Front Line Employees Hold the Key to Long Term Growth

The strong correlation between Long Term Growth and Employee Satisfaction

I’d like to start this post by asking three quick questions. They all relate to important issues that affect your business.

  1. When was the last time you were delighted when you did business with a service company?
  2. What role did an employee of that company play in the delightful experience?
  3. Do you think you could make a guess about that employee’s attitudes toward his or her job based on what happened?

Even though great service is a rarity these days, we’ve all had at least one experience with a company that really knows how to take care of its customers. In fact, I distinctly remember a small dry cleaner in an area where I used to work. I was so happy with the service, I’d drive halfway across town to give them my business, passing other dry cleaner’s shops in the process.

Why did I go out of my way to deal with them? The employees went out of their way for me. Once, they even made a special, after hours delivery to my house when I needed something in a hurry. They also welcomed me and called me by name whenever I stopped by. That made me feel like they really appreciated my business.

If you place people first, then good customer service and profitability will follow. 

“Employee behaviors and attitudes , even more than leadership principles and ideals, communicate most directly to customers just what the company stands for.”  Fred Reichheld, Loyalty Rules!

When you get right down to it, employees have the power to start a chain reaction that leads to success. Here’s how it goes in reverse. Customer Loyalty drives long-term growth. Customer delight drives loyalty. Appreciation and interest drive customer delight. And guess who’s in the best position to show your customers that you really care about them? That’s right. Front line employees.

Not everyone understands the connection

Despite the obvious importance of employee satisfaction, the great recession has resulted in many companies not placing nearly enough emphasis on developing and retaining employees. Consider these survey results:

  • 84% of employees feel that their workplace is headed in the wrong direction according to a November 2011 survey by Right Management
  • According to a June 2011 study from Mercer, one in two US employees are either actively looking for work or have mentally ‘checked out’

“Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation,” said Mindy Fox, a senior partner at Mercer.

Of course, great leaders have always known that taking care of their employees is important. The companies that have continued to make employee satisfaction a priority will come out of the current economic environment stronger and will ultimately put a lot of  distance between themselves and the competition.

If your employees are happy, customers see that, and they respond by giving you more of their business.

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The Difference Between Service, Satisfaction, & Loyalty

In an attempt to create a loyal following, Leaders are often disappointed because they confuse the concepts of Service, Satisfaction, and Loyalty. While error-free service and pleasant interactions are key components to any product offering, loyal customers are the only ones that can help you grow your business (see Raising the Bar on Customer Satisfaction http://wp.me/p28Mqi-7) and create the environment that leads to continued innovation.

A quick story that illustrates the differences between Service, Satisfaction, and Loyalty:

SERVICE

Mr. Smith walks into a banking center with tall pillars, marble, mahogany teller windows – he could feel “money” in the air. Then he saw a maze with 10 people in line. Since there were 10 tellers, he figured he was 2nd or 3rd in line. So far so good.

He came to the head of the line and looked to the right. Then he heard a woman shout from the left “NEXT!” As he approached the teller, she was looking down – but when she looked up, he was certain that she hated him.

When he asked for change for a $50, she quickly counted out the change, handed it to him, and yelled “NEXT!”

He checked his change, and it was correct – No Defect!

SATISFACTION

Now what if at the head of the line he heard “Could I please speak to the next gentlemen in line?” He was given correct change and was thanked for coming.

This is satisfaction.

LOYALTY

Even better, what if at the head of the line he heard: “Mr. Smith can I help you?” When the change was counted out, he was handed $45 in change and 5 silver coins because “I know you collect them.”

This is Loyalty.

LOYALTY FUNDAMENTALS

Of course there is more to earning a customer’s loyalty, but there are some fundamental truths that cut across industries:

  1. A great product is reliable and personal. This means no defects, timely delivery, and delivered with appreciation and care for the customer.
  2. A brand is a promise. If a company doesn’t keep that promise in every interaction, they are not seen as trustworthy. If they aren’t trustworthy, they are seen as liars which ultimately chips away at the brand.
  3. Employee Engagement. Every employee in the company knows the values top to bottom and the values are aligned with the customer’s needs.

In addition to more referrals and expanded share of wallet, employees discover unmet customer needs when their primary focus is delivering a great experience. These unmet needs are the seeds of innovation that ultimately keep you ahead of the competition.

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