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How Employee Engagement Drives Customer Retention

January, 24 2020

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In terms of cost and time spent, trying to retain customers is far easier than trying to obtain new customers. Many companies turn to social media or feedback forms to drive customer retention, both of which can be helpful. However, a major key to customer retention is actually employee engagement. When your employees are out on a job or even talking on the phone with a customer, their level of engagement can go a long way in bolstering the company’s relationship with that customer. They are the main face and voice of your company, after all.

According to Sundaray in the European Journal of Business and Management, investing in employee engagement can reinforce the business context for employees. In fact, Sundaray notes that engaged employees work more with other colleagues to improve company performance just for the sake of the organization they work for. The tools and motivation that an engaged employee is equipped with can have a significant impact on the customer experience.

Here are five ways that bolstered employee engagement can drive customer retention.

 

Improves Organizational Efficiency

Being truly engaged with a company’s products and services means that an employee thoroughly understands the ins and outs of the business and their place in it. A higher level of engagement also involves your employees investing in practices and techniques that go above and beyond for the company. With this improved organizational productivity, employees can focus more on customer satisfaction.

 

Invested in the Company’s Success

When a business invests in an engagement program for its employees, it can cultivate a synergistic culture, meaning the employees feel invested in the company as well. If employees feel valued within a company, then they will be motivated to do great work not just for themselves but also on behalf of the company. When it comes to the customer experience, engaged employees will be motivated to foster a positive relationship that the company can benefit from.


Doing the Best Work with the Tools Provided

Without the training and education necessary to do their job, technicians and other service workers can’t be expected to perform well. That is why it is important to set your employees up for success by providing the tools and knowledge that will allow them to do their best work. Technology tools can facilitate exceptional customer service and maximize your employees’ potential for great work. Software that tracks employee satisfaction as well as customer satisfaction can help your company pinpoint the areas that need improvement. Whether it’s on an internal or external level, technology tools can significantly help improve your employees’ performances and boost customer retention.

 

Employee Retention

Companies that cultivate a sense of well-being and value for their employees are more likely to have higher employee retention rates. The more talented employees your company has, the more resources you have to allocate to each customer.

 

Adaptability and Problem Solving

Your employees can actually solve more problems when they feel more connected to the company’s values. Since they care about the company’s success, engaged employees will be motivated to find solutions when an issue arises on the job or with a customer. Good customer service depends on solving problems to improve the lives and experience of your customers.  

 

Increasing customer retention isn’t all that complicated as long as you understand where to start. Making sure your employees are able to do their best work and feel valued is the first step to retaining your customers. Without engaged employees, improving customer retention rates will grow increasingly difficult.

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