Employee Engagement: Understanding Why Engaged Employees Are a Huge Part of Customer Loyalty

Oct 6

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10/6/2014  RssIcon

Are you looking for "outside the box" ways to improve your customer loyalty and retention? If so, you may want to consider spending some time better engaging your team in order to help them build a positive emotional bond with your business and brand. In today's blog post we'll take a look at a few reasons why employee engagement plays a major role in customer loyalty through higher morale, better customer service and lower turnover.

An Engaged Employee is Your Best Brand Advocate

Whether you operate online, offline or both, you're likely aware of the power of social media and how quickly a positive or negative sentiment can affect a brand. Engaging your employees is an excellent way to transform them into brand advocates who will be quick to share news, sales and other relevant information in order to draw in new business and increase the loyalty of your current customers. Engaged employees take the initiative to tout just how great your products and brand are because they feel like stakeholders in your success rather than just cogs in the machine.

Higher Morale Leads to Better Customer Service

If you are a business owner or a manager that oversees a team of employees it probably comes as no surprise that statistics show that improving employee engagement can have a direct impact on your sales and profits. For example, in a study performed a few years ago Sears noted that a 5 percent improvement in their retail employees' "attitude" rating led to a 0.5 percent increase in revenue, primarily via a huge increase in customer satisfaction.

High Engagement Means Lower Employee Turnover

In today's world of low job security for many positions, employees are desperately seeking that ideal workplace where their contributions are valued and where they feel they are making a positive impact. According to a study by the Corporate Leadership Council, highly engaged employees are almost 90 percent less likely to quit their jobs at any given point. Engaged employees also call in sick or are absent at about half of the rate of less engaged employees.

Money Becomes Less of a Motivator

Finally, you'll find that when you engage your employees they will find their work far more personally and professionally fulfilling. When an employee can leave work feeling satisfied with their performance and that they were part of a cohesive, trusted team they will be energized and ready to come in the next morning. Compare an engaged employee with a "clock puncher" who feels that their sole purpose in coming to work is to collect a paycheque; without question, you would rather have the engaged employee on your team.

As you can see, empowering and engaging your employees can be an excellent motivator and will lead to higher performance and improved customer loyalty. Investing in training and in helping your employees feel like they are stakeholders in your business will have a significant ROI – one that may end up taking your business to the next level.

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