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Three Pillars That Will Keep Your Brand Attractive to Customers, Employees, and the Rest of the World
In this article, CX Thought Leader Frans Reichardt explores how integrating Customer Experience (CX), Employee Experience (EX), and Societal Experience (SX) creates a compelling brand appeal. He stresses the importance of a holistic approach in fostering sustainable practices, enhancing worker satisfaction, and improving customer interactions to achieve lasting brand loyalty.
Right after I finished my speech, he came up to me. This smooth older gentleman in a gray jacket with thin white hair and modern rimless glasses. In my talk, I emphasized the importance of turning companies into listening organizations by developing a listening mindset throughout the company.
He looked at me with frowned eyebrows. “I was triggered by the third X you mentioned in your speech,” he said. "Sometimes it feels like my company must carry the whole world's burden on its shoulders. Last year we had our annual Summer Party during which we also planned to livestream a football match at the World Championship in Qatar. We canceled it because we were afraid our employees or business partners would post pictures on social media, that could tempt people to accuse us of not caring bout Qatar's working conditions and human rights. We're just running a business, you see. I think that's all we should do. Nothing more than that."
As I saw other attendees queuing behind him, I suggested having a coffee later to discuss the three Xs - especially the third X - in detail. Our conversation one week later, inspired me to share my thoughts in this article. Read on to discover the third X that will keep your brand attractive to customers, employees, and the rest of the world.
The first X: Customer Experience (CX)
The first X that will keep your brand attractive is Customer Experience (CX). CX refers to all interactions, perceptions, and emotions that customers have with your company or brand throughout all customer journeys, from initial awareness to post-purchase support. It includes every touchpoint and interaction that a customer has with your company, including marketing, sales, finance, logistics, customer service, product or service delivery, and ongoing engagement. It even includes touchpoints your customers have with each other.
Positive vs. Negative Customer Experience
Depending on your industry and the type of product, service, or solution you offer, a positive customer experience is mainly influenced by factors such as ease of use, personalized interactions, responsiveness, consistency, reliability, and satisfaction with the product or service.
On the other hand, a negative customer experience can result from factors such as poor service, long wait times, lack of communication, product issues, and unmet expectations. Negative experiences can lead to customer dissatisfaction, churn, negative word-of-mouth, and damage to your company's reputation.
Prioritizing Customer Experience
If your company prioritizes customer experience you will focus on delivering value, building relationships, and exceeding customer expectations at every touchpoint. This requires understanding and meeting the needs and expectations of your customers, providing exceptional customer service, and creating memorable and meaningful experiences that build loyalty and advocacy. These companies invest in customer-centric strategies, they gather feedback, use data and insights to understand customer preferences and behaviors, and continuously improve and innovate to enhance all customer journeys.
The second X: Employee Experience (EX)
The second X that will keep your brand attractive is Employee Experience (EX). EX refers to the collective interactions, perceptions, and emotions that employees have with your organization. It includes all aspects of employees' interactions with your company, including recruitment, onboarding, training, development, work environment, culture, benefits, leadership, and overall workplace experience.
Positive vs. Negative Employee Experience
Your company's employee experience is positively impacted by factors such as job satisfaction, engagement, motivation, well-being, and a sense of belonging within the organization. Your employees will be attracted by opportunities for growth, recognition, feedback, meaningful work, work-life balance, and a supportive work culture. A strong employee experience can lead to higher levels of employee retention, productivity, and overall organizational performance.
A negative employee experience can result in low morale, disengagement, decreased productivity, and lower turnover. Factors such as poor communication, lack of recognition, inadequate resources, ineffective leadership, and toxic work environments can contribute to a negative employee experience.
Prioritizing Employee Experience
If your company prioritizes employee experience it will invest in creating a positive work environment, fostering a culture of respect and collaboration, providing opportunities for development and advancement, and listening to employee feedback to continuously improve the workplace. By focusing on employee experience, you can attract and retain top talent, enhance employee engagement, and create a more productive and fulfilling work environment.
Now let us take a look at the third X which is relatively new to most organizations but will have a growing impact on your future business.
The third X: Societal Experience (SX)
The third X is what I call 'societal experience'. It refers to the impact your company has on society as a whole, including customers, employees, communities, and the broader public. The societal experience of your company is shaped by all its actions, values, policies, and practices, as well as its contribution to social issues, economic development, and environmental sustainability.
