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  • Writer's pictureAlex Kumle

How does EX impact CX?

In today's fast-paced and highly competitive business environment, the connection between Employee Experience (EX) and Customer Experience (CX) is more crucial than ever. Organizations across the globe are recognizing that the key to unlocking unparalleled customer satisfaction lies within the very heart of their operations: their employees. This blog dives deep into the compelling evidence that demonstrates how a positive EX directly influences CX, thereby driving growth, profitability, and long-term success.

First and foremost, a study highlighted by Fow Media reveals a striking statistic: companies with a highly engaged workforce have reported a 19.2 percent growth in operating income over a 12-month period. This statistic is not just a number but a testament to the power of employee engagement. It underscores the idea that when employees are genuinely engaged and invested in their work, they are not only more productive but also more inclined to contribute to a positive customer experience. Engaged employees are the ones who go the extra mile, not because they have to, but because they want to. This intrinsic motivation is what leads to genuine customer satisfaction, fostering a loyal customer base that is key to sustained growth.

Moreover, the engagement level of employees has a significant impact on customer perceptions of a company. According to the same source, 79 percent of employees at companies with above-average CX scores are highly engaged, compared to only 49 percent at companies with average or below-average CX scores. This correlation vividly illustrates how a vibrant and positive EX can lead to superior CX. Engaged employees are more likely to understand and empathize with customers, leading to interactions that are not only more effective but also more memorable.

Happy customer interaction
Happy Employees give better customer interactions.

Further emphasizing the importance of employee engagement, business units that rank in the top quartile for employee engagement and connection scores have been found to exhibit 10 percent stronger customer metrics than those in the lower quartiles. This data point illuminates the direct link between how employees feel about their workplace and how customers perceive the brand. A positive and engaging work environment creates employees who are enthusiastic advocates of the brand, transferring their satisfaction and loyalty to the customers they interact with.

The financial implications of investing in EX are equally compelling. Companies that prioritize employee experience are reported to be four times more profitable than those that do not. This remarkable statistic serves as a powerful incentive for businesses to invest in creating a workplace that values, supports, and empowers its employees. The rationale is clear: when employees feel valued and part of a cohesive, supportive environment, their productivity and creativity soar, leading to innovative solutions that enhance CX and, consequently, profitability.

Delving deeper into the mechanics of EX, it's evident that it encompasses a range of factors from workplace culture and values to opportunities for growth and professional development. Creating a positive EX is not about superficial perks but about building a foundation of trust, respect, and empowerment. When employees feel trusted and empowered, they are more likely to take ownership of their work and the customer experiences they create. This sense of ownership is crucial in fostering a culture where employees feel they can make a difference, leading to proactive and creative customer service solutions.

Pleasant customer engagement with contract signing
Creating a welcoming environment sets the stage for a positive customer experience.

The narrative surrounding the importance of EX in driving exceptional CX is further enriched by the backdrop of the COVID-19 pandemic. The global crisis has brought to the forefront the undeniable connection between how employees are treated and how they treat customers. Organizations that navigated the pandemic successfully were those that prioritized their employees' well-being, understanding that a stressed and burnt-out workforce could not deliver the level of service required to maintain high customer satisfaction levels. The pandemic underscored the need for empathy and flexibility in the workplace, traits that are essential in building a resilient and adaptive workforce capable of meeting evolving customer expectations.

In conclusion, the data and insights presented paint a clear picture: the path to delivering outstanding CX begins with creating an exceptional EX. The evidence is undeniable - engaged, satisfied, and empowered employees are the cornerstone of a successful customer experience strategy. As businesses navigate the complexities of the modern marketplace, prioritizing EX is not just a moral imperative but a strategic one. Investing in the well-being and development of employees is investing in the future of the company itself. The message is clear: to win the hearts of your customers, start by winning the hearts of your employees.


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