The Customer Experience Podcast
The Customer Experience Podcast

Episode 134 · 8 months ago

134. Research: To Improve CX, Invest in EX w/ Ethan Beute

ABOUT THIS EPISODE

If you want to drive revenue growth, you need to have great CX. If you want to drive great CX, you need to have great EX. In other words, the employee experience is a precursor to the customer experience.

I’m Ethan Beute, Chief Evangelist at BombBomb, host of The Customer Experience Podcast, and co-host of the CX Series on the B2B Growth Show. I’m here today to share some of the connections I made about EX while interviewing Mathew Sweezey for the next book I’m cowriting with my longtime friend Steve Pacinelli.

I love to share the things I’m learning:

- Discussion of The Experience Equation

- Discussion of the Service Profit Chain article from HBR

- Discussion of the Heskett, Sasser, Schlesinger Service Profit Chain book

- Bottom line: How internal service quality drives everything in your company

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If you want to drive revenue growth, you need great customer experience, but if you want to drive great customerexperience, you need great employee experience. The single most important thing you cando today is to create and deliver a better experience for your customers. Learnhow sales, marketing and customer success experts create internal alignment, achieved desired outcomesand exceed customer expectations in a personal and human way. This is the customerexperience podcast. Here's your host, Ethan Butte. When you really want todrive revenue growth, where do you look first? Where do you look tospend more time or pay more attention or make more investments? When you wantto drive revenue growth, where do you look first? In this short episodeof the Customer Experience Podcast in the CX series on bdb growth, I'll giveyou two pieces of evidence that point to the right answer, and it's probablynot what first came to mind. My...

...name is Ethan Butte. I amyour host. I'm also chief evangelist at bombomb and Co author of a bookcalled Rehumanize Your Business. My coauthor is a longtime team member, longtime friend, chief marketing officer at Bombomb, Steve Passonnel and he and I are workingon another book. In working on it we interviewed Matthew Sweezy from sales force. Now I had interviewed him before here on this podcast and it was greatto talk with them again. In our conversation he brought up a recent pieceof research by Forbes insights along with sales force. The piece they published wascalled the experience equation. How happy employees and customers accelerate growth. It wasbased on interviews with hundreds of executives from companies with at least twenty million dollarsin revenue, and I'm going to simplify three key takeaways here. First,they found that great employee experience drives great customer experience. Great x drives greatX. Second, they found that great...

...customer experience, or great x,drives revenue growth and third, they found that great cx reinforces but doesn't drivegreat X. that's to say, having a great customer experience is a positivereinforcement for your employees, but it doesn't drive better employee experience. So whatdoes that mean? That means if you want to drive revenue growth, youneed great customer experience, but if you want to drive great customer experience,you need great employ the experience. So when we think about revenue growth weso often look at all the different conversion points, we look at the customerlife cycle, we look at the customer experience and that's all good, butwhat often gets overlooked is x, the necessary precursor to great customer experience.A great quote in that Forbes insight piece comes from Tiffany Bova, global chiefgrowth of angelist at sales force and a team member of Matts. In thestudy she's quoted as saying the fastest way...

...to get customers to love your brandis to get employees to love their jobs. That's right. If we want todrive revenue growth, we need to look to our employees and the employeeexperience. And as soon as we had this conversation and I found the studyfrom Forbes insights and sales force, which I'll link up by the way,if you go to bombombcom slash podcast, you can access the final report andthis book that I'm about to share with you. When I heard those resultsof this very recent survey, it reminded me of a book that's more thantwenty years old. It's written by three gentlemen from Harvard Business School, JamesL Hasket, W EARL SASSER JR and Leonard a Schlessinger, the service profitchain, how leading companies link profit and growth to loyalty, satisfaction and value. You. They looked at the two main outcomes that pretty much every businessis looking for, driving revenue growth and driving profitability, and what they wereable to do is link back in a...

...chain to internal service quality, whichis their language for employee experience, recruiting, hiring, on boarding, equipping,engaging, developing, investing in the feelings, the attitudes and the COworkers of every single one of our employees. Spending more time focused on internal servicequality, paying more attention to internal service quality, making more investments ininternal service quality and employee experience is how we drive revenue growth. So here'show they broke it out. And again, these are quantified, proven links ina chain of events. Increasing internal service quality drives higher employee satisfaction.Higher Employee Satisfaction drives higher employee retention and higher employee productivity. Okay, sowe have increased employee satisfaction, which drives retention and productivity. Together those drivewhat they call external service value. So...

...internal service quality drives external service value, not just surprise and delight but desired outcomes in real impact for customers.And when we drive external service value we drive customer satisfaction, which drives customerloyalty, which drives revenue growth and profitability. It's a fantastic read. I'll linkthat up at Bombombcom podcast as well. In addition, there's a heavyweight articleat hbr Dot Org that kind of summarizes the essence of it and illustratesthe model of the service profit chain. Again, you'll find all that atBombombcom podcast. In the key takeaway here is, yes, we do needto focus on the customer experience. We do need to focus on all ofthe stages across a customer life cycle, from Lee Generation and lead conversion throughcustomer retention and customer expansion, Loyalty,...

...advocacy, all of that. Butunderneath it all, foundational to it all is investing time and resources in ourteam members, in the employee experience, into internal service quality. Don't overlookit. Make it a bigger part of the conversation. It is a necessaryprecursor to an excellent customer experience. Again, my name is Ethan, but youcan reach me on Linkedin. Last name is spelled beute. You canemail me Ethan Etjn at Bombombcom. I'd be happy to hear from you.I appreciate you listening. I hope you found this helpful. Clear Communication,human connection, higher conversion. These are just some of the benefits of addingvideo to the messages you're sending every day. It's easy to do with just alittle guidance, so pick up the official book rehumanize Your Business. Howpersonal videos accelerate sales and improve customer experience.

Learn more in order today at BombombcomBook. That's bomb bombcom book. Thanks for listening to the customer experiencepodcast. Remember the single most important thing you can do today is to createand deliver a better experience for your customers. Continue Learning the latest strategies and tacticsby subscribing right now in your favorite podcast player, or visit Bombombcom podcast.

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