Engaged Employees Lead to Higher Customer Spending

New Research Summary Examines Dramatic Impact on Growth


October 04, 2012, NAPERVILLE, IL  – Human resources leaders have a unique opportunity to help their companies achieve revenue increases by as much as nearly 23% by investing wisely in communication, recognition, and incentive programs to improve employee engagement, in which current levels are at an all-time low, according to a new research summary released by the business thought leadership organization, The Forum: Business Results Through People.

The report, “Employee Behavior Increases Customer Spending” is the latest in a new series of targeted and concise research packages designed for human resources leaders. Its authors, Dr. Frank Mulhern of Northwestern University, together with researchers Don Schultz, Heidi Schultz, and Robert Passikoff, studied employee behavior and the link to increased customer spending at an international hotel chain. “Customer perceptions of the brand and the employee behaviors that influenced them had a direct and positive impact on how much money customers spend per visit over time,” the report concludes.

Researchers noted that in the case of one key driver critical to a positive brand experience, the extent to which employees “tried to satisfy” the needs of the customer, a 10% increase in effort translated into a 22.7% increase in customer spending. In fact, the link between employee satisfaction and customer satisfaction and financial performance was found even when the employees didn’t have direct customer contact, meaning HR executives need to improve employee engagement levels in all areas of the company, or risk squandering additional growth opportunities.  

Click here to read the entire research summary.

About The Forum
The Forum: Business Results Through People (www.BusinessResultsThroughPeople.org), affiliated with Northwestern University, is an organization for thought leadership advocating that the most effective way business leaders create and sustain organizational values is through partnership with people.

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