in this issue
Connecting the Dots between EX and CX
Putting an Emphasis of the Experiences of All.
Most leaders will agree with the well-known saying, “Happy employees = happy customers.” This is especially true in a service environment where front-line staff represents the brand — they truly are the face of the organization. It is also true for all parts of the organization, from product development to marketing to supply chain and fulfillment. Every employee is a vital cog in the machine that strives to deliver on a brand’s promise at every point in a customer’s journey. If a cog is “compromised” in any way, the customer is impacted.
It goes without saying that staff who feel burned out, unappreciated, isolated, unsupported, unheard and “stuck” in their roles will not feel motivated or empowered to deliver exceptional customer experiences. If employees experience any of these feelings, companies will suffer from low productivity, retention, engagement and loyalty. And, this all leads to a poor customer experience.
There are many studies which support the connection between employee and customer experience, including a study from Forbes, which found:
- Companies that excel at customer experience have 1.5 times more engaged employees than companies with poor customer experience.
- Seventy-nine percent of employees at companies with above-average customer experience are highly engaged in their jobs, compared to 49% of employees at companies with average or below-average customer experience scores.
Many organizations aspire to prioritize the employee experience. But now, more than ever, it is critical for organizations to take these strategies a step further by making the connection between the employee and the customer, putting meaningful strategies in place to achieve the desired results.
In this article, we will explore examples of organizations that succeed in making this important connection, the common thread found in these examples and how other organizations can learn from these examples in their
own environments.
Examples of Companies That Have Made the EX and CX Connection
The two examples explored in this article are companies that are well-known for their customer experience. When they are both examined, they have not only prioritized EX, they have successfully linked EX with CX in all that they do.
NORDSTROM
There have literally been books written about the Nordstrom culture and customer experience.
It all starts with their mission, which has been embedded in their culture since the brand was founded in 1901. Among other things, John Nordstrom said, “Our commitment is 100% to customer service. If I’m a salesperson on the floor and I know that the people who own this place are committed to customer service, then I am free to find new ways to give great customer service. I know that I won’t be criticized for taking care of a customer. I will only be criticized if I don’t take care of a customer.”
While wording may have changed over the years, the company’s over-arching mission and vision have not, and incorporates a focus on the employee as well.
In fact, the Nordstrom mission statement is,
“to provide outstanding service every day, one customer at a time. A further focus is provided to Nordstrom employees at all levels with this Nordstrom goal, which is also a management mission. We work hard to make decisions in the best interest of our customers and those serving them.”
Expanding on this, the company has been quoted saying that their goal is to
“provide a fabulous customer experience by empowering customers and the employees who serve them.”
As explained in the article quoted here, the company has not always been immune to challenges. They faced labor disputes in the 1990s, but they faced it head-on and increased its focus on fostering the culture that has always been prioritized — one of collegiality, respect and personal growth. This renewed focus succeeded in driving employee satisfaction and, ultimately, substantial company growth.
In short, Nordstrom strives every day to make customers feel good and create lifelong relationships with customers. These relationships don’t just happen — people make them happen; and the company clearly recognizes this and makes the employee part of its overall vision to deliver on its brand promise.
STARBUCKS
Starbucks is another example of a company which consistently appears on lists of “best customer experience.” And, consistent with Nordstrom, it all starts with the company’s vision and how that impacts everything they do.
The company clearly states their philosophy, mission and vision on their website:
Expect more than coffee.
“From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee, but also connection. We’re a neighborhood gathering place, a part of your daily routine. Get to know us, and you’ll see: we are so much more than what we brew. We call our employees partners because we are all partners in shared success. We make sure everything we do is through the lens of humanity — from our commitment to the highest-quality coffee in the world to the way we engage with our customers and communities to do business responsibly.”
“ … everything we do is through the lens of humanity — from our commitment to the highest-quality coffee in the world to the way we engage with our customers and communities to do
business responsibly.”
Its mission is to:
“Inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.”
Further, the company’s core values support this mission by saying:
With our partners, our coffee and our customers at our core, we live these values:
- CREATING A CULTURE OF WARMTH AND BELONGING, WHERE EVERYONE IS WELCOME.
- DELIVERING OUR VERY BEST IN ALL WE DO, HOLDING OURSELVES ACCOUNTABLE FOR RESULTS.
- ACTING WITH COURAGE, CHALLENGING THE STATUS QUO, AND FINDING NEW WAYS TO GROW OUR COMPANY AND EACH OTHER.
- BEING PRESENT, CONNECTING WITH TRANSPARENCY, DIGNITY, AND RESPECT.
We are performance-driven, through the lens of humanity.
Starbucks’ mission and values are not just words on a website. The commitment to customers and internal partners (employees) is evident in recent investments announced.
In a recent announcement, Kevin Johnson, Starbucks president and chief executive officer, said, “As Starbucks celebrates our 50th anniversary we are reminded that our heritage is based on the simple concept that our green apron partners are the heartbeat of Starbucks and that success is best when it’s shared. Today, we are announcing another historic investment in our partners, knowing that when we take care of our partners, they take care of our customers, and all stakeholders benefit. This is how we continue to build a great and enduring company. One that is committed to the ideal that doing good for one another — and for society — is good for business over the long-term.”
