In recent years we’ve heard a lot about employee engagement, and much of it is bad news.
According to Gallup’s 2024 study, 62% of employees are not engaged. This is often referred to as “quiet quitting.” Perhaps even worse, 15% of employees are actively disengaged. Some call this “loud quitting.” Only 23% of employees are actively engaged in their work.
In the U.S., employee engagement has declined to a 10-year low, with the percentage dropping by two percentage points since 2023. Ouch!
How does this impact individual businesses? Gallup finds that companies with highly engaged workforces see 21% higher profitability and 17% higher productivity compared to those with disengaged workers.
Meanwhile, there’s a related story that deserves meticulous attention: customer engagement.
Dr. Joseph Michelli is an excellent source. He’s a renowned author, speaker, and business consultant known for his expertise in customer experience, leadership, and organizational culture. Over the years, he’s earned a reputation as a thought leader in the realm of business strategy—helping companies create meaningful connections with customers while improving their internal operations.
His approach is rooted in the belief that businesses should place people—customers, employees, and stakeholders—at the heart of everything they do.
Michelli has written bestselling books on Starbucks, Zappos and Airbnb, and his book Prescription for Excellence hit #1 on the New York Times, Wall Street Journal, and USA Today bestseller lists.
His most recent book is titled All Business is Personal.
Michelli cites research showing that customers with a strong emotional connection with a business have a 306% higher lifetime value to that business than those without such a bond. That begs the question: how does the idea of a strong emotional connection apply to, say, a company that sells you tires for your car? That seems more transactional than personal.
Michelli happens to have experience with exactly that same scenario. He bought tires from one shop that promised lifetime tire rotation as part of the deal. But when he never heard from them, he concluded that they were hoping he’d never return for a rotation. He later bought tires from another company that also promised free rotations as part of the value proposition. But this second company sends periodic text messages reminding him to return for (free) tire rotations to preserve his investment. He says that company has earned his trust as a customer for life.
Emotional intelligence is a key ingredient of customer engagement, Michelli says. “The great news is that unlike IQ, where we’re kind of born with that learning potential, EQ is a trainable phenomenon. We can mindfully get better at it by learning to read nonverbals and by asking thoughtful questions.”
With the rise of artificial intelligence and automation, how does Michelli see technology affecting the personal side of business relationships in both the near future and down the road?
On the positive side, he cites One Medical, an Amazon-owned primary health care service that provides in-person care and online resources, including a mobile app. When a patient enters an exam room with a One Medical doctor, the conversation is recorded and transcribed (with the patient’s permission) so the doctor can focus on the patient instead of on notes and a computer keyboard.
“Unfortunately, we also see lots of brands where you can’t find an 800 number on their website and you can’t speak to a human,” Michelli says. “They put chatbots everywhere. Some of them are pretty sophisticated, but when you need a human there’s no human to be had.”
Michelli’s book is based on mounds of rock-solid research, and its dedication to his grandchildren summarizes his hope: “May they and their peers inherit and nurture a world where technology assists but humanity prevails.”
Indeed, all business is personal.