The Ripple Effect: How Employee Treatment Impacts Customer Loyalty & Referrals

The Ripple Effect: How Employee Treatment Impacts Customer Loyalty & Referrals

Doing CX Right podcast show on Spotify with host Stacy Sherman
Doing Customer Experience (CX) Right Podcast - Hosted by Stacy Sherman
Doing CX Right podcast show on iHeart Radio with host Stacy Sherman

How does a positive or negative employee experience impact customer referrals and brand reputation?

Have you considered the potential revenue loss and damage to your company’s image when disgruntled former employees share their negative experiences?

The answers to these important questions are essential for businesses aiming to stand out in today’s competitive marketplace. I’ve explored these dimensions and curated actionable strategies to foster customer loyalty based on insights from my years of experience and the invaluable perspective of featured guest Dan Goodman, a pioneering employee advocate.

Employee and Customer Experience Topics Discussed:

  • The connection between employee treatment and customer referrals and why mistreating employees can cost you customers.
  • The importance of transparency, honesty, and mutual respect in the employee-employer relationship.
  • Strategies for negotiating better severance packages and navigating workplace disputes.
  • The right way to handle employee terminations with empathy, dignity, and open communication to avoid bad press.
  • Case study revealing the impact of leadership and corporate culture on customer experiences.

10 Employee Advocacy Lessons for Customer Loyalty and Referrals:

1. Understand Motives: Recognize that severance offers are about securing liability releases, not acts of kindness.
2. Foster Transparency: Advocate for open communication and clear policies within the employee-employer relationship.
3. Respect Rights: Empower employees to speak their truth and exercise their rights if faced with unfair treatment.
4. Level the Playing Field: Help employees build leverage based on legality, empathy, and public perception.
5. Embrace Empathy: Treat employees with dignity and respect, especially during termination processes.
6. Cultivate Support: Provide ongoing coaching, training, and encouragement to employees, rather than relying on PIPs.
7. Lead with Care: Train leaders in empathy and effective communication for termination processes.
8. Validate Emotions: Recognize the grieving process and emotional impact of termination on employees.
9. Question Authority: Encourage employees to question things and not blindly trust leaders.
10. Build Trust: Cultivate a corporate culture rooted in mutual respect and kindergarten rules.

Whether you are a business leader, a human resources professional, or an employee advocate, you won’t want to miss the employee advocacy and customer experience wisdom shared, as it may be your game-changer for building a loyal customer base and a positive brand reputation.

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About Dan Goodman:  

Dan Goodman has advocated for employees for nearly three decades. Starting by helping friends with pay disputes, he founded TruCommish, a commission audit service for salespeople, and later Dan Goodman Employment Advisory to support all employees. Dan empowers employees to stand against mistreatment and exposes wrongful employer practices.

He assists with employment agreements, restrictive clauses, severance offers, PIPs, stock/equity grants, compensation plans, pay disputes, and general advice. With a BBA and MBA from Babson College, Dan’s mission is to provide truth and transparency in employer/employee relations.

Connect with Dan on LinkedIn

About Stacy Sherman: Founder of Doing CX Right®‬

Customer experience and marketing global keynote speaker, journalist, co-author of two books, advisor, and host of the award-winning DoingCXRight podcast. Known for her Heart & Science™ framework that helps you gain profitable clients and brand loyalty–fueled by an empowered workforce. Stacy’s been walking the talk for 25 years as a strategist and practitioner at companies of all sizes and industries, i.e., Liveops, Verizon, Schindler Elevator Corp, Wilton Brands, and AT&T. She’s also a board advisor at multiple universities, featured in Forbes and other top-rated publications.

Her Why: To cultivate loyal relationships and meaningful experiences that enrich people’s lives. Contact Stacy for DOING Customer Experience (CX) and Service Right, not just TALKING about it. Continue reading bio >here.

Learn More About Increasing Customer Loyalty.

Watch Stacy Sherman’s Linkedin Learning Course‬.

Customer service expert Stacy Sherman shows you how to foster a strong frontline worker experience so your agents and other staff can deliver value and engender customer loyalty.

Learn how to identify challenges that impact frontline worker effectiveness.

Explore hiring strategies for contact center and other frontline roles, as well as how to build positive relationships with your frontline workers from day one.

Find out how to elevate frontline worker performance through intentional training and development and prepare frontline workers for future leadership.

This course equips you with a blueprint to connect frontline worker experience to customer experience, so that you’re focused on doing right by your teams and your customers.

Topics Discussed: Doing CX Right podcast

customer experience, Watermark Consulting, author, speaker, CX advisory firm, radio DJ, artificial intelligence, choreographed experience, impressing customers, lasting impression, emotional impact, book and research, customer experience ROI, operating expenses, Customer Experience ROI Study, financial lift, wallet share, customer acquisition, Net Promoter Score, customer loyalty, customer compliments, brand obsession, emotional resonance, voice of the customer, customer surveys, customer behavior, leadership development