According to Roy Morgan Research, this year Australians are spending more on movies, dining out and other experiences than on groceries, continuing an upward trend for ‘want’ versus ‘need’ spending. Welcome to the experience economy, where the quality of the customer experience plays a pivotal role in whether a business succeeds or fails.
Every touchpoint in this customer experience shapes customer sentiment. With employees as a crucial touchpoint, having a workforce of brand ambassadors that delivers a consistently differentiated customer experience has never been more vital. To build that workforce, marketing and HR need to work together in equal partnership.
In the experience economy, happy staff make for happy customers, and happy customers lead to higher brand loyalty, more sales and bigger profits. Share earnings for companies with highly-engaged employees are nearly 150% higher than for other companies.
Clearly, the employee and customer experiences are inextricably entwined, yet the related programs are usually planned and run separately. However, I’m starting to notice a willingness for closer strategic alignment.
This is a good start, but strategies alone don’t change behaviours. Whether it’s designed to improve the customer experience, the employee experience or both, a strategy stands or falls on its execution. And execution needs the relentless clarity, drive and focus that only leaders can provide.
DOING THINGS DIFFERENTLY
Most leaders don’t understand how putting as much effort into the employee as the customer experience can drive growth, despite some high-profile examples. Richard Branson built the Virgin brand around providing a superior experience for customers and staff. Tony Hsieh, who founded billion-dollar online shoe retailer Zappos, made employee happiness the cornerstone of his brand promise to deliver a ‘WOW’ customer experience.
More recently, the founders of successful UK start-ups O2 and Innocent designed the employee experience and customer experience together, and in Australia, Transurban, HCF and NRMA are seeing great results with similar leader-led approaches. I’d like more organisations to do the same, especially those in service-based industries such as telecommunications, banking and retail sales.