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Bridging the Distinction Gap: How the Employee Experience Shapes Customer Loyalty

Bridging the Distinction Gap: How the Employee Experience Shapes Customer Loyalty

We are in an era where customer experience (CX) is the battleground in every industry. There’s no business I’ve encountered in my years of working with organizations around the world that had zero concern for repeat and referral business. We all desire customers who come back for more and who tell their colleagues and friends about us. Yet, few organizations create the distinction necessary between themselves and the competition to avoid the pitfalls of the “sea of sameness” where most businesses find themselves adrift.

I’ve learned that a crucial piece often remains overlooked – the direct correlation between the experience of employees (EX) and that of customers.

This oversight is not just a minor gap; it’s a chasm that can significantly affect an organization’s bottom line and brand reputation.

A study by the Harvard Business Review highlighted that companies excelling in customer experience have 1.5 times more engaged employees than less customer-focused companies.

Yet, despite such compelling evidence, the responsibility for CX and EX often lies in siloed departments, with little collaboration or understanding between the two. Particularly concerning is the role of the Chief Customer Officer, who, in many organizations, lacks authority over or sometimes even a direct connection to the very employees delivering the experience to customers.

The Symbiotic Relationship of CX and EX

To grasp the essence of this connection, consider the upcoming Olympics and a relay race. Just as the success of the gold medal team depends not only on the individual speed of the runners but also on their ability to seamlessly pass the baton, your journey of delivering exceptional customer service is a team effort that hinges on the internal support and motivation of the workforce.

Drawing from the insights in my recent book, The Ultimate Customer Experience®, one critical aspect of enhancing both CX and EX is to “Connect With Emotion.” Employees who feel valued, heard, and engaged are more likely to extend those positive emotions toward customers, creating a ripple effect that enhances every interaction.

Gallup’s State of the Global Workplace report supports this, showing that businesses with highly engaged teams show a 21% increase in profitability, directly linking employee well-being with superior customer service.

From Insight to Action

So, how can your business put this understanding into practice? The first step is for leaders to recognize and act upon the interdependence of CX and EX. Creating a culture that prioritizes employee engagement and satisfaction as the foundation for customer service excellence is no longer optional; it’s imperative.

Leaders should strive to create an environment where feedback loops exist not just externally with customers but internally with employees. This approach ensures that those on the front lines who understand customer needs most intimately are heard, valued, and empowered to make a difference.

Real-world Success Stories

Consider the case of a well-known retail giant that revamped its approach to employee engagement. By implementing regular feedback mechanisms, recognition programs, and clear paths for career advancement, they saw a dramatic uptick in employee satisfaction. This internal transformation led to more personalized and proactive customer service, reflected in their rising customer satisfaction scores and, subsequently, their bottom line.

Another example is a leading tech company that integrated its customer support teams with product development groups. This cross-functional integration allowed for direct communication and rapid iteration based on customer feedback, delivered by engaged employees who felt directly involved in the company’s success. The result was not only innovative product enhancements but also customers who felt heard and valued, fostering loyalty and advocacy.

Reflection and Call to Action

It’s time for business leaders and entrepreneurs to critically assess their organizational structures and cultures.

  • Are you fostering an environment where employees feel as valued as your customers?
  • Are the insights and feedback from your frontline staff shaping the way you innovate in customer service?

When I’m consulting or speaking with leading organizations, I ask them to consider the following three specific action steps – and challenge you with the same right now:

  1. Initiate regular, open forums where employees can share their insights and feedback directly with CX leaders.
  2. Develop recognition and reward systems that celebrate not just sales or customer feedback scores but also employee contributions to the customer experience.
  3. Invest in training and development programs that empower employees with the skills and knowledge to excel in their roles and, by extension, enhance customer satisfaction.

The journey to aligning your CX and EX starts with a single step: recognizing the intrinsic link between the two.

By fostering an environment where employees are engaged and empowered, you pave the way for not just satisfied customers but loyal advocates for your business.

As we navigate the complexities of today’s business landscape, let us not forget the simple truth that lies at the core of every successful organization: a happy employee leads to a happy customer.

By bridging the gap between CX and EX, we not only enhance our competitive edge but also build more resilient, dynamic, and human-centric businesses.

In the quest to elevate your customer experience, remember that the key might just lie within the heart of your organization – your employees. Together, we can redefine the standards of customer service excellence, starting from the inside out. I invite you to join me in this crucial conversation and take the first step towards a more integrated, emotionally connected approach to customer experience.

