Are you aware that customer engagement and customer satisfaction are two distinctly different metrics? A recent Gallup poll sheds light on the differences and how each can be measured most effectively.
Gallup confirms that engagement is a much higher bar to reach than satisfaction. One doesn’t necessarily follow from the other, and both are strategic choices for companies looking to grow business revenues.
Half of all customers in Gallup’s customer database say they are satisfied with a given brand, but only 38 percent say they are engaged with it. Gallup gives examples for each metric. For instance, a retail business may earn customer satisfaction by offering great sales, discounts and deals. But it will engage customers if its salespeople go out of their way to be helpful.
Four possible combinations of the two metrics were identified by Gallup: 1) low satisfaction/low engagement; 2) high satisfaction/low engagement; 3) low satisfaction/high engagement; and 4) high satisfaction/high engagement. No. 4 is obviously the ideal situation, and No. 1 is a sure miss.
Ranking in No. 2 or No. 3 can be valuable—but only if following from a company’s leadership and strategic aim to be there.
Gallup defines No. 2 customer relationships as ones of “convenience,” meaning that either price or product features are appealing but customers have no strong emotional connection with the brand. Here, customers want what the company offers—not the company itself. This is a perilous position for brands because customers will simply leave if another brand offers more bang for the buck.
Companies that rank in the No. 3 category are known for their emotional connections to customers but hardly rational aspects of their products or services. Think highly successful, upscale hotel chains and theme parks.
How can companies drive employees to performances that help them reach the ideal No. 4 category of both high satisfaction and high engagement? Start by measuring the right metrics; identify the specific actions that keep customers coming back and purchasing more. Spreading a positive message should be the primary focus of training and management efforts.
Senior leaders are the only ones in a position to instill organizational norms that engender greater customer satisfaction and engagement.
Here’re Gallup’s four key strategies for advancing within each category:
- Clarify the purpose and mission: Only a well-defined mission can drive purpose effectively.
- Reverse-engineer the culture: Organizational norms must serve the mission.
- Invest in what matters: Highly successful organizations invest time, energy and money into advancing their missions.
- Measure the right things: If you want engagement, measure customer “moments” as locally as possible.
Consistency and persistence across these four areas determine a company’s value proposition to the marketplace, says Gallup. Senior leaders must be intentional in connecting mission—whether customer satisfaction, engagement or both—and strategy to turn organizational norms into strengths.
Steve Brubaker began his career at InfoCision in 1985. In his current role as Chief of Staff and as a member of the Executive Team, he is responsible for HR, internal and external communications, and manages the company’s legal and compliance departments. Brubaker is a member of a number of professional organizations, including the DMA, SOCAP, and PACE. He also donates his time to serve on several university boards, including the Executive Advisory Board for The Taylor Institute for Direct Marketing at The University of Akron and The University of Akron Foundation Board. He is a frequent speaker for national events and has also been honored with a number of awards and recognitions for his contributions to the call center industry.