The significant investments announced are all centered on the partner (employee) and include:
Significant wage increases to recognize and reward tenured partners while also increase minimum pay
Training and recruiting to reward referrals, adding recruiting specialists, in-store training
New technology and equipment to make it easier for partners to handcraft beverages and focus on connecting with customers
Store partner hours with a focus on forecasting capabilities to improve store staffing, testing a shifts application so partners have the ability to work shifts that meet personal needs
Partner-centered innovation with a team brought in to design and test initiatives to improve the partner experience and reduce complexity
Clearly, the strategies and investments being made support their vision and focus on supporting their partners to deliver on the company’s promise of creating exceptional customer experiences, developing customer relationships and being an important part of communities.
Common Link Connecting EX to CX
Why shine a light on these two examples? What do they have in common that other organizations can learn from?
There are two simple themes that are evident when examining these examples and why they are successful at linking EX to CX.
Both organizations:
WHAT DOES THIS MEAN?
Embedding a connected culture
It starts at the top. Both organizations have a mission, vision and values that clearly state the focus on “developing customer relationships” and “enabling and empowering employees” to deliver on those relationships. These are not just words on a poster in a conference room or featured on the companies’ websites. Customers see and feel these values in their interactions with these brands. Yes, product quality is important — customers expect it, value it and experience it. But, product is not the focus of the mission statements of either company — it is about the relationships. While product quality is important, the emphasis on creating the best customer experience every day is the focus. This cannot happen without creating a culture that empowers, enables, supports, values and satisfies employees who directly impact those customer relationships.
Connecting Strategies to the Mission
A clear mission and vision which connects the dots between EX and CX is just the first step. Both companies back that up with strategies, investments and initiatives. Take Starbucks specifically as an example — the company’s recent investments are primarily focused on employees. Yes, some of these will likely reduce costs by improving efficiencies, but some of them also may technically increase costs in the short term (i.e., wage increases). However, the company clearly recognizes that investing in areas that will directly support employees’ abilities to connect with customers will create those experiences that drive long-term loyalty and, ultimately, greater company success.
How to Connect the Dots Between EX and CX
What steps should companies take to ensure they are making the connection between EX and CX?
Ensure mission and vision clearly focus on this connection
Again, it all starts at the top, and it should be clear throughout the organization that the company recognizes the importance of EX in delivering a superior CX. Department mission and vision statements should also support the company’s mission. For example, how does the contact center support the company’s overall mission in making this connection? Every department and employee need to understand how and why their role matters.
Examine and align internal strategies and initiatives
Take a hard look all areas to determine if strategies are aligned with the mission. This includes:
Hiring / recruiting
Effective hiring and recruiting is critical in making the EX and CX connection. So, organizations must ask themselves the following: Is the organization looking for individuals that have the skills and characteristics that support the mission? Are expectations being clearly communicated during the hiring process? Are the company’s values on display in the recruiting process?
Training, development, and growth
To retain employees and ensure skills continue to evolve to meet customer expectations, organizations must ensure training and development programs allow for growth. If organizations want long-term customer loyalty, they must also strive for employee loyalty. Employees will stay where they feel connected, supported and can grow.
Recognition
Employees want to feel valued. They want to know that what they do matters and is appreciated. Formal and informal recognition programs from not only direct managers, but senior leadership, fosters a deeper connection internally and, ultimately, with customers.
Employee empowerment and enablement
Most employees want to do a good job. They want to help customers, and they want to help their company succeed. To do so, companies need to take a hard look at how empowered their employees are to create better customer experiences. Are their hands tied by policies or processes? And, do they have the tools and resources needed to deliver on those experiences?
Clear goals and metrics
Nothing creates more confusion or ambivalence than goals or metrics that do not make sense, are not realistic or are not aligned with the mission. Organizations must ensure that goals and metrics are aligned, clearly communicated and consistently reported. Most important, employees need to understand the WHY of each metric and how it impacts the customer and business success.
Diversity and inclusion initiatives
There has been increased emphasis on diversity and inclusion initiatives, and this is important not only to employees, but customers. Customers want to know they are interacting with a company that values and prioritizes diversity and inclusion. And, employees want to feel that the company works hard to create a culture that fosters both.
Corporate social responsibility
Today’s workforce cares deeply about a company’s value system. They want to feel like they are not only contributing to a company’s bottom line, but also to a greater purpose. Customers also pay attention to how organizations support community, the environment and the greater good.
Communication and transparency
This applies to both employees and customers. Trust matters, and trust can be eroded quickly with poor communication and lack of transparency. Employees want to understand the good, the bad and the ugly so they can be part of the solutions. And, employees need to feel like they are equipped with information to be open and honest with customers as well. It goes without saying that transparency with customers is critical — whether customers interact with an agent, a website or a bot … and regardless of where they are in their journey with the brand. They expect clear and honest communication.
Consistently communicate how strategies and goals support the mission
As new initiatives are launched, it is important to communicate to staff the “why,” and the impact it will have on both the EX and CX. By consistently making this connection, organizations will have greater buy-in, and employees will have faith that the organization is truly “walking the walk,” and values the importance of EX on CX. As in the Nordstrom and Starbucks examples, employees clearly understand why what THEY do matters and, in turn, feel empowered to deliver on the experiences valued by the company and customers.
Conclusion
In summary, delivering on CX has long been a competitive differentiator and now, more than ever, this is true. Leading companies recognize that gaining the trust and long-term loyalty of customers is no longer solely impacted by product quality. The end-to-end experience is critical, from the shopping experience to customer support and everything in between. So, every employee has a direct and real impact on that experience. Organizations that understand the link between EX and CX and take thoughtful action to ensure culture and strategy connect the two will come out on top.
