Posts tagged ‘customer loyalty’

June 3, 2011

I’m Happy, You’re Happy. Yet More Evidence that Satisfied Employees Make Satisfied, and Loyal, Customers

We have known for a long time now that there is a link between how happy an organisation’s workers are and how happy its customers are.  New findings published in the May 2011 edition of the Journal of Service Research demonstrate yet again that, when studied empirically, the links between employee satisfaction and customer satisfaction are undeniable (1).

This study led by Heiner Evanschitzky from AstonUniversity reveals further that when employees are more satisfied in their roles, the link between customer satisfaction and intention to buy from the company again in the future is stronger.  Satisfied employees mean that satisfied customers report more likelihood to purchase in the future.

In this study, Evanschitzky and his co-researchers examined satisfaction levels at 50 franchised retail outlets and so the employees in the study directly interacted with the customers.  It probably seems intuitively correct that as a customer, if you are served by someone who is happy in their job, then you may come away feeling more positive about the organisation. A process of social contagion could explain at least some of the customers’ satisfaction: they might have been picking up and adopting some of the emotions of the employees during their interactions with them.  In addition, engaged and satisfied employees may care more about providing a good service, and work harder to do so, leading directly to a better customer experience.

However, the effect of employee satisfaction seems to go deeper than this,

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February 12, 2011

Emotion at the Heart of the Customer Experience

The Emotional Decision Maker

The way we feel underlies almost all our decisions and actions, even ones that we think are rational and logical.  Social psychological research continues to reveal the emotional and seemingly irrational underpinnings of our choices, from the smallest purchase to the most major life change.  It is inevitable that the same emotional responses will lie at the heart of how we choose to interact with organisations.

The emotional basis for decision making allows us to understand why an organisation’s front-line service providers are key to influencing our decisions to become and remain customers of any organisation.  Our interaction with them creates an emotional response and sets a pattern for our interaction with the organisation.  It is the way that the people of an organisation make us feel that determines our most strongly held opinions about it.

Person to Person

Of course there are other factors in forming our opinions as customers – the organisation’s advertising and materials, what we hear about them in the media, our experience of their product and other people’s views to name a few.  But at its heart, every contact an individual has with an organisation, in whatever form, is a personal interaction.

No matter in what medium of communication ia, what we infer about the meaning behind the communication and the emotional response it creates in us, is largely the same as would occur in a conversation in person between two people.

As social animals we are continually interpreting and responding to the way that other people interact with us, even if that is only through some text on a website or a set of instructions.

We are able to detect nuances of tone and subtle inferences in any type of communication and our deepest emotional reaction shapes our behaviour without conscious awareness.  In fact, we can impute meaning to a complete lack of communication – for example, think what meanings we draw from an organisation’s repeated failure to answer the phone when we have a problem to discuss.

Although we are interacting with an organisation, to our social brain that only makes sense as a group of individuals: along with the product itself,  our interactions with the person we are speaking to is the foundation of almost all that we will come to feel about an organisation.

Above and Beyond Simple Emotional Response to Experience

Psychological research consistently finds that our emotions about someone or something create the conditions for their own existence, through cognitive processes called attentional and confirmation biases. 

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