Effect of employee engagement on customer loyalty?  

3 min read

Employee engagement means the employee is also engaged in the company’s goals and working towards them. They can prove to be your biggest advocates and help your company grow.   

According to a study by Hay Group, engaged employees can bring twice as much revenue to the company. It is easy to understand that employees who are interested in doing their job will be more productive than disengaged employees.   

In this article, we will learn how engaged employees will help build customer loyalty.   

Why is employee engagement important?   

Let us see in detail what the factors are that advocate employee engagement.  

1. Improved productivity   

The employee who feels fulfilled in his job will be more productive. Productivity also helps to stop the employees from getting distracted by other tasks that will help your company be more productive.   

These employees tend to help other employees with difficult tasks. This will help the other employees enhance their existing skills or develop completely new ones.   

2. Engaged employees are motivated.   

The employees who find their jobs fulfilling are not derived from any pay cheques rather, they are derived from making their tasks perfect.   

They walk the extra mile to complete their tasks and make them perfect.   

3. Improves retention   

When an employee is engaged and interested in the work, they are most likely to stay with the company for a longer time. It also prevents any negative words from being spread by former employees who were not engaged in their work.   

It also decreases absenteeism, which means your company can work at a better pace, which will benefit you.   

4. Improves profitability and revenue  

Engaging employees can directly impact the profitability of your business. According to a study, employees achieve twice the net income of an organization.   

Hence, improving the engagement among your employees has the potential to increase the business. It means you do not have to focus entirely on attracting new clients.   

How does employee engagement affect customer loyalty?  

The biggest organizational benefit is the loyalty of the customers. Let us further learn how employee engagement can affect customer loyalty.   

1. Engaged employees give a better experience to customers   

Engaged employees work to create an excellent experience for the customers. They will go the extra mile to ensure the customer is happy with the product and choose it for the business.   

These employees always set realistic expectations for their clients and do not mind spending time on the satisfaction of their customers.   

2. Engaged employees cater to a better brand experience  

Engaged employees are genuinely connected with the products they are selling. This helps them sell the product better. The brand trust and excitement will show in their voice while pitching the product. This will increase the audience’s trust in your brand.   

Customers are now seeking personalized experience and with an engaged employee it becomes easy to give that kind of experience to the audience. All customers want someone engaging and answering queries timely. This is the reason they will come back and shop for you.   

The employees will always be available for the customers and help them when required.   

3. Make your organization more customer-focused   

Engaged employees do not just meet the needs of the customers, rather they also take care of the customers. They take care of the relationship with their customers so they can establish better business bonds.   

They always put their customers in the center and this approach is called the customer-centric approach. It helps to win over customers more easily than other techniques.   

Customers will become loyal to you if they find you intend to help them and benefit them.   

What are the techniques you can use to increase employee engagement?   

Hence to give the best customer experience, you must provide your employee with excellent engagement. Here we will discuss the different techniques you can utilize to increase employee engagement.   

1. Clear Communication

Encourage open and transparent communication between management and employees. Regularly share updates, provide feedback, and actively listen to employee concerns and ideas.  

2. Recognition and Rewards

Recognize and appreciate employees’ efforts and achievements. Implement reward programs, both monetary and non-monetary, to acknowledge and incentivize outstanding performance.  

3. Professional Development

Offer opportunities for growth and development. Provide training programs, workshops, and mentorship initiatives to help employees enhance their skills and advance in their careers.  

4. Employee Empowerment

Involve employees in decision-making processes whenever possible. Give them autonomy and ownership over their work, allowing them to contribute their ideas and take on meaningful responsibilities.  

5. Work-Life Balance

Foster a healthy work-life balance by promoting flexible work arrangements, providing support for personal commitments, and encouraging employees to take breaks and vacations to avoid burnout.  

6. Employee Wellness

Prioritize employee well-being by offering wellness programs, access to health resources, and initiatives that promote physical and mental well-being. Show genuine concern for employees’ overall welfare.  

7. Team Building

Organize team-building activities and initiatives to foster positive relationships and a sense of camaraderie among employees. Encourage collaboration, cooperation, and mutual support within teams.  

8. Feedback and Performance Management

Establish a performance management system that includes regular feedback sessions, goal-setting, and constructive evaluations. Help employees understand their strengths and areas for improvement.  

9. Purpose and Values Alignment

Communicate the organization’s mission, vision, and values to employees. Connect their work to the larger purpose of the company, making them feel that they are contributing to something meaningful.  

10. Fun and Social Activities

Create opportunities for employees to bond and socialize in a relaxed environment. Organize team outings, celebrations, and other recreational activities to foster a positive and enjoyable workplace culture.  

Let’s wrap   

Customer satisfaction and employee engagement come in handy. So, make sure you are treating your employees fine and giving them proper training so they can face customers; questions.   

You can get help from LMS to engage your employees better. The LMS will help you provide live sessions, live chat, a unified resource repository, and an interactive interface. You can indulge your employees in activities like leaderboards, badges, or rewards for maximum participation.   

Yashika from Acadle

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