image Employee Appreciation in 5 Easy Steps image The Impact Your Employees Have on Customer Satisfaction

Retain Your Employees, Retain Your Customers

Happier employees lead to happier customers. The link between making your employees happier and improving customer service may not be apparent at first, but take a second to think about it: Who is going to do their job better, a happy employee or a disengaged employee? Who is going to do a better job promoting your services to a potential customer, someone who truly believes in the goals of your business or someone who is simply clocking a 9-to-5 day?

Employees who feel engaged and fulfilled by their work create better business results, both on the customer-facing and backend sides of things. Happy employees will treat your customers better and be better representatives of your business. They’ll lead to greater customer retention and improve your bottom line.

Consider these facts:

  • According to the White House Office of Consumer Affairs, it’s six to seven times more expensive to gain a new customer than to keep an existing one.
  • A 2% increase in customer retention has the same fiscal effect as decreasing your costs by 10%. That means that investing in a more beneficial workplace culture for your employees can lead to greater profits if it generates customer retention (which it absolutely should).
  • 78% of consumers have abandoned a transaction because of a bad customer service experience according to American Express. Another 89% of customers say they have stopped doing business with a company because of bad customer service according to the RightNow Customer Experience Impact report. That means that no business can afford to have poor customer service, and in turn, no company can afford to have unhappy employees.
  • According to Defaqto Research, 55% of customers say they would pay extra to guarantee better service.

Clearly, customer service is an essential part of retaining customers and building your business. Make sure your customer service is at its highest level by looking first not to your customers but to your employees. Happier employees will solve your customer service issues for you by caring about the work that they do and the satisfaction that it brings them.

About Joy Ruhmann
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