Employee Ownership: Boosting Customer Satisfaction

Employee Ownership (EO) is more than just a business model. It’s a proven way to elevate employee engagement and drive customer satisfaction. But how exactly does this structure impact the customer experience (CX), and why should businesses consider it?

In this blog, we’ll explore the powerful connection between EO, employee engagement, and CX, and share insights on how companies can harness this model to deliver standout service and build lasting customer loyalty.

Table of contents:

What is Employee Ownership?

Employee Ownership is a business model where employees hold a significant stake in the company they work for. According to the Employee Ownership Association, there are 1,650 EO businesses in the UK. Each business can tailor the format of its EO to its unique requirements. The three main types of EO are:

  • Direct Ownership
  • Indirect Ownership
  • Combined (Hybrid Ownership)

The Employee Ownership structure fosters a culture of collaboration and shared responsibility, resulting in a more engaged workforce. When employees feel invested in the success of the business, it’s no surprise that they become more motivated to provide excellent customer service which can lead to a better customer experience.

Research shows that businesses with high employee engagement consistently report higher customer satisfaction scores. When employees feel like stakeholders, their dedication to delivering exceptional service naturally grows—impacting customer loyalty, repeat business, and even profitability. For more about EO, visit the Employee Ownership Association.

How Does EO Impact Customer Experience?

Employee Ownership doesn’t just benefit employees—it significantly boosts the customer experience too. Engaged employees are more likely to go above and beyond to meet customer needs. The reason? Employees have a vested interest in the company’s success.

EO businesses regularly outperform non-EO peers in almost every metric – they’re 8-12% more productive and invest more in their people, innovation, and communities. 

At insight6, we’ve seen this firsthand with our instant insight feedback tool, which allows businesses to gather real-time insights from customers and employees alike. By collecting feedback from engaged employee owners, companies can identify areas for improvement and implement changes quickly. As a result, these businesses tend to create a better, more responsive customer journey, ensuring customer needs are met at every touchpoint.

Why Does Employee Experience Matter for CX?

The link between Employee Experience (EX) and Customer Experience (CX) cannot be overstated. Happy employees lead to happy customers—it’s that simple. We explored this concept in a previous blog on the ROI of Employee Well-Being. When employees are well taken care of, they’re more likely to create positive experiences for customers.

Employee Ownership naturally lends itself to higher levels of employee satisfaction. When people feel valued, they become more enthusiastic about their work, which translates into improved interactions with customers. But, as we’ve discussed before, it’s not just about customer satisfaction; it’s about building loyalty, a true differentiator in the modern market.

How Can You Measure the Impact of EO on CX?

Understanding the impact of Employee Ownership on CX isn’t just about instinct—it’s about data. Tools like our instant insight allow businesses to measure customer satisfaction and employee engagement in real time. With the right feedback and metrics, businesses can pinpoint what’s working and what needs improvement, making data-driven decisions that keep customers coming back.

For EO companies, measuring both employee and customer feedback is crucial. As we explored in our post on the cost of bad employee experience, poor employee engagement can lead to a breakdown in customer satisfaction. However, by regularly monitoring feedback from both groups, EO businesses can maintain a strong connection between their workforce and customers, ensuring continued success.

What’s the Difference Between Customer Satisfaction and Loyalty?

While customer satisfaction is important, true success lies in building customer loyalty. Employee-owned businesses often have an edge in this area. Why? Because loyal customers aren’t just happy—they are advocates. They refer new customers, spend more, and stay with a business longer. Our focus and listening groups help businesses get to the heart of what keeps customers coming back, or what can be improved.

EO businesses naturally encourage customer loyalty because engaged employees provide a level of care and service that goes beyond the ordinary. By aligning employee incentives with customer outcomes, EO businesses can build stronger, longer-lasting relationships with their clients.

How Can Employee Ownership Elevate CX Further?

To truly maximise the benefits of Employee Ownership, companies need to continuously invest in their workforce. At insight6, we offer training and development, mentoring and coaching, and team upskilling to ensure employees—whether owners or not—are equipped to deliver world-class customer service.

insight6 CEO to speak at Employee Ownership Conference
Discover the secrets of customer experience (CX) and transform your business with global CX leader, Jonathan Winchester of insight6

It’s not enough to just own a stake in the company; employees need to feel empowered and skilled to take action. By embedding a culture of learning and improvement, EO companies can ensure that their teams are always growing, always improving, and always focused on providing the best possible customer experience.

Conclusion: Employee Ownership and CX—A Winning Combination

Employee Ownership and Customer Experience go hand in hand. When employees are engaged, customers benefit. And when customers are satisfied, businesses thrive. But to unlock the full potential of this synergy, companies need to invest in the tools, training, and strategies that keep their people—and their customers—happy.

Interested in learning more about how Employee Ownership can elevate your CX strategy? Or looking for ways to improve customer satisfaction through employee engagement? At insight6, we’re here to help. To find your local CX Specialist, call +44 (0) 800 970 8987 or visit www.insight6.com.


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