Employee Insight Drives Performance

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Employee Insight Drives Performance M ost organizations regularly survey employees, but these programs are typically limited to

measuring employee engagement, identify-

operations or policies in other parts of the company that affect their ability to serve the customer.

Most organizations not only miss the opportunity to solicit

ing the drivers of employee satisfaction, and soliciting sugges-

systematic input from their employees, even worse, they inad-

in-depth questions about the workplace, rarely do they ask the

critical observations. Surveys in which employees are solicited

tions for improving working conditions. While surveys include questions whose answers could most dramatically affect the

overall quality of the customer experience and efficiency of

operations. Companies miss the opportunity to ask, for example, “What stands in the way of providing the best possible customer service? What do you need to perform your job better? What

do you think is key to attracting and retaining the highest value

vertently create cultures that make employees reluctant to share for a 360-degree view of the company’s key performance mea-

sures can fill these voids. For example, STAT Resources, Inc. has just developed a new Employee Generated Optimization (EGOSM) survey program that is the first to use employee insight in this way.

A corporate EGO survey not only gives Care a voice that

customers?” Yet, apart from customers themselves, no one is

can be heard in the C-suite about what stands in the way of

employees on the front line — staff who also understand the

cross-company, also enlists the entire organization in reaching

better positioned to report on customer experiences than the operational challenges and constraints in providing a stellar customer experience.

Employees across the organization — from front-line

sales reps to backroom IT specialists — all may have valuable intelligence about what will drive measurable improvements in

world-class service and market dominance, but, if implemented these goals. Even surveys of just the Care departments can give an enormous leg up on operational and quality improvements. A lesson from the security industry

A major security company was eager to launch service qual-

products and service quality delivery. However, there is probably

ity improvements to increase customer satisfaction. Company

obstacles to success than the frontline of your Care organiza-

phone with customer service, the higher the customer sat-

no group in the company in a better position to identify the

are rarely asked to, and of course, have little if any control over

www.customercarenews.com

Fall 2011

tion. While Care reps can often identify these obstacles, they

research showed that the less time a customer spent on the

isfaction scores were. In response to this finding, company management offered service representatives financial incentives

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to reduce time-spent-in-queue and for decreases in total average call length. Surprisingly, while the company dramatically

increased the speed of response and call completion, customer

• Take care to align rewards and recognitions with objectives.

satisfaction plummeted — along with employee morale. Why?

Benefits of employee involvement

reason that shorter calls were associated with more satisfied

tomers can be difficult, and certainly expensive. Consumers

time-satisfaction link was often simply the result of quicker

are especially delighted or distressed. Customers are growing

Had management enlisted employees in understanding the

customers, they would have learned that reps believed that the resolution time for simpler issues. More difficult and complex

issues took more time and effort to resolve. When surveyed, employees agreed that reducing time in queue was relevant

to customer satisfaction, but that simple remedies such as

removing confusion in contract terms to reduce logjams would improve call satisfaction also. Similarly, they advocated aligning incentives with problem resolution rather than speed.

Implementing changes to contract terms had positive

Collecting rich and insightful feedback directly from cus-

are often reluctant and inattentive participants unless they increasingly weary of being asked about their experiences and perceptions in every aspect of their life — from the store that sells them pens to the restaurant where they had dinner the week before. Fortunately, it is possible to learn almost as much

by asking the right questions of employees as you can from trying to extract insights from over-surveyed consumers with little motivation to provide detailed or reflective answers.

Employees offer quick, efficient and economical perspectives

impacts on customer satisfaction, but when incentives were

that research has shown are highly consistent with those of cus-

reps and teams for percent of “first-time fixes,” customer satis-

by sensitivity to organizational constraints and challenges. This

shifted from rewards for throughput to rewards to individual faction really soared.

There are three, perhaps obvious, but frequently overlooked

lessons from this:

• Before launching any improvement program, examine

tomers themselves. In addition, employee feedback is enhanced understanding is key to identifying feasible improvements to the customer experience.

Most robust employee surveying

EGO surveys replace traditional employee surveys and

and validate all assumptions.

certainly complement — and perhaps even replace — customer

sure the true drivers of quality are understood.

pany performance in four major areas, each of which has two

• Do not confuse correlation with causation — make

surveys with a structure for a 360-degree examination of commain components (see Figure 1):

• Human Capital Optimization

HR Management: Does the com-

pany offer attractive compensation, benefits and working conditions?

Employee Loyalty & Engagement: Do employees feel valued, empowered and supported?

• Customer Centricity

Customer Retention: Do we create an environment that inspires customer loyalty? Customer

Relationship

&

Communication: How well do we

communicate with and listen to our

Fall 2011

customers?

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Customer Care News


• Product and/or Service Quality

Value Proposition: What do customers GET from our

An extra benefit of mining employee intelligence

It is now commonplace to recognize the strong relation-

products and services?

ship between employee loyalty and satisfaction and the loyalty

customers have problems or need support?

employee feedback to guide improvements becomes an improve-

Care & Support: How well do we handle issues when

• Brand & Market Dominance

Brand & Positioning: What is communicated to

the market and company stakeholders to create dominance?

Sales & Acquisition: Are we effective in acquiring new customers?

Typical results can then be displayed in a radargram

(see Figure 2). Here we see a company that is quite strong in

typical employee loyalty and HR measures, but is fairly weak in

customer relationship and communication as well as care

and satisfaction of customers. Here, the very act of soliciting ment in itself, communicating to employees that their opinions are valued. In changing the communication culture of the sys-

tem and enlisting employees as partners in change, inevitably, the end result is increased morale and satisfaction. Satisfied employees are more likely to stay put, and their tenure provides

their organization with a knowledgeable, experienced and stable workforce — the kind of workforce that is most likely to lead to happier customers. And not only does improved employee

satisfaction lead to increased customer satisfaction and loyalty, it works the other way around too: satisfied customers improve employee satisfaction. And around and around it goes. CCN

and support, resulting in low scores in customer retention.

Susan Ellerin, Ph.D., is the founder and president of STAT

positioning, value proposition, and sales and acquisition,

for STAT. STAT has worked with many high-technology,

Why is this? The company scores well in brand and indicating that the product or service being delivered is of reasonable quality and that it is successfully acquiring good potential customers. Does the company need to introduce loy-

alty programs? Review customer care processes? Overhaul its can provide insight that would help to identify problem areas and possible fixes.

www.customercarenews.com

financial, consumer products and services organizations over the course of its 30-year history. Ellerin specializes in focusing senior management teams on interventions that have immediate

and sustainable impacts on the loyalty of high-value customers, improved operational effectiveness, and increased market domi-

Fall 2011

communications strategies? Employee feedback in these areas

Resources, Inc.; Cathryn Noyes is the director of insight research

nance. STAT can be reached at 617-340-2173 or via e-mail at cnoyes@stat-resources.com or sellerin@stat-resources.com.

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