You may not realize how employee rewards can help customer retention. Yet evidence shows that happy and engaged employees help companies retain customers. Disengaged employees are less productive and optimistic, which can easily spill over into their interactions with customers. Satisfied employees, however, are more likely to try harder to please customers and drive better results. Employee rewards show how much the business values and appreciates its workers’ efforts. Employees love to receive rewards for their hard work, and that happiness feeds into customer interactions. In other words, employee rewards lead to better customer retention.
Customer retention means that you keep existing customers returning to your business, as opposed to attracting new customers. To successfully retain customers, it’s vital to make sure they have a positive experience with your product or service, as well as their interactions with your team members, to prevent them from taking their business to your competitors.
Although winning over new customers to your brand is important, it’s essential to keep the ones you already have satisfied. Evidence shows that it costs five times more to acquire new customers than to retain existing ones. Keeping customers will not only boost your return on investment, but it can even bring in more new customers. Satisfied customers become ambassadors for your brand and share their positive experiences with their friends and colleagues.
Evidence shows that employees who receive rewards for their efforts feel appreciated. In turn, this makes them feel more positive about their job and motivates them to work harder. For example, sales incentives that reward team members for hitting their goals can boost sales by between 6% and 9%. A well-structured sales incentive program increases employee performance by almost 45%.
As an added advantage, employee rewards make employees less likely to seek out alternative employment or go to a rival organization. It’s essential to remember that retaining skilled team members is just as crucial as keeping customers. You don’t want your business rivals to benefit from the training and expertise your staff has learned from you, and training new employees for your own team will cost additional time and money.
Employee rewards can even attract talent to the company. If you offer employee rewards above and beyond those your business rivals offer, their workforce may seek roles with you. You can profit from their existing experience and skills.
Strong customer relationships are the cornerstone of any successful company. Engaged employees are far more likely to have positive attitudes and therefore offer great customer service. In turn, strong customer relationships encourage customers to make repeat purchases and remain loyal to the brand. As a result, it makes sense to keep your employees satisfied, so they want to keep customers satisfied, too.
All companies want to establish and maintain a good reputation for their brands. A brand with a good reputation will likely have a loyal customer and employee base. Great brands can better expand their customer base and reach new and lucrative markets. Happy employees also want to boost their company’s reputation and have a personal interest in helping the brand do well. Engaged employees will also go the extra mile to create a good impression of your business. That will persuade customers to remain with your brand in the long term.
Workers who feel valued make customers feel valued, and customers who feel valued remain loyal to your brand. It stands to reason that finding ways to show employees your appreciation offers multiple benefits when it comes to customer retention.
Recent studies reveal that engaged workforces experience 41% fewer absences. Absences from sickness or other circumstances can disrupt everyday operations, especially when multiple team members are out, and customers can get neglected. If customers feel neglected, it may lead to a negative experience that will lead them to go to a rival brand. Therefore, using rewards to keep employees engaged in the workplace has many side benefits, including higher customer retention.
Employee rewards play a vital part in both staff and customer retention. However, there are many different options to choose from. Some of the most common include:
Another option is gift cards, which are a simple yet effective way to reward team members for their achievements. They come in a wide variety of categories and values to suit all needs. They are also easy to send, receive, and use. Rybbon offers an extensive catalog of digital gift cards, prepaid cards, and e-donations, which make ideal employee rewards to boost both team engagement and customer retention.
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