For more insights and strategies on how to transform your customer and employee experiences, delve into my latest book, The Ultimate Customer Experience ®.

AND – let’s start a conversation about how we can together discover steps to elevate your business in ways you never thought possible. Let’s embark on this journey to create distinction—one relationship at a time.

Keeping Long-Term Customers Engaged and Your Business Relevant

Keeping Long-Term Customers Engaged and Your Business Relevant

When I was growing up in rural Indiana, my Mom often said, “Familiarity breeds contempt.”

But with all due respect for my Mom – and parents everywhere who used the phrase – it’s just not true. The more I know you, and about you, it does not automatically transition into scorn and disrespect. Familiarity does NOT breed contempt.

Rather, familiarity breeds complacency.

This inspires a critical question: how does any business – or any professional – maintain relevance with long-term customers?

As consumer preferences evolve and market conditions shift, we must continuously adapt our strategies to keep these relationships vibrant and engaging. We must constantly seek ways to transform ordinary transactions into memorable experiences that cement customer loyalty.

Understanding the core needs and desires of your customer base is foundational to maintaining relevance. This goes beyond surface-level interactions. It means working to understand the emotional and psychological drivers that influence purchasing decisions. It’s about recognizing that at the heart of every transaction (B2C AND B2B!) is a human being seeking not just a product or service but an experience that resonates on a personal level.

This understanding enables us to anticipate needs and innovate solutions that solve immediate problems and enhance the customer’s overall quality of life.

To deliver an Ultimate Customer Experience®, personalization emerges as one of your most potent tools.

Tailoring experiences to individual preferences demonstrates a level of care and attention that can significantly elevate customer satisfaction. By leveraging data analytics and customer feedback, you can create highly personalized communication and offerings that make customers feel valued and understood. This approach strengthens the customer-business bond and fosters a sense of exclusivity and belonging, making customers more likely to remain engaged over time.

However, personalization alone is not enough.

Consistent engagement through meaningful communication is crucial in maintaining a pulse on customer needs and ensuring that your business remains top of mind. This could range from personalized emails and social media interactions to customer appreciation events or exclusive previews of new products or services.

The goal is to create a dialogue, not a monologue, where feedback is not only encouraged but actively sought and acted upon. This ongoing conversation fosters a dynamic relationship where the customer feels heard and valued, significantly boosting loyalty and retention.

Innovation plays a critical role in maintaining relevance with long-standing customers. Remember, “Creativity” is the second of the Four Cornerstones of Distinction.

In a world where change is the only constant, businesses that stand still risk obsolescence. By continuously enhancing your offerings and the ways in which you engage with customers, you can keep the relationship fresh and exciting. This doesn’t always mean revolutionary changes; sometimes, even minor tweaks or enhancements can reignite interest and demonstrate your commitment to improvement.

Do you know what your customer wants?

Finally, building a community around your brand can provide immense value in sustaining long-term relationships. When customers feel part of something larger, their loyalty extends beyond transactions to become part of their identity.

Your community can be nurtured through exclusive memberships, forums, events, and shared experiences that bring customers together, not just with your brand but with each other. In such environments, customers are not just passive recipients but active participants in your narrative, contributing to its evolution and spreading your message.

Let’s face it: maintaining relevance with long-term customers is not easy. It’s a multifaceted endeavor that demands a deep understanding of customer needs, a commitment to personalization and innovation, and the creation of meaningful, ongoing dialogues and communities.

By adopting these strategies, you can be assured that your relationships with long-term customers not only endure but thrive, turning loyalty into a decisive competitive advantage in today’s ever-changing marketplace.

It’s what ensures that you sustain the distinction you have created.

Leveraging AI to Deliver the Ultimate Customer Experience®

Leveraging AI to Deliver the Ultimate Customer Experience®

In the field of customer experience, the advent of Artificial Intelligence presents an unparalleled opportunity for businesses to redefine the way they interact with customers.

Your incorporation of AI into your customer experience strategies is not just about harnessing new technologies; it’s about crafting more intuitive, responsive, and personalized interactions that elevate the customer journey to new heights. Here’s an exploration of how AI can be leveraged to enhance the Ultimate Customer Experience®:

AI-Enhanced Personalization

At the heart of any exceptional customer experience lies deep personalization – the ability to not only meet but anticipate the unique needs and preferences of each customer.

