There is no relationship between employee satisfaction and customer satisfaction
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Transcript of There is no relationship between employee satisfaction and customer satisfaction
![Page 1: There is no relationship between employee satisfaction and customer satisfaction](https://reader035.fdocuments.in/reader035/viewer/2022070521/58f030171a28abf7098b4621/html5/thumbnails/1.jpg)
Do Happy Employees = Happy Customers?
NO!
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http://customerstrategy.net/
In short:
The relationship between employee and consumer satisfaction for large American companies is essentially zero, contrary to what most people believe
30 March 2017
Note: This presentation is designed to accompany the blog post about the research at http://customerstrategy.net/customer-employee-satisfaction/
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http://customerstrategy.net/
Conventional wisdom
30 March 2017
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http://customerstrategy.net/
Existing research
• Most articles only cover single companies• The message tends to be something like “Google employees and customers are
both highly satisfied, therefore one drives the other for all companies”• James A Harrington showed employee satisfaction was not a major
factor in customer satisfaction in an article in the American Quality Digest covering 100 companies in the media industry
• A Northwestern University study found a weak relationship between the two for 100 companies in the media industry
Article references are in our blog post30 March 2017
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http://customerstrategy.net/
WYSIATI
• Nobel-winner Daniel Kahneman talks about ‘What You See Is All There Is’. He says our brains are lazy and want to jump to any available immediate conclusion without much thought
IntuitionLimited data
(for example, only employee and customer satisfaction)
Conclusion based on the assumption that the limited data is all
that matters
• If we had to brainstorm a list of things that drive customer satisfaction, employee satisfaction would be on the list, but nowhere near the top for most companies
30 March 2017
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http://customerstrategy.net/
Challenges
• There is no obvious source of public data on employee satisfaction• Companies run their own surveys and the results are confidential
30 March 2017
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http://customerstrategy.net/
Solution: match these two
30 March 2017
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http://customerstrategy.net/
Glassdoor overall ratings by employees explain 0.9% of customer satisfaction
30 March 2017
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http://customerstrategy.net/
Employee satisfaction explains 3.3% of customer satisfaction in high-touch
30 March 2017
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http://customerstrategy.net/
Employee satisfaction explains 1.1% of customer satisfaction in low-touch
30 March 2017
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http://customerstrategy.net/30 March 2017
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http://customerstrategy.net/
Not surprising
• This is a study of large companies. In many cases, no employees of a company have any interaction whatsoever with customers. Products or services are provided by resellers or franchisees. Support may be outsourced
• There are companies such as Amazon (High ACSI, average Glassdoor) where it is rare to interact with a human
30 March 2017
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http://customerstrategy.net/
Top 10% for both employees and customers
Used Ford Glassdoor number for Lincoln and Toyota number for Lexus 30 March 2017
Company Category ACSI Glassdoor TouchChick-fil-A Limited-Service Restaurants 87 3.9 HLincoln (Ford) Automobiles and Light Vehicles 87 3.9 LTrader Joe's Supermarkets 86 3.9 HToyota Automobiles and Light Vehicles 85 3.9 LGoogle Internet Search Engines and Information 84 4.4 LClorox Personal Care and Cleaning Products 84 4.1 LApple Personal Computers 84 4 LLexus (Toyota) Automobiles and Light Vehicles 84 3.9 LMars Food Manufacturing 84 3.9 LSubaru Automobiles and Light Vehicles 84 3.9 LH-E-B Supermarkets 83 4.1 HProcter & Gamble Personal Care and Cleaning Products 83 4 LWegmans Supermarkets 83 4 HCostco Specialty Retail Stores 83 3.9 H
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http://customerstrategy.net/
Bottom 10% for both employees and customers
Only one Glassdoor number available for the two Mediacom
and Windstream businesses30 March 2017
Company Category ACSI Glassdoor TouchMediacom Subscription Television Service 54 2.7 LMediacom Internet Service Providers 57 2.7 LWindstream Internet Service Providers 59 2.8 LWindstream Fixed-Line Telephone Service 65 2.8 LG6 Hospitality (Motel 6) Hotels 65 2.5 HFrontier Airlines 66 2.5 HDISH Network Subscription Television Service 67 2.6 L
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http://customerstrategy.net/
Counter-intuitive: top 10% for customers, bottom 10% for employees
Only one Glassdoor number available for both Samsung businesses30 March 2017
Company Category ACSI Glassdoor TouchSamsung Household Appliances 84 2.9 LKmart (Sears) Health and Personal Care Stores 84 2.6 HSafeway (Albertsons) Health and Personal Care Stores 83 2.9 HSamsung Personal Computers 83 2.9 LDillard's Department and Discount Stores 83 2.6 HKraft Heinz Food Manufacturing 83 2.5 LNewegg Internet Retail 83 2.5 L
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http://customerstrategy.net/
Counter-intuitive: bottom 10% for customers, top 10% for employees
Only one Glassdoor number available for both Samsung businesses30 March 2017
Company Category ACSI Glassdoor TouchLinkedIn Internet Social Media 65 4.4 LTwitter Internet Social Media 65 4 LTumblr (Yahoo!) Internet Social Media 67 3.9 L
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http://customerstrategy.net/
Notes
• Download the Excel file from the customerstrategy.net resources page to examine detail and do your own analysis
• All ACSI data is for 2016. Most Glassdoor ratings are from mid-2016, with a small number from January 2017
• Disagreement and debate welcome. Add comments to blog post at http://customerstrategy.net/customer-employee-satisfaction
• Contact: Maurice FitzGerald [email protected]
30 March 2017
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http://customerstrategy.net/30 March 2017
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http://customerstrategy.net/
Thank you
30 March 2017
Please read our blog at http://customerstrategy.net/blog/ and sign up for our newsletter at http://customerstrategy.net/newsletter/