How Happy Employees and Customers Accelerate Growth.

Research has long established the link between customer

experience and revenue.
But research shows the situation is more nuanced—and more

interesting—than that.

Customer experience (CX) is in fact locked with employee

experience (EX) in an intricate relationship in which one

depends on the other to gain maximum results.

In addition,the right strategic efforts have critical implications that can
result in higher revenue growth.

The conclusion that happy employees and happy customers go together isn’t only comforting.

It also points toward a powerful way for companies to grow faster.
New research indicates that good EX leads to good CX and, in turn, to stronger revenue expansion. In fact, EX and CX reinforce one another through positive feedback.
With their high EX and high CX, the companies from our dataset that landed in the top right quadrant (see chart) are growing almost twice as fast as are companies with low EX and low CX: For a $1 billion company, such a growth rate would translate to $40 million in revenue per year.

Among these top performers are such iconic brands as Amazon, Apple, Netflix, Hilton and Southwest Airlines.
NOTES AND DATA SOURCES FOR CHARTS ON FOLLOWING PAGE

Each dot represents a company with a customer satisfaction and an employee satisfaction score.

CX scores come from the American Customer Satisfaction Index (http://theacsi. org), plotted as CX on the vertical axis.
EX scores are the company’s overall employee satisfaction score from Glassdoor (http://Glassdoor.com), plotted as EX on the horizontal axis.
CAGR is the median of the three-year CAGR figures of individual companies in the quadrant, drawn from financial statements in the case of public companies and drawn from analyst and Forbes estimates in the case of private companies.
The chart shows EX and CX ratings as of May 2020.