The Customer Experience Podcast
The Customer Experience Podcast

Episode 134 · 7 months ago

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


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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Orif, 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,learn how sales marketing and customer success experts create internalalignment, achieve desired outcomes and exceed customer expectations in apersonal and human way. This is the customer experience podcast, here'syour host, eath and beaute. When you really want to drive revenue growth,where do you look first? Where do you look to spend more time or pay moreattention or make more investments when you want to drive revenue growth? Wheredo you look first, in this short episode of the CustomerExperience Podcast in the CX series on BTB growth I'll give you two pieces ofevidence that point to the right answer, and it's probably not what first cameto mind. My name is ethen bute. I am...

...your host, I'm also chief of angelistat Bombam and Co, author of a book called Rehumanize Your Business. Mycoauthor is a longtime team member, longtime friend Chief Marketing Officerat Bombam, Steve Passonelli, and he and I are working on another book inworking on it. We interviewed Matthew Sweezie from sales force. Now I hadinterviewed him before here on this podcast and it was great to talk withhim again. In our conversation, he brought up a recent piece of researchby Forbes insights, along with sales force. The piece they published wascalled the experience equation. How happy employees and customersaccelerate growth. It was based on interviews with hundreds of executivesfrom companies with at least twenty million dollars in revenue, and I'mgoing to simplify three key takeaways here. First, they found that greatemployee experience drives great customer experience. Great ex drivesgreat CX. Second, they found that great...

...customer experience or Great CX drivesrevenue growth and third, they found that great CX reinforces, but doesn'tdrive great ex, that's to say, having a great customer experience is a positivereinforcement for your employees, but it doesn't drive better employeeexperience. So what does that mean? That means, if you want to driverevenue growth, you need great customer experience, but if you want to drivegreat customer experience, you need great employee experience. So when wethink about revenue growth, we so often look at all the different conversionpoints. We look at the customer life cycle. We look at the customerexperience and that's all good, but what often gets overlooked is ex thenecessary precursor to great customer experience. A great quote in that forbsinsight piece comes from Tiffany Bova, global chief growth, evangelist atsales force in a team member of mats in the study, she's quoted is saying thefastest way to get customers to love.

Your brand is to get employees to lovetheir jobs. That's right. If we want to drive revenue growth, we need to lookto our employees and the employee experience and as soon as we have thisconversation, and I found the study from forbs in sights and sales forcewhich I'll link up by the way, if you go to Bombomcom podcast, you can accessthe final report and this book that I'm about to share with you. When I heardthose results of this very recent survey, it reminded me of a book that'smore than twenty years old, it's written by three gentlemen from HarvardBusiness School, James, l, Haskett, W Earl, Sasser, junior and Leonard Chlessinger the service profhit chain, how leading companies link profit andgrowth to loyalty, satisfaction and value. They looked at the two main outcomesthat pretty much every business is looking for: Driving Revenue, growthand driving profitability and what they were able to do is link back in a chainto internal service quality, which is...

...their language for employee experience,recruiting hiring onboarding equiping engaging developing investing in thefeelings, the attitudes and the CO workers of every single one of ouremployees. Spending more time focused on internal service quality, payingmore attention to internal service quality, making more investments ininternal service quality and employee experience is how we drive revenuegrows, so here's how they broke it out and again. These are quantified provenlinks in a chain of events. Increasing internal service quality drives higheremployee satisfaction. Higher Employee Satisfaction driveshigher employee retention and higher employee productivity. Okay, so we haveincreased employee satisfaction which drives retention and productivitytogether those drive what they call...

...external service value, so internalservice quality drives external service value, not just surprise and delight,but desired outcomes and real impact for customers, and when we driveexternal service value, we drive customer satisfaction which drivescustomer loyalty which drives revenue, growth and profitability. It's afantastic reed I'll link that up at Bombamcom podcast as well. In addition,there's a heavy weight article at HBR, DOT orb. That kind of summarizes theessence of it and illustrates the model of the service profit chain. Again,you'll find all that at Bombamcom podcast and the key takeaway here isyes, we do need to focus on the customer experience. We do need tofocus on all of the stages across a customer life cycle from Le Generationand lead conversion through customer...

...retention and customer expansion.Loyalty advocacy all of that, but underneath it all foundational to itall is investing time and resources in our team members. In the employeeexperience into internal service quality, don't overlook it, make it abigger part of the conversation. It is a necessary precursor to an excellentcustomer experience. Again. My name is Ethan Bute you can reach me, I'mLingdin. Last name is spel beute. You can email me ethen ethan at Bombamcom.I'd be happy to hear from you. I appreciate you listening. I hope youfound this helpful, clear communication, human connection, higher conversion.These are just some of the benefits of adding video to the messages yoursending every day. It's easy to do with just a little guidance, so pick up theofficial book. Rehumanize your business, how personal videos, accelerate salesand improve customer experience learn...

...more in order today at Bombamcom Bock,that's Bo, MB, bomvcom fuck. Thanks for listening to the customer experience.PODCAST remember. The single most important thing you can do today is tocreate and deliver a better experience for your customers, continue. Learningthe latest strategies and tactics by subscribing right now in your favoritepodcast player, or visit Bombomcom podcast.

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