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Show how communication improves employee and customer satisfaction
By Kim Harrison,
Consultant, Author and Principal of www.cuttingedgepr.com
Research consistently shows a strong correlation between employee satisfaction and customer satisfaction.
For instance, retail giant Sears, Roebuck & Co. (annual revenue US$50 billion), found every 5% increase in employee attitude scores brought a 1-3% increase in customer satisfaction and a 0.5% increase in revenue. Good communication played a significant role in greater employee satisfaction.
An Australian survey in 2007 found similar results. Conducted by Nigel De Bussy from Curtin University, the study found that companies actively engaging in stakeholder orientation activities achieved stronger financial performance, with a correlation of 0.84 for employee programs compared with the correlation for customers (0.36), suppliers (0.35) and communities (0.32). The correlation of financial performance with shareholder orientation was minimal at 0.08.
These studies don’t actually prove that happier employees create happier customers and therefore higher profits, but they show a very strong correlation, which is almost the same thing.
Here’s how you can play a role in improving employee satisfaction and customer satisfaction. You can either initiate this whether you are on staff or as a consultant.
In conjunction with the marketing department, conduct focus groups of employees to identify which key customer satisfaction factors are related to interactions with employees.
Ensure you compare employees and customers on the same basis. For instance, compare customers and employees from the same city or from the same branch if you are involved in a branch-based organization.
If you engage in this activity you will be able to show senior management the communication link between happy employees and happy customers.
About the Author
Kim Harrison is a recognized authority in the public relations field. His website, www.cuttingedgepr.com, provides a wealth of informative articles and resources on public relations techniques and management.
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