Positive vs. Negative Societal Experience
Your company has a positive societal experience by being socially responsible, ethical, and transparent in its operations. This includes initiatives such as corporate social responsibility programs, philanthropic efforts, diversity and inclusion practices, environmental stewardship, and community engagement. Companies that prioritize their societal impact invest in building trust, loyalty, and goodwill among stakeholders, as well as contributing to the greater good of society.
On the other hand, if your company has a negative societal experience due to actions that harm communities, exploit workers, or disregard environmental concerns, it may face public scrutiny, backlash, and reputational damage.
Prioritizing Societal Experience
Overall, the societal experience of your company reflects its role in society, its commitment to social responsibility, and its efforts to make a positive difference in the world beyond its core business activities. It is important to consider your company's societal impact and strive to create a positive and sustainable relationship with society that benefits both the company and the broader community.
Example: e5 fashion stores
A good example of a company that puts the three X's into practice is e5, a chain of retail fashion stores in Belgium. E5 has almost 400 employees of whom 95% are women. For more than 40 years, e5 has been much more than an ordinary clothing store. E5 says it is "a warm meeting place where there is room for personal contact and service. The customer is central and is part of a large family of people who love beautiful, stylish things. We stand for quality and want to get the best out of life together with you." E5 offers quality fashion with excellent service tailored to the customer's needs. Its biggest asset is employees that are ready to help and inspire their customers, with knowledge and a personal touch.
e5 is more than this.
Take responsibility for your impact
It is e5's strategy to rank among the top in Belgian fashion in terms of sustainability. "That is why we take responsibility for the impact we have as a company: from the climate impact of our boutiques to the working conditions in our supply chain, from the quality and lifespan of our clothing to its circular use. Year after year we want to increase our positive impact with our Refive culture." e5 has called its sustainability program 'Refive' which refers to the five pillars of the program: Respect, Reduce, Reuse, and Recycle, Refive (in Dutch and French).
Analyze your impact on people, society, and the environment
In 2023, e5 carried out a materiality analysis to assess where it has an impact on people, society, and the environment and through which elements your company is affected, and to identify and manage stakeholders. During this materiality analysis, e5 examined which are the most important groups of stakeholders and mapped out their needs and expectations. E5 then also identified which environmental, social, and governance issues have the greatest impact on its business operations, or where e5 as a company has the greatest impact. These material issues were prioritized in e5's five pillars of sustainability: Respect, Reduce, Reuse, Recycle, and Refive, and include objectives and projects throughout the entire supply chain, from design to end of life.
In 2024, e5 will continue its dialogue with its main stakeholders, suppliers, customers, and employees, to further test its strategy, guided by the European Sustainability Reporting Standards. E5 wants to be fully prepared for the upcoming European legislation, including the Corporate Sustainability Reporting Directive.
Put it into practice
Like every other strategy, the proof of the pudding is in the eating. Succeeding is putting it into practice and putting your money where your mouth is. E5 started initiatives in several areas, like
- energy management, including renovations, solar panels and charging stations,
- water consumption and use of chemicals,
- animal suffering (e5 is a fur-free retailer),
- waste management, like more sustainable packaging, recycled plastic, and no single shipments,
- care & repair, like newsletters and a blog with washing and maintenance tips,
- sustainable design,
- human resources policy, including health, safety, and wellbeing, diversity, inclusion, and equal treatment, and business ethics and integrity, like women in management positions, over 20 different nationalities,
- social commitments and community impact, like supporting projects of Oxfam, and Pink Ribbon.
The 3 X's help differentiating your brand
Customer Experience (CX), Employee Experience (EX), and Societal Experience (SX) are closely related and all interconnected. A seamless integration of these experiences can lead your company to improved customer, employee, and business partner satisfaction, loyalty, and advocacy, ultimately contributing to the success of a business. You can differentiate yourself from competitors, build customer loyalty, drive repeat business, and ultimately achieve long-term success and growth.
Consider the long-term impact
To build a future-proof business all companies should consider the long-term impact of their actions on the environment, society, employees, and customers. Today, people are increasingly conscious of their purchasing decisions and are drawn to brands that align with their values. Therefore, companies should strive to adopt sustainable practices, support social causes, and prioritize ethical business conduct. By doing so, they not only create a positive impact on the world but also cultivate loyal and engaged customers, employees, and business partners.
Curious to learn how you can craft a human-centered CX? Listen to this episode of the CX-Wise podcast featuring Sally Mildren (CEO and Managing Partner of Boss Lady Consulting and ClarityPX), as she shares the underlying principles of putting human at the center of your customer experience goals.