The Connection Between Employee Experience, Customer Experience, and Business Performance
- Maria Stavrinides
- Mar 24
- 3 min read
I recently read a quote that truly resonated:
“If you look after your staff, they will look after your customers. It's that simple.”
— Richard Branson
At first glance, the idea that “happy employees lead to happy customers” feels intuitive. But what does the research say about the impact of employee experience (EX) on customer experience (CX) and overall business performance?
Employee Experience as a Catalyst for Customer-Centric Culture
We know that at the heart of every successful organisation is its ability to deliver exceptional customer experiences. Our own research analysis*, drawn from years of collaboration with clients and insights from thousands of employees, consistently highlights a key driver of motivation and performance: the alignment of employees’ work with customer needs.
This alignment is particularly pronounced in purpose-driven organisations, where people feel a deeper connection to those they serve.
When employees see how their contributions directly impact customers, a genuine sense of purpose emerges, fuelling engagement and productivity. Over time, this fosters a customer-centric culture that becomes a core organisational strength.
So, how does the employee experience amplify this connection, and what effect does it have on business performance?
The Ripple effect of Employee Experience on Customer Experience
Research** notes that prioritising the employee journey is essential to delivering consistent, high-impact customer experiences. Organisations that invest in enabling employees—by removing operational friction and empowering them with tools and support—are more likely to succeed in creating loyal, satisfied customers.
A positive employee experience enhances customer interactions in several key ways:
Authentic Service: Engaged employees deliver more empathetic, thoughtful service, which resonates with customers.
Consistency: A supportive work environment ensures employees are motivated to maintain high service standards.
Problem-Solving: Empowered employees are more innovative, finding creative solutions to meet customer needs.
This is why progressive organisations align EX with CX goals, creating cross-functional collaboration to support employees as “internal customers” and thus ensuring a smoother, more consistent customer journey
The Business Case: Performance Outcomes
The link between EX, CX, and business outcomes is well-documented ***.
Companies with highly engaged employees outperform their peers across several key metrics:
Revenue Growth: Engaged teams drive higher productivity and innovation, leading to increased revenue. Gallup’s research found that companies with highly engaged employees are 23% more profitable and 18% more productive than those with low engagement. Engaged employees are more innovative and customer-focused, which drives better financial outcomes.
Customer Loyalty: Positive CX directly boosts customer retention and advocacy, which are critical for growth. Research by the Engage for Success movement found that organisations with higher employee engagement see improvements in customer retention and loyalty, which are critical for long-term growth
Operational Efficiency: Employees who feel valued and supported are more efficient, reducing costs associated with turnover and disengagement. Engaged teams experience fewer quality defects, less absenteeism, and lower turnover rates, all of which improve operational efficiency. Reduced turnover alone leads to significant cost savings, especially in industries where recruitment and onboarding are resource-intensive.
Coming back to the original quote that sparked my thinking, “If you look after your staff, they will look after your customers. It's that simple” underscores a simple truth: when employees thrive, customers benefit. By fostering a positive employee experience, organisations create the conditions for exceptional service, deeper customer loyalty, and stronger business outcomes.
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