The Silent Way You're Losing Clients: It's Not Just About Customer Service, It's About Employee Engagement
Here's a hard truth that many business owners don’t see: sometimes, you're losing customers not because of your product, but because of your employees' disengagement.
We’ve all been there—one negative interaction with a company, and it changes our entire perception. A frustrated customer service rep, an indifferent salesperson, or an unresponsive support or sales admin team can make a client believe that poor treatment is the company culture, not just a one-off experience. And the scariest part? Some customers don’t complain. They just leave...
Did you know that 96% of your customers won’t even complain if they have a bad experience with your company? They’ll quietly go to your competitor or simply stop buying from you, especially if you're in a B2B market where they rely on your product or service. One bad interaction with a disengaged employee could create a negative emotion so strong that moves your customer to make the switch, and you might not even realize it until it's too late.
Sometimes, in the pursuit of creating a great product and perfecting internal processes, we can unintentionally overlook a critical component—our employees’ engagement. It’s easy to get caught up in improving customer satisfaction, refining services, or focusing on growth, but if our teams don’t feel valued, supported, or fulfilled in their roles, it’s hard for them to consistently deliver great customer experiences. When employees are engaged, the difference in customer interactions is clear, and that can be a game-changer for retention.
I’ll never forget when I purchased a software solution that looked promising on paper—lots of features, good pricing. But there was a big issue: the software wasn’t intuitive, and the service personnel didn’t provide any support. I was left on hold for ages, and when I did finally get through, the staff was rude and didn’t answer my questions. There were no manuals or helpful guides, either. After multiple frustrating interactions, I canceled my monthly contract and moved to a competitor. While the new software didn’t have all the same features, the customer service was excellent, and I could get the results I needed. To this day, I still happily recommend the second company to others.
Both of these stories highlight a key point: no matter how good your product is, if your employees aren’t engaged, it will show up in their customer interactions. Disengaged employees can create a perception that your company doesn’t care about its customers, which can drive clients away—even if they don’t voice their frustrations.
While escalations might save a client in some cases, not all customers will take that step, especially if they’re repeatedly receiving bad service. For many, it's easier to quietly move on to a competitor rather than fight to get better treatment. Inconsistent service can gradually wear down even loyal customers, making them less likely to raise the issue and more likely to simply leave. This silent churn is often the most dangerous because it can go unnoticed until it's too late.
Here are some tips that have worked for me to ensure employee engagement doesn’t sabotage your customer relationships:
Check in With Your Teams: Regularly talk to your teams and understand their morale. Address any issues early, before they start affecting how they interact with customers.
Empower Your Employees: Give them the autonomy and tools they need to solve customer problems quickly and effectively. When employees feel trusted and capable, they’re more likely to go the extra mile for customers.
Culture Check: Build a company culture that values both employees and customers equally. After all, one can’t thrive without the other.
At the end of the day, keeping both your customers and your employees happy should be a top priority. Engaged employees not only improve customer retention but can turn satisfied clients into loyal advocates for your business. It’s a win-win when everyone feels valued.
What has worked for you in keeping employees engaged? How have you noticed employee satisfaction impacting customer relationships? I’d love to hear your thoughts and experiences
By Gabriela Padilla
