Improving Customer Service Through Employee Recognition

Think about a time when a friend or family member said “thank you” for helping them. It may have made you feel appreciated and motivated to do more for them – this same concept applies equally in the workplace.

When employees feel appreciated, they become motivated to do more and better quality work. For customer-facing employees, that means providing an experience that clients appreciate and remember. Studies show that companies with at least 50% employee engagement retain more than 80% of their customers. That is the impact of employee recognition.

“There’s no CEO on the planet who’s responsible for the customer. They’re just not. They’re responsible for the people who are responsible for the people who are responsible for the customer.” -Simon Sinek

Understanding employee recognition and why it matters to businesses

Employee recognition describes any formal or informal acknowledgment of an employee’s contributions to a team or organization’s success. It can come from a peer, direct report, manager, or leader.    

Organizations approach employee recognition in different ways. Some do it in more informal ways: a shout-out during a meeting, on social media, or through the company’s intranet; thank-you notes, or an employee lunch. Others are using robust employee recognition platforms like Kudos to streamline the process and make sure everyone benefits.  

Employee recognition matters because it directly impacts critical aspects of the organization. Several studies have shown that employee recognition is a powerful driver of retention, productivity, and motivation. For example, let’s consider the following facts:

• Employees are 2x as likely to say they’ll quit when there’s a lack of recognition, and “the more talented the employee is, the faster they leave.” – Gallup
• Companies that recognize their employees enjoy a 14% increase in employee engagement, productivity, and performance than companies that do not. – Bersin by Deloitte
• Employees feel motivated and happy when they are recognized. Research has shown that happy employees are 13% more productive. – Oxford University’s Saïd Business School

When structured efficiently, recognition can reinforce a company’s organizational values, which in turn helps to keep employees aligned with their objectives and their coworkers. 

Creating an ideal customer experience

“Always treat your employees exactly as you want them to treat your best customers.” – Stephen Covey

Customer service teams play a crucial role in driving profitability in many industries, such as retail, hospitality, food service, and technology. According to PwC’s Future of Customer Experience Survey, 73% of customers agree that customer experience is central to their purchasing decisions. Among U.S. customers, 65% find a positive customer experience more influential than great advertising.    

Therefore, you need employees – especially those in customer-facing roles – to prioritize customer satisfaction by offering “speed, convenience, knowledgeable help, and friendly service.” These employees assist customers by anticipating concerns, preparing solutions, responding quickly, and going above and beyond to ensure that customers are satisfied.

How employee recognition impacts customer service

Consistently and effectively Recognizing your customer service teams for their contributions can yield incredible results:

1. Customer rapport: Data from Bain & Company shows that companies that excel at the customer experience increase their revenues by 4% to 8% above their market. Recognizing employees helps them maintain positive relationships and do what is right for the customer. This can improve revenue because customers will be willing to pay more and are likely to refer other customers.  

2. Employee satisfaction: According to a Harvard Business Review article, “customer and employee satisfaction should be seen as two sides of the same coin.” When employees are happy and satisfied with their jobs, they are more capable of ensuring customer satisfaction.  

3. Employee and knowledge retention: The risk with employee turnover in customer service teams is the loss of product knowledge – which helps employees respond to customers’ questions or close sales. According to Panopto’s research, 42% of an employee’s knowledge in a given role is unique to that person. It comes from self-learning and discovering new efficient and effective approaches on the job. When that employee leaves, the customer experience suffers because the new or existing employees may not be as efficient as the employee with the unique knowledge. So, recognizing employees encourages employees to stay longer on the job and keep their expertise within your organization. Recognition is proven to reduce turnover by over 30%, according to Bersin & Associates. ‍‍‍

‍Simple ways to recognize customer service employees

• Share positive feedback in real-time.
• Recognize them regularly, not just during annual reviews.
• Encourage peer-to-peer recognition.
• Give casual monetary rewards like gift cards.

‍Final Thoughts

Building a culture of recognition comes down to the common-sense practice of not taking your people for granted. To keep your customers happy, make your employees happy by recognizing them with Kudos’ help.