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The Link Between Manager Performance and the Ability to Improve Customer Experience

A manager reviews customer experience best practices on a monitor with an employee

Key takeaways: 

  • Manager performance directly shapes customer experience because they set the cultural tone, directly interact with customers, develop employees, streamline processes, and monitor performance metrics. 
  • Competent managers empower employees to make decisions that improve customer interactions. 
  • Organizations should focus on providing managers with the necessary skills and perspective through leadership development programs to drive a service-first approach. 

Better managers lead to better employees, and better employees naturally improve customer experience. It sounds simple in theory, almost obvious, but in reality the connection is much more complex. 

Take the definition of manager performance, for example, which is subjective to a company’s mission. One organization may measure success by profits, while another emphasizes efficiency or innovation. Yet, a manager focusing too heavily on the bottom line is a sure way to antagonize customers. 

This is where manager performance goals play an important role. Competence should be measured in how leaders influence their employees to show up in their roles and provide services because these nuances directly shape the customer experience. 

Understanding this link is essential for any company looking to implement customer experience best practices that foster loyal customers. 

How Managers Influence Customer Experience 

Managers are the pulse of how a company interacts with its customers and improves their experience, and this can be seen in the way they set expectations and improve processes that affect customers, among other ways. 

Let’s break down how their influence plays out. 

1. Setting the Tone and Culture 

A customer’s experience starts long before a client walks through the door or visits your website. It starts with culture. 

Managers are the ones who set that tone. If they communicate a clear vision of what great customer service looks like and back it up with consistent action, employees know what standard they’re aiming for. Without that clarity, the way they interact with the customer becomes inconsistent and reactive. 

One of the most impactful ways they do this is through empowerment. A rigid system where employees have to escalate every little issue frustrates both staff and customers. But when managers trust their teams to make judgment calls, like offering a replacement product or resolving a billing dispute on the spot, customers walk away feeling valued. 

Empowerment builds confidence in employees, and that confidence translates directly into smoother, more positive customer interactions. 

In short, managers define the culture that either enables or hinders the ability to improve customer experience. 

2. Direct Customer Interactions 

Culture-setting is crucial, but words only go so far. Managers also influence customer experience through their own behavior, especially in how they engage directly with customers. 

A manager who visibly prioritizes customer satisfaction, whether by stepping in to resolve a tricky complaint or even just modeling the right tone in conversations, sends a clear message on how to treat customers. 

On the other hand, when customers see a manager personally responding to their concerns, it changes the dynamic. They will feel that their voice carries weight instead of feeling brushed off. 

Employees notice it too. If their leader goes the extra mile to improve a customer’s experience, they’re more likely to follow suit. This kind of leading by example is more powerful than any training. 

3. Employee Development and Engagement 

Of course, no manager can personally interact with every customer. That’s why developing your employees is one of the most high-impact ways to influence the customer journey. Customers feel the difference immediately when staff are well-trained and motivated. 

Training goes beyond the basics of how to handle a transaction. Soft skills like listening and empathizing enable the employee to respond effectively to customer requests or issues. 

Engagement plays an equally important role in improving a customer’s experience. And, according to Gallup, managers account for 70% of the variance in employee engagement

That’s a staggering statistic, but it makes sense. Managers set performance goals, give feedback, and recognize when someone on the team goes above and beyond. These actions directly impact morale. 

This is also where coaching comes into play. For example, Highly Effective Organizations’

(HEO) manager’s program and one-on-one coaching with employees ensure everyone feels invested in their own growth while staying aligned with company goals. 

Ultimately, a motivated employee base is one of the most reliable customer experience best practices any business can adopt. 

4. Process Improvement and Technology 

Going beyond the day-to-day, managers bring a bird’s-eye view to improving the overall customer experience. They are not locked into every customer conversation, so they can spot patterns in complaints or inefficiencies. 

Additionally, managers are responsible for analyzing feedback and looking at trends to identify pain points and come up with solutions that improve the customer journey in the long term. This could be anything from introducing new technology to updating workflows to be more efficient. 

They also make sure new initiatives or changes are rolled out smoothly so service isn’t disrupted. 

5. Measuring and Monitoring 

Finally, what isn’t measured can’t be improved. Thus, an important manager performance goal should be to establish systems that capture customer input, such as surveys and direct outreach. 

Tracking metrics like Net Promoter Score (NPS), Customer Effort Score (CES), and retention rates enables them to see what’s working. Monitoring these data points also helps managers fine-tune strategies to improve customer experience. 

Practical Takeaways for Organizations 

Customer experience best practices can only be applied with strong leadership driving a service-first approach. 

As such, organizations should invest in giving managers the skills and perspective to directly shape customer outcomes. Initiatives like leadership development programs, paired with practical tools like easy-to-apply workbooks, ensure lessons move from theory to daily practice. 
At HEO, our customized leadership development solutions are designed to elevate leaders’ performance and, in turn, significantly improve your customers’ experiences. Book a call with us today to learn how we can help your managers become the driving force behind customer loyalty and long-term growth.

Tim Nolan, Ed.D., has worked with tens of thousands of leaders and hundreds of organizations to drive sustainably high levels of employee commitment, engagement, performance, and retention.

Tim is also the creator of the 12-month Highly Effective Managers Program, which numerous organizations and over 7,000 people leaders at all levels have used to positively transform organizations.

Tim has written 13 books, including The Essential Handbook for Highly Effective Managers, 3rd Edition, presented at numerous conferences, and is a leadership and organizational performance expert. He also hosts The Modern Leadership Podcast.

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