As I’ve written in my previous books dating back to the late 1990s, it’s the way you personalize to create emotional connections that form the fundamental difference between “customer service” and the “customer experience.”

AI excels in analyzing vast datasets to uncover patterns and preferences, enabling your business to tailor their offerings with unprecedented precision. From customized product recommendations to personalized communication, AI can transform a standard transaction into a tailored interaction that resonates deeply with the individual customer.

Conversational Interfaces and Virtual Assistants

AI-powered conversational interfaces, such as chatbots and virtual assistants, have revolutionized customer engagement by providing instant, on-demand assistance. These AI solutions can handle a wide range of queries, from simple FAQ responses to complex transactional conversations, ensuring that customers receive the right information at the right time.

The key to leveraging these tools in creating distinction lies in their seamless integration and human-like interaction capabilities, making digital conversations feel personalized and engaging.

Predictive AI concept image

Predictive Analytics for Proactive Engagement

Predictive analytics, powered by AI, allows businesses to anticipate customer needs before they arise, offering solutions and services proactively. This forward-thinking approach to customer engagement can transform the customer experience from reactive to proactive, delighting customers by exceeding expectations and preemptively solving problems.

Whether it’s predicting a need for maintenance before a product fails or offering a discount on a much-loved product before the customer runs out, predictive engagement adds a layer of thoughtfulness and anticipation to the customer experience.

Continuous Learning and Evolution

AI systems are inherently designed to learn and improve over time, analyzing every interaction to enhance future performance. This continuous learning process ensures that the customer experience is constantly evolving, adapting to new trends, preferences, and feedback.

Businesses that harness this aspect of AI can ensure that their customer experience strategies remain at the cutting edge, always one step ahead in meeting and exceeding customer expectations.

Finally – and most importantly:

Enhancing the Human Touch with AI Insights

While AI can automate and enhance many aspects of the customer experience, the human touch remains irreplaceable.

AI’s true power lies in augmenting human interactions, not replacing them.

By providing customer service representatives with real-time insights, suggestions, and support, AI enables them to deliver more empathetic, informed, and effective service. This synergy between AI and human intuition creates a customer experience that is both highly efficient and deeply personal.

In integrating AI into the Ultimate Customer Experience®, it’s vital that you maintain a customer-centric approach, ensuring that technology serves to enhance rather than detract from the personal, emotional connections that lie at the heart of every great customer interaction.

By leveraging AI in these strategic, thoughtful ways, you can create an Ultimate Customer Experience® that creates distinction for your business in a crowded marketplace.

The pervasive challenge that threatens to undermine you and your business

The pervasive challenge that threatens to undermine you and your business

In business and leadership, the pursuit of distinction and the delivery of the Ultimate Customer Experience® are paramount. Yet, a pervasive challenge that I’ve observed in several organizations threatens to undermine these objectives: the echo chamber effect.

This phenomenon, where similar thoughts and ideas circulate and reinforce themselves within a group, can stifle innovation and lead to a narrow-minded understanding of customer needs. This issue is particularly concerning in today’s diverse marketplace, where understanding and catering to a wide array of customer preferences is crucial for standing out and driving success.

The echo chamber effect is not just a social or political phenomenon; it extends deeply into the business world.

Leaders and teams often fall into the trap of designing products, services, and experiences based on their personal preferences and biases rather than on a deep understanding of a diverse customer base. This inward-looking approach can lead to the disconnect I wrote about in my book, “What Customers REALLY Want,” between what businesses offer and what their customers crave.

For instance, web designers may create complex, cutting-edge websites aimed at showcasing their technical prowess to peers, neglecting the ease of navigation and accessibility for the average user. Similarly, product developers might focus on features they find innovative or exciting, overlooking the practical needs and preferences of their target audience.

At some point, I think most of us have been on a website or using a product and thought to ourselves, “How do I work this damned thing?”

This misalignment not only hampers the customer experience but also erodes the competitive edge businesses strive for.

The echo chamber effect also reveals itself in the people we choose to surround ourselves with. In the quest for racial, gender, and other forms of diversity, it’s crucial to remember that cognitive diversity is equally important. Bringing together individuals who think differently, challenge the status quo, and offer unique perspectives is vital for fostering innovation that creates distinction and delivers ultimate experiences that resonate with a broad customer base.

Yet, often, businesses prioritize typical diversity metrics and ignore deeper, impactful cognitive and experiential diversity.

