The Customer Experience Podcast
The Customer Experience Podcast

Episode 134 · 1 year 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 customer experience, you need great employee experience. The single most important thing you can do today is to create and deliver a better experience for your customers. Learn how sales, marketing and customer success experts create internal alignment, achieved desired outcomes and exceed customer expectations in a personal and human way. This is the customer experience podcast. Here's your host, Ethan Butte. When you really want to drive revenue growth, where do you look first? Where do you look to spend more time or pay more attention or make more investments? When you want to drive revenue growth, where do you look first? In this short episode of the Customer Experience Podcast in the CX series on bdb growth, I'll give you two pieces of evidence that point to the right answer, and it's probably not what first came to mind. My...

...name is Ethan Butte. I am your host. I'm also chief evangelist at bombomb and Co author of a book called Rehumanize Your Business. My coauthor is a longtime team member, longtime friend, chief marketing officer at Bombomb, Steve Passonnel and he and I are working on 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 great to talk with them again. In our conversation he brought up a recent piece of research by Forbes insights along with sales force. The piece they published was called the experience equation. How happy employees and customers accelerate growth. It was based on interviews with hundreds of executives from companies with at least twenty million dollars in 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 great X. Second, they found that great...

...customer experience, or great x, drives revenue growth and third, they found that great cx reinforces but doesn't drive great X. that's to say, having a great customer experience is a positive reinforcement for your employees, but it doesn't drive better employee experience. So what does that mean? That means if you want to drive revenue growth, you need 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 we so often look at all the different conversion points, we look at the customer life cycle, we look at the customer experience and that's all good, but what 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 chief growth of angelist at sales force and a team member of Matts. In the study she's quoted as saying the fastest way...

...to get customers to love your brand is to get employees to love their jobs. That's right. If we want to drive revenue growth, we need to look to our employees and the employee experience. And as soon as we had this conversation and I found the study from 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 and this book that I'm about to share with you. When I heard those results of this very recent survey, it reminded me of a book that's more than twenty years old. It's written by three gentlemen from Harvard Business School, James L Hasket, W EARL SASSER JR and Leonard a Schlessinger, the service profit chain, how leading companies link profit and growth to loyalty, satisfaction and value. You. They looked at the two main outcomes that pretty much every business is looking for, driving revenue growth and driving profitability, and what they were able to do is link back in a...

...chain to internal service quality, which is their language for employee experience, recruiting, hiring, on boarding, equipping, engaging, developing, investing in the feelings, the attitudes and the CO workers of every single one of our employees. Spending more time focused on internal service quality, paying more attention to internal service quality, making more investments in internal service quality and employee experience is how we drive revenue growth. So here's how they broke it out. And again, these are quantified, proven links in a chain of events. Increasing internal service quality drives higher employee satisfaction. Higher Employee Satisfaction drives higher employee retention and higher employee productivity. Okay, so we have increased employee satisfaction, which drives retention and productivity. Together those drive what 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 customer loyalty, which drives revenue growth and profitability. It's a fantastic read. I'll link that up at Bombombcom podcast as well. In addition, there's a heavyweight article at hbr Dot Org that kind of summarizes the essence of it and illustrates the model of the service profit chain. Again, you'll find all that at Bombombcom podcast. In the key takeaway here is, yes, we do need to focus on the customer experience. We do need to focus on all of the stages across a customer life cycle, from Lee Generation and lead conversion through customer retention and customer expansion, Loyalty,...

...advocacy, all of that. But underneath it all, foundational to it all is investing time and resources in our team members, in the employee experience, into internal service quality. Don't overlook it. Make it a bigger part of the conversation. It is a necessary precursor to an excellent customer experience. Again, my name is Ethan, but you can reach me on Linkedin. Last name is spelled beute. You can email 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 adding video to the messages you're sending every day. It's easy to do with just a little guidance, so pick up the official book rehumanize Your Business. How personal videos accelerate sales and improve customer experience.

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

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