Apparently Barnes & Noble didn’t get the memo that committed employees are vital to any business’s success.
Yes, the book-seller saw their sales drop 6% during the 2017 holiday quarter. But firing employees who significantly contribute to customer satisfaction isn’t the answer. Especially when the retailer’s struggle to compete with Amazon means they have to deliver excellent in-store customer experiences every single time.
Unfortunately, retailers sometimes focus more on the cost of keeping their employees than what their employees can bring to their brand.
Are you one of them?
Loyal Employees = Loyal Customers
“Loyal customers and productive, loyal employees drive a company’s financial success,” states InMoment. This really isn’t brain surgery or rocket science. It just makes sense.”
InMoment, a company that specializes in customer experience optimization, points out that there is a growing body of research to support the link between employee loyalty, customer loyalty, and the future profits of the business.
A loyal employee will stay at his or her job longer because they genuinely enjoy it. Obviously, the longer an employee works for your company:
- the better they know and perform their job
- the more knowledge they gain about your products
- the better they get at recognizing and satisfying customer needs
Loyal employees mean turnover is reduced, and that leads to reduced costs and better customer experiences.
On the other side of the coin, satisfied customers typically become loyal customers over time. As your customers consistently receive satisfying experiences from your retail business, their trust increases, resulting in repeat business and brand advocacy. Furthermore, your profits per customer increase as they purchase additional products and services.
Earning repeat business saves you money in the long run because you’ll spend less time and resources to acquire new customers. Plus, your loyal customers will practically do your advertising for you!
Despite the continued research on the link between loyal employees and customer loyalty, many companies still don’t seem to comprehend the long-term value of such a relationship. Instead, they shell out money on advertising and promotions to attract new customers while neglecting good employees by pinching pennies on employee tools, training, and feedback.
When you understand the correlation between customer loyalty and employee commitment, you’ll have the knowledge you need to improve a key component of your business that will determine your financial success in the future.
Also published on Medium.