Breaking free from the echo chamber requires deliberate and strategic efforts.

  • It begins with cultivating a culture of curiosity and openness, where questioning and challenging the norm is encouraged.
  • Leaders must actively seek out and listen to voices that differ from their own, ensuring that decision-making is informed by a multiplicity of perspectives.
  • This involves not just listening to diverse team members but also engaging directly with a wide array of customers to understand their needs, preferences, and pain points.

Leveraging data and analytics can provide objective insights into customer behavior and preferences, helping to counteract subjective biases. Regularly testing and improving on products, services, and experiences with real users from diverse backgrounds can help ensure that you are meeting the actual needs of your customers rather than what you might presume those needs to be.

The echo chamber effect poses a significant threat to the creation of the Ultimate Customer Experience® and the pursuit of distinction in business.

By recognizing this challenge and taking proactive steps to foster diversity of thought, engage with diverse customer bases, and leverage data-driven insights, leaders can steer their organizations away from the echo chamber and towards a more inclusive, innovative, and customer-centric future.

This not only enhances the customer experience but drives sustainable growth and distinction in your competitive marketplace.


If we can assist you by bringing fresh perspectives and helping you escape the echo chamber, we would love to connect! Contact Shelley at shelley@scottmckain.com.

The Antidote to Price Wars: Creating Distinction and an Ultimate Customer Experience® in a Commoditized World

The Antidote to Price Wars: Creating Distinction and an Ultimate Customer Experience® in a Commoditized World

The late, great Tom Winninger – a friend and Speakers Roundtable colleague – wrote a book over thirty years ago titled “Price Wars.” And even though Tom was a brilliant visionary, I think even he would look at the level of pressure surrounding commoditization today and be astounded.

In today’s hyper-competitive landscape, products and services are increasingly becoming indistinguishable, reduced to mere features and specifications on a spreadsheet. In an era where consumers are bombarded with endless choices and digital marketplaces are overcrowded with similar offerings, businesses of all sizes are grappling with the pervasive challenge of commoditization.

This phenomenon erodes margins and dilutes brand value, compelling companies to compete in a race to the bottom on price. Brutal price wars erode profits and leave businesses of all sizes scrambling for survival.

However, there is a potent strategy that can serve as your barricade against this trend: creating distinction and delivering an Ultimate Customer Experience®. (UCX)

Think of the UCX as a force field against the commoditization storm. It’s not just about providing good service; it’s about crafting memorable, emotional interactions that leave customers raving about your brand. It’s about understanding their deepest needs and desires and exceeding their expectations in surprising and delightful ways.

And here’s the beauty: it works for businesses of any size or industry.

Let’s face it: price is always a factor. But when you deliver a UCX, research clearly shows that price becomes secondary. Customers are willing to pay a premium for an experience that makes them feel valued, understood, and even a little special. One study states that 64% of customers consider the experience more important than the price.

  • But the journey to UCX must always begin with an effort to create distinction.
  • What sets your business apart?
  • Is it your innovative product features, your commitment to sustainability, or perhaps the unparalleled expertise of your team?

Distinction is not merely about being different; it’s about being strategically different in ways that resonate deeply with your target audience.

It’s about creating a narrative around your brand that is compelling, memorable, and impossible to replicate.

Yet, distinction alone is the first step. It must be intricately woven into the fabric of the Ultimate Customer Experience®.

old ways won't open new doors sign

This concept transcends the traditional notion of customer service; it’s about curating every interaction between your brand and your customers to be not just positive but unforgettable, as well. From the initial touchpoint to the post-purchase follow-up, every moment is an opportunity to reinforce your distinct value and forge an emotional connection with your customers.

Often, when we first think of UCX, what comes to mind are companies we’ve discussed so much it’s become clichéd – Apple, Amazon, Southwest, Zappos, etc. However, for small and medium-sized businesses, the path to distinction and delivering an Ultimate Customer Experience® might look different, but it is equally critical.

It could be the local café that remembers your name and order, creating a sense of belonging, or the online retailer whose packaging and personalized notes make every delivery feel like a gift. These touches of distinction and customized experiences can transform a routine transaction into a memorable event, fostering customer loyalty and advocacy.

As businesses navigate the complexities of modern markets, the twin strategies of creating distinction and delivering an Ultimate Customer Experience® emerge as the most effective defense against the forces of commoditization and price competition.

