The Importance of Employees in Customer Satisfaction & Retention | senshido.info
Employees will not enjoy coming to work or look forward to serving the customer unless they have a mutually beneficial relationship with the. If your employee engagement initiative doesn't include a focus on relationships in the workplace, odds are your initiative isn't working out very well for you. “Everyone talks about building a relationship with your customers. Employees First, Customers Second was the title of a book a few years back by CEO Vineet Nayar of HCL . 3 Forces That Are Shaping the Future of Work.
Small business owners in the service industry need employees who can inform customers when certain products are scheduled to be serviced. Examples include automobile service establishments such as those that do repairs, oil changes or install mufflers.
Focusing on Customer Needs Most small companies base their operations on meeting the needs of customers. Hence, they need employees who continually stay attuned to customers' changing tastes.
Employees, Customers, Surveys, and Business Success
For example, marketing experts conduct research to determine customers' needs, such as the features, styles, flavors, fragrances or sizes they desire. Database managers keep track of customer purchases so they can continue offering products customers want. Small businesses would lose out to competitors if they didn't have good employees constantly meeting the needs of customers. Considerations Small companies can ensure that their best employees continue building customer relationships by offering them incentives to do so.
One way to accomplish this is by tying bonuses to customer service and relationship building. For example, a sales manager might tie sales reps' bonuses to the amount of repeat business they generate. Business owners can also implement loyalty programs to keep all employees focused on building customer relationships. A loyalty program rewards customers for the frequency and dollar volume of the purchases.
Customers can earn free products or discounts the more they visit the business. Employees are then forced to deal with repeat customers and build a rapport with them. Small business owners may also consider using a customer-focused organizational structure to keep good employees focused on building customer relationships.
All we need to do is think about our own experiences to find examples of the importance of the relationship between employees and customers. Have you ever had a job you were very dissatisfied with? If so, how did it affect your attitude and your job performance? If you had direct contact with customers, how did it affect the way you interacted with them?
And as a customer have you ever interacted with an employee that obviously did not like their job? Not only can their nonverbal behavior let you know that they do not want to be doing their job, but sometimes they will tell you directly! The impact is largely determined by how well companies monitor and manage a number of areas pertaining to staff behavior.
The Relationship between Employees, Customers, and Business Success
I have even had people helping me in customer service tell me that they were in the process of looking for another job! Incidents like these do not give a customer a favorable impression of a business and certainly do not contribute in a positive way to intent to return. In fact, such employee revelations can make customers feel uncomfortable.
Psychologists tell us that this negative emotional state can become associated with your products or services and make the customer want to avoid them all together.
- Do Good Employees Build Customer Relationships?
- The relationship between employee welfare and customer satisfaction
- The Importance of Employees in Customer Satisfaction & Retention
However, Walter Greene, Gary Walls and Larry Schrest, in an article in the Journal of Services Marketing, state that organizations delivering high-quality service maintain or increase market share and they have a higher return on sales than do their competitors. So we know that employee and customer satisfaction are interrelated and that their behaviors affect each other and the financial performance of the organization.
Exactly how are they interrelated?
Do Good Employees Build Customer Relationships? | senshido.info
The root causes, also known as drivers, of employee behavior influence overall employee engagement. The root causes of customer satisfaction and willingness to recommend ultimately drive financial performance. Now, back to that crystal ball. Understanding the relationship between these variables is helpful. This is where science plays an indispensable role.
Keep in mind that it is best to start with your employees since their behavior and attitudes influence your customers. A scientifically sound survey instrument used conjunctively with state-of-the-art statistical techniques can enable you to identify a small number of drivers that are influencing the attitudes and behavior of your employees overall and more specifically, the root causes of their job satisfaction and their perceptions of management style and culture.
Improving employee perceptions of these root causes will have a positive influence on their behaviors and thus, you will see improvement in customer perceptions as well. To further improve customer relations and, of course, profits you must also survey your customers. As with employee surveys, customer surveys are invaluable if they are scientifically sound.
I am not referring to a 5-item questionnaire like the too brief instruments I have seen at many of the businesses I patronizebut rather I am referring to a comprehensive, carefully worded instrument designed to measure both obvious and subtle influences of customer behavior.
Organizational psychologists have specialized doctoral-level training in survey instrument design and are the best choice for this task.
The next part of the process is taking action on these root causes. Improving customer perceptions of the root causes will further increase their desire to continue doing business with your company.
This leads to increases in sales and profits.