Page 151 - The New Gold Standard

Build a Business Focused on Others
Employee Employee
Baseline Engagement Engagement
Employee +3% from +7% from
Engagement Baseline Baseline
5.0 Customer Engagement Customer Engagement Customer Engagement
Employee Engagement Mean 43% 4.06 50% 4.19

57%

3.0 3.92
Employee Engagement Employee Engagement Employee Engagement
Improvement

Figure 6.3
The Demonstrated Correlation between Employee
Engagement and Customer Engagement at Ritz-Carlton

(Data courtesy of The Gallup Organization)

C Focusing on Those You Serve D

Like many other businesses, Ritz-Carlton has had a rich tradition
of measuring customer satisfaction. Shortly after they began as-
sessing Ritz-Carlton customer satisfaction, Gallup approached
executives at Ritz-Carlton about the possibility of shifting their
core customer metric to one of engagement. Consistent with
their quest for excellence, the leadership of Ritz-Carlton listened
to the purported advantages of measuring customer engagement
(a better metric of the emotional connection and perceived
fit held by a customer toward a business, and overall customer
loyalty) as opposed to customer satisfaction (a measure of the
thoughts a customer has toward the business’s offerings).
Bill Diggins, Ph.D., senior consultant of Gallup, speaks to the
inclusive and methodical process that went into Ritz-Carlton’s
adopting Gallup’s customer engagement tool, which they call

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