By focusing on what makes your brand uniquely valuable and consistently delivering exceptional experiences, you can elevate your offering beyond the mundane, fostering a loyal customer base that values your brand for reasons far beyond price.

In this way, distinction and an Ultimate Customer Experience® are not just strategies for growth; they are imperatives for survival and success in today’s competitive landscape.


We help organizations (like BMW, Apple, Cisco, and literally hundreds more) and their leaders create distinction and deliver the Ultimate Customer Experience® through custom-designed approaches ranging from keynote presentations to UCX training, from executive consulting to coaching sales professionals. How may we assist you to beat the commodity trap and enhance profitability? Contact me!

The Ultimate Customer Experience®: Your Weapon Against Commoditization

The Ultimate Customer Experience®: Your Weapon Against Commoditization

This afternoon, I’m in a meeting in Buffalo, New York, listening to leaders of this retail company and their vendors talk about commoditization in today’s marketplace. In today’s rapidly changing business landscape, one of the greatest challenges organizations faces is the perilous trap of the “sea of sameness.” It’s all too easy to become just another face in the crowd, blending into a swarm of indistinguishable competitors.

But fear not, for there is a powerful antidote that can help you rise above this trap – the Ultimate Customer Experience®.

In my years as a professional speaker and author, I’ve had the privilege of working with organizations worldwide, helping them understand the significance of creating an unforgettable customer experience. Here’s are seven ways the Ultimate Customer Experience® can be your ultimate weapon against commoditization:

Distinctiveness is Your Shield: In a commoditized market, customers often make purchasing decisions based on price alone unless you provide them a reason to make a different choice. When you offer a unique and exceptional customer experience, you become a brand apart. You stand out in a crowded marketplace, and customers are more willing to pay a premium for what you provide. Distinctiveness becomes your shield against price-driven competition.

Building Emotional Connections: The Ultimate Customer Experience® goes beyond transactions; it’s about forging emotional connections with your customers. When you invest in creating meaningful, memorable interactions, you develop loyal advocates who not only return but also spread the word. These customers become your brand ambassadors, helping you expand your influence.

Consistency is Key: A crucial aspect of delivering the Ultimate Customer Experience® is consistency. Your customers should know what to expect every time they interact with your brand. You cannot become “Ultimate” if what you deliver is random. Consistency builds trust, and trust is the foundation of long-term relationships. Organizations that prioritize consistency demonstrate their commitment to excellence.

Continuous Improvement: The pursuit of the Ultimate Customer Experience® is a journey, not a destination. Embrace a culture of continuous improvement, always seeking ways to enhance the customer journey. Gather feedback, analyze data, and adapt your strategies accordingly. This commitment to growth not only keeps you ahead of competitors but also delights your customers.

Personalization and Inclusivity: In today’s diverse world, personalization and inclusivity are essential. The Ultimate Customer Experience® acknowledges the individuality of each customer and ensures that no one feels left out. This works in both B2B and B2C situations. As an article in Harvard Business Review stated, “The fundamental change in B2B is that it has become more like B2C.” By catering to diverse needs and preferences, you expand your reach and make everyone feel valued.

create distinction to battle against commoditization

A Competitive Edge: Commoditization often leads to price wars that erode profitability. However, by providing the Ultimate Customer Experience®, you shift the focus away from price. Customers are willing to pay more for an exceptional experience, giving you a competitive edge and increased revenue.

Authoritative Insights: As an author and professional speaker, I’ve witnessed how organizations that invest in our training on the Ultimate Customer Experience® gain authoritative insights into their industry. They become thought leaders and trendsetters, setting the standard for excellence.

It’s important to remember that the Ultimate Customer Experience® is not just a strategy; it’s a commitment to excellence that helps organizations transcend the trap of commoditization.

It’s about creating a distinct, emotional, and consistent experience that builds trust, fosters growth, and makes your brand a global leader.

As you embark on this journey, remember that it’s an ongoing process that requires dedication and continuous improvement. Seek out diverse perspectives, stay relevant on a global scale, and never stop advocating for the importance of standing out and delivering the ultimate customer experience.

And if we can help you with training your team, coaching your executives, and consulting with your leaders, we stand ready to be of personal assistance.

Write me at: Info@ScottMcKain.com — or call +1-800-838-6980.

By embracing these principles, you’ll not only escape the commoditization trap but also lead your industry with unwavering distinction. Your customers will thank you, your brand will thrive, and your organization will reach distinctive heights of success.