We often hear the old business saying that "the customer comes first". But in reality, the quality of the customer experience is decided before the customer even engages with the company: the key is the satisfaction and appreciation of the staff. According to a recent study by Forbes and Salesforce, 70% of companies found that a better employee experience leads directly to a better customer experience.
In addition, companies that manage both employee and customer experience at the highest levels grow twice as fast as those that lag behind. And for good reason - employee satisfaction and engagement are closely linked to customer satisfaction.
Simply put: if employees feel good about themselves and value their work, they will pass that feeling on to customers, setting off a positive chain reaction towards business results.
Why does staff satisfaction affect the customer experience?
There is plenty of research and practical examples to show that happy, motivated employees deliver better service. When employees are engaged, they are willing to go above and beyond their job description to ensure that customers have an exceptional experience.
Conversely, if they feel ignored, undervalued or stressed, the negative impact will inevitably spill over into their interactions with customers - leaving no one satisfied in the end.
So it's no surprise that enthusiastic, valued employees are generally more attentive to customers' needs and more pleasant to interact with - the hallmarks of excellent customer service.
The customer experience, in any business, is affected by every single employee, even those of external subcontractors or related service providers such as logistics, warehousing or courier services, yet in many cases it is not addressed in such a complex way. The administrative staff in the background are affected as much as the front line worker serving the customer. However, only motivated, enthusiastic and respected employees can ensure a good customer experience in the long term., at the same high level support, it is essential to develop an internal motivation and reward system for employees.
So a crucial element of effectiveness from the company's perspective is that each employee is aware of the complex factors that influence the customer experience and that their role is a significant element that builds the whole, even if they may not have direct contact with customers. Therefore I believe it is important that the customer experience strategy is embedded in the day-to-day running of a business in the same way as the business plan and should be a key part of management decision-making.
Timi Nagy
Customer Experience Specialist
ugyfelelelmenyspecialista.hu
What happens if staff are dissatisfied?
This impact is particularly critical in the services sector. Here, the employees themselves are the "product": the customer judges the company by their behaviour and mood. Even if a hotel or restaurant offers an impeccable product, an unfriendly welcome can easily ruin the guest's experience. The impact is often as serious as if the service itself were faulty. An empathetic smile or a helpful attitude is as much a part of the customer experience as the quality of the product on offer, and often has an even greater impact on customer satisfaction.
The customer experience starts from within: if the frontline employee is satisfied and motivated, this is immediately reflected in the service they provide to the customer.
The power of constant recognition - making positive feedback a habit
One of the most effective ways to increase employee satisfaction is through continuous recognition and positive feedback. Employees feel truly valued when they receive more than just annual praise. It is important that they also receive regular feedback on a day-to-day basis that their work matters.
Beeward provides a modern solution: the platform allows for instant, public recognition from colleagues and managers alike, integrated into day-to-day operations. Regular positive feedback boosts employee confidence and engagement, and even reduces the risk of burnout.
How does positive feedback affect team morale?
In other words, recognition is the fuel of everyday life, and when it becomes a regular feature, it can make an incredibly positive difference to the lives of any team.
Using Beeward also helps to make team members more aware of each other's efforts, which strengthens cohesion and trust between colleagues. This kind of recognition culture builds a positive company atmosphere from within, which is also felt externally by customers.
Street Kitchen example: recognition is contagious
A well-functioning recognition programme is not only a top-down reward, but also encourages employees to recognise each other's work. When team members also praise each other, it makes the culture of feedback more authentic and natural. In this way, maintaining motivation is not just the job of managers. Colleagues pull each other forward. A good example is the Street Kitchen, where Beeward has become part of everyday life.
My colleagues started to encourage and reward each other to perform better. They realised that if you give positive feedback to others, you get positive feedback back. So it's no longer just my job to praise colleagues every time they do something well - it's a process that now works amongst ourselves, without me.
Beáta Major
Head of Operations and HR
Street Kitchen
As Beáta Major says, a well-designed internal recognition system can help employees motivate each other. Positive feedback becomes "contagious": those who receive are more willing to give. This creates a self-reinforcing cycle in which team members pay more and more attention to each other's efforts (our interview on).
The result is a higher level of team morale and cohesion, with benefits for customers. Happy, respected employees not only treat each other better, but also customers - they're more patient, more helpful and go the extra mile to ensure customer satisfaction.
Win-win: better customer experience and business success
It is important to emphasise that improving the employee experience should not just be an "internal issue", but part of the business strategy. Dedicated employees deliver outstanding customer service, which increases customer satisfaction and loyalty, which ultimately improves the company's bottom line.
Everyone wins in the process: the customer gets a better experience, the employee feels valued, the company achieves business success - and ultimately, everyone benefits. This positive cycle in management service profit chain is called. It clearly shows the link between employee satisfaction, customer experience and profit.
In summary: the journey to improve the customer experience starts within the walls of the company
If we make sure our staff feel good and appreciated, they will in return be at their best when meeting customers.
Platforms like Beeward help to make this approach part of everyday life. They encourage continuous positive feedback in a structured, transparent and playful way. As a result, the corporate culture is strengthened. Employees will be more loyal and motivated, and customers will notice: they will leave more satisfied and smiling.
Such an "inside-out" customer experience strategy is now a competitive advantage. It is the happy, engaged human face of our company that our competitors struggle to emulate.
Sources:
- Denise Lee Yohn: Engaged Employees Create Better Customer Experiences - Harvard Business Review, 2023[2][4]
- The Link Between Employee Experience and Customer Experience - Reward Gateway, 2023[5][1]
- Franck Louveau: The importance of the Service Profit Chain - EHL Insights, 2021[3][6]
- Eric Lee: How to Improve Customer Experience Through Employee Recognition - Bokka Group, 2023[12]
- Interview with Major Beata (Street Kitchen) - Beeward blog [10]
- Interview with Timi Nagy - Customer Experience Socialist [10]
