Alternative data encompasses a broad spectrum of information, from social media sentiment and satellite images to transaction logs and IoT outputs. Employee experience and perception refer to how employees feel about their workplace, encompassing various elements such as job satisfaction, engagement, work environment, culture, and relationships with management. Collectively, these components shape the employee experience, which significantly influences an organization’s performance and strategic direction. This blog was created in collaboration with an alternative data provider, which specializes in harnessing and interpreting complex data sets to provide actionable insights into consumer behavior and employee sentiment and can help with leveraging employee perception and customer experience.
For more information on topics relating to data sourcing and compliance and to learn more about how Eagle Alpha is assisting financial institutions with their alternative data strategy, please contact us.
Understanding Experience and Perception Metrics for Customers and Employees
Research by Clootrack suggests that positive customer outcomes depend on engaged and empowered employees. By prioritizing employee motivation and aligning customer experience goals, companies can cultivate a workforce dedicated to delivering exceptional customer experiences (CX).
To address these challenges, Clootrack’s report outlines seven best practices to embed CX values into the employee experience.
- Understanding frontline teams is crucial, as recognizing individual motivations, especially among frontline staff, empowers them to provide value to customers.
- Involving employees in setting CX goals ensures alignment with their perspectives and fosters empathetic actions towards customers.
- Reframing business-centric KPIs into customer performance indicators (CPIs) benefits both customers and employees by focusing on fulfilling social, emotional, and practical needs.
- Ensuring executive alignment with CX goals is essential for inspiring employee buy-in and effectively driving customer-centric initiatives.
- Providing training on empathizing with customers and emphasizing the employees’ role in enhancing the customer journey enhances satisfaction and loyalty.
- Modifying HR processes to integrate CX principles reinforces organizational commitment to CX values and ensures employees are rewarded for their alignment.
- Empowering employees with insights and data enables informed decision-making and fosters a culture of continuous improvement.
Impact of Customer Experience and Employee Perception on Company Performance and Valuation
The connection between employee satisfaction and company performance is well-documented, highlighting the critical role of a positive employee experience. Satisfied employees are generally more productive, contributing to higher output and efficiency. Engaged companies with high employee satisfaction often see reduced turnover rates, thereby lowering the costs and disruptions associated with recruiting and training new staff. Additionally, a positive work environment fosters creativity and innovation, as employees feel more motivated and supported to bring new ideas forward.
Figure 1: Employee Satisfaction Leads to Better Customer Experience (Source: The People Experience Hub)
According to Clootrack, investors who integrate employee and customer experience insights from alternative data like employee and customer experiences can offer a competitive advantage, helping investors identify potential market leaders or undervalued companies, and providing predictive insights for early warning signs of potential issues or growth trajectories.
While the benefits of using employee and customer experience data are significant, there are several challenges and limitations to effectively leveraging this information. The quality and reliability of the data are paramount, as misinterpretations can occur if the data is biased, incomplete, or improperly analyzed. Integrating qualitative data with quantitative financial data requires sophisticated analytical tools and expertise, posing challenges in merging these disparate data types into a cohesive analysis framework.
Regulatory and ethical considerations, such as data privacy laws like GDPR in Europe or CCPA in California, must be navigated carefully. Furthermore, the subjective nature of employee and customer data means it can be influenced by numerous external factors, requiring cautious interpretation.
Alternative Data in Action: Clootrack
You can access Clootrack’s storefront on Eagle Alpha’s data discovery platform here.
Clootrack, adopted by numerous private equity firms, hedge funds, and financial institutions, leverages rapid, AI-driven data aggregation for due diligence, equity research, and strategic planning. Here’s a snapshot of how Clootrack’s employee experience dashboard analyzes employee reviews from January 2023 to February 2024.
Employee Perception
Examining 452,249 reviews from Glassdoor and Indeed across five brands, Walmart leads in review volume at 3.7%, followed by Starbucks (3.4%), CVS (2.2%), McDonald’s (1.9%), and Target (1.8%). McDonald’s stands out with the highest positive sentiment (53.29%), while CVS has the highest negative sentiment (47.17%). Starbucks excels in positive themes like benefits, coworkers, and the work environment. In contrast, McDonald’s shows significant variability in customer management and leadership sentiment.
Figure 2: Overall Employee Experience Brand Analysis Dashboard (Source: Clootrack)
Further analysis reveals moderate satisfaction with workload, ranging from 47.37% at CVS to 56.77% at McDonald’s. Management and leadership sentiment is lowest at Walmart (26.8%) and highest at McDonald’s (38.85%). Employee benefits are highly rated at Walmart (64.16%) and even higher at Starbucks (85.32%), with perks like free daily meals contributing positively, while low pay is a common negative factor.
Figure 3: Diving Deeper into Main Themes for Employee Experience (Source: Clootrack)
Customer Experience
Clootrack’s customer experience analysis focuses on top US supplement brands, utilizing customer reviews from Amazon, Walmart, GNC, and Vitamin Shoppe from July 2020 to January 2021. Premier Protein and Purely Optimal Store lead in review volume, indicating high customer engagement. Maryruth Organics excels in positive reviews with 84.42%, reflecting strong customer satisfaction, while Premier Protein follows with 76.83%.
In terms of specific themes, 55.36% of Vital Proteins customers positively mention taste and flavor, whereas Premier Protein enjoys a higher positive sentiment at 70.44%. A deeper dive reveals that Premier Protein’s caramel flavor is a significant point of discussion, with some customers describing the taste as artificial or overly sweet.
Figure 4: Diving Deeper into Main Themes for Customer Experience (Source: Clootrack)
Final Thoughts
In conclusion, alternative data, particularly employee perception and customer experience insights, provides investors with a more nuanced and comprehensive understanding of a company’s operational health and market position than traditional financial metrics alone. Clootrack’s advanced technology and robust data collection methodologies offer a powerful solution for analyzing these alternative datasets, enabling investors to swiftly identify growth opportunities and potential risks.
For more information on topics relating to data sourcing and compliance and to learn more about how Eagle Alpha is assisting financial institutions with their alternative data strategy, please contact us.
