Why Companies Must Improve Customer-Facing Functions

Companies recognize that enhancing their brand image requires investments in customer-centric strategies. Yet, a critical driver of a positive brand image is still overlooked: customers’ perceptions of a company are heavily influenced by the quality of their interactions with the customer-facing functions within that company.

Customers engage with brands through customer-facing employees, who are typically the first and last people with whom they interact. Many of the functions performed during those interactions are critical to the customer experience. Thus, the ability of those employees to perform their respective functions efficiently and effectively is essential for maintaining a strong brand reputation.

To perform well, customer-facing employees must be aware of the importance of their roles within the company, be equipped with the right tools, receive appropriate training on how to use those tools, and be empowered to make informed decisions. And, they also need to check all those boxes in a way that aligns with the company’s vision, culture, and values.

Engaged Customers

Even before the pandemic began, challenging traditional operations and business models, the business world was already facing a high level of change and disruption. Developing a competitive edge and increasing market share had become even harder in an unpredictable environment.

One persistent rule remains: consumers will continue to spend their money with companies with which they feel emotionally connected.

According to a Gallup poll, highly engaged customers generate 23 percent more revenue on average, and even higher in specific industries. Engaged customers buy more, buy more often, are more loyal, and are more likely to promote companies over the long term.

The Impact of Customer-facing Functions

Positive experiences with customer-facing employees primarily drive customers’ emotional connection with companies. Research confirms that frontline employees have a direct impact on customers’ levels of satisfaction and engagement.

When frontline employees can handle an issue at the first point of contact with a customer, the positive impact on customer satisfaction is greater than it would be at any other time.

Customer-facing employees who are better prepared and properly motivated to perform well generate increased revenues and increased profits for their employers. And, while this appears obvious for retail and service businesses, it applies to all industries.

The Financial Impact of Customer-Facing Excellence

The business case for investing in customer-facing functions is compelling. Research from Bain & Company demonstrates that increasing customer retention rates by just 5 percent can boost profits by as much as 95 percent. Since frontline interactions are the primary driver of retention, the ROI of empowering these employees becomes clear.

The inverse is equally telling. Businesses lose billions annually due to poor customer service, with most losses stemming from customers who switch to competitors after negative frontline interactions. Each lost customer represents not just immediate revenue, but the entire lifetime value of that relationship.

The investment required is typically modest. Improving CRM systems, enhancing training programs, and empowering frontline decision-making costs a fraction of annual revenue, while the impact on customer lifetime value and retention can transform bottom-line performance. In crowded markets where products can be copied and prices matched, exceptional frontline experiences create loyalty that competitors cannot easily replicate.

Pillars of Successful Customer-facing Functions

To engage and empower frontline employees, companies must provide them with the necessary information, training, empowerment, and opportunities for engagement.

Information

To effectively serve customers, companies must provide frontline functions pertinent data and proper knowledge to make informed decisions in real time. For instance, companies could invest in new CRM technology or customize their existing CRMs to better support those functions.

Customer-facing employees would then be able to provide real-time service to customers by accessing pertinent company information, communicating with other departments, and much more.

Training

Customer-facing functions are best performed when employees understand how their performance fits within the broader company picture.

Corporate training on company values, policies, and procedures must be part of employees’ onboarding.

Recent studies have found that one-third of frontline retail workers received no formal training. Even among those who did, a significant number of employees reported it was ineffective and not engaging. A real opportunity for informed and committed companies.

Empowerment

Empowering employees to make decisions based on customers’ specific situations is most effective in improving customer satisfaction. Where risks must be managed, those can be input into decisioning models that could easily be integrated with CRMs.

Consider this disappointing experience with a popular big-box retailer. While their systems showed an item in inventory, their associate was unsurprised to find out it was not and simply relayed that information to the shopper. What if that associate had offered to send the customer an SMS when the product became available again or been empowered to offer a small discount on that subsequent purchase? What if she had researched nearby locations for the board game we wanted? Any of these actions would have transformed a frustrating experience into one that built loyalty. Instead, the interaction eroded confidence in both the company’s systems and its people.

Engagement

To perform their functions effectively, employees need to be engaged and motivated.

A study published in the Harvard Business Review reported that 56 percent of frontline employees had suggestions for improving company practices, and 43 percent believed these insights could lead to cost reductions for the company.

Customer-facing employees possess a high level of firsthand knowledge and insight, from which employers can benefit. Encouraging those insights, capturing them, and adjusting policies and procedures where applicable will keep employees engaged, knowing that their feedback is valued.

Employee motivation increases when employees feel that their efforts have a tangible impact, and customer satisfaction improves when employees are motivated to excel.

Companies achieve sustainable, long-term success by training, equipping, and empowering their customer-facing employees, the very ones who most directly shape the customer experience.

Implementing Customer-Facing Excellence: A Practical Approach

Improving customer-facing functions requires more than new systems or training programs. It demands a fundamental shift in how organizations value and support frontline employees. Success begins with a culture change driven by leadership.

Secure Leadership Commitment

Transformation of customer-facing functions must start at the executive level. Leaders need to visibly prioritize frontline excellence through resource allocation, performance metrics, and their own behavior. When executives regularly engage with frontline teams, listen to their insights, and act on their feedback, the message becomes clear: these roles matter strategically, not just operationally.

Assess Current State

Before implementing changes, understand where gaps exist. Evaluate current frontline performance through customer feedback, employee surveys, and operational metrics. Identify which of the four pillars above needs the most attention. This assessment provides a baseline for measuring improvement and helps prioritize investments.

Start with Quick Wins

Build momentum by addressing constraints that frustrate both employees and customers. If frontline staff lack the real-time inventory access they need to perform their function, fix that first. If approval processes for customer accommodations take too long, streamline those. Quick wins demonstrate commitment, build momentum and credibility for broader changes, and generate early ROI that justifies continued investment.

Implement Systematically

Roll out improvements in phases. Begin with one region, department, or customer segment. Learn what works, adjust what doesn’t, then scale. This approach manages risk, allows for iteration, and creates internal champions who can support wider adoption. Each phase should include clear success metrics and feedback mechanisms.

Manage the Cultural Transition

Frontline employees may resist empowerment if past culture punished initiative or if they fear making wrong decisions. Address this through transparent communication about what’s changing and why, coaching that builds confidence in decision-making, and recognition that celebrates employees who use their new authority effectively. Make it safe to try, fail, learn, and improve.

Sustain the Commitment

Initial enthusiasm fades without sustained reinforcement. Embed customer-facing excellence into performance reviews, promotion criteria, and compensation structures. Regularly review metrics, celebrate successes, and address backsliding quickly. Make frontline performance a standing agenda item in leadership meetings, signaling its ongoing strategic importance.

Meaningful transformations may not happen overnight, but benefits begin accruing within the first quarter, as quick wins take effect. Organizations that commit to a systematic approach create lasting competitive advantage through frontline excellence.

Final Thought

Competitors can quickly match products and prices, but not customer-facing excellence. The organizations that thrive recognize frontline employees not as operational overhead, but as strategic assets whose performance directly drives retention, revenue, and reputation. By investing in the information, training, empowerment, and engagement of customer-facing teams, companies create unique experiences that build loyalty. The question isn’t whether to invest in customer-facing functions, but whether you can afford not to.

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