom line: Satisfied employees equal satisfied customers equal improved profitability.
What do you think?
For more insights, check out the following:
Fact Sheet: Employee Perspectives on Customer Experience
Webinar: Employee Perspectives on Customer Experience
Mike Cholak is a consulting practice executive in the Customer Management line of business at Convergys. He leads a team dedicated to delivering a full suite of consulting services to the Company’s clients that help leverage customer intelligence and feedback to optimize long term customer loyalty and profitability.
