While product quality, pricing strategies, and marketing efforts have traditionally taken centre stage, a new paradigm has emerged: the significance of employee experience.
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In the ever-evolving landscape of the retail industry, businesses are constantly seeking ways to stay competitive, attract customers, and boost their bottom line. While product quality, pricing strategies, and marketing efforts have traditionally taken centre stage, a new paradigm has emerged: the significance of employee experience.
Research found that 75% of customers are willing to spend more on retailers providing a good customer experience. When customers are happy, they not only tend to spend more but they are also inclined to share their positive experiences with other potential customers.
But here's a twist we've learned: both the employees' and customers' experiences work together to bring in revenue.
This article delves into the pivotal role of employee experience in retail and why it is so essential for sustainable success.
Retail is not just about products and services; it's about the human connection between employees and customers. The foundation of a successful retail operation lies in the quality of the interactions between employees and customers. These interactions can either drive sales, foster customer loyalty, and enhance brand reputation or put off potential buyers and harm the company's image.
Recent research shows that if employees aren't happy, they're more than 2.5 times likely to admit they can't provide top-notch customer service.
And guess what? About 64% of workers say that their own work experience directly affects how well they can help customers.
Employee experience is not a fleeting trend but a strategic imperative. It encompasses every facet of an employee's journey within a retail organisation, from the hiring process to daily work life and beyond. It includes factors such as workplace culture, training and development opportunities, compensation and benefits, and the overall work environment. Ignoring the importance of employee experience can have consequences for a retail business.
Employees who are engaged, and motivated are more likely to provide exceptional customer service. Happy employees tend to be more empathetic, and helpful, creating a positive shopping experience that customers appreciate and remember. On the flip side, dissatisfied employees can project negativity and frustration, leading to poor interactions with customers, potentially driving them away.
“Research by DecisionWise shows that companies with highly engaged employees experience 2x higher net income than companies with poor engagement scores”
High employee turnover is costly. Recruiting, hiring, and training new employees consume valuable time and resources. When employees feel valued and supported, they are more likely to stay with the company, reducing turnover rates and associated expenses.
“According to the Society for Human Resource Management (SHRM), it can cost a business between 50% to 60% of an employee's annual salary to find a replacement. This includes recruitment, training, and onboarding costs”.
Employees who feel their contributions are recognised and their opinions are valued are more likely to be engaged in their work. When employees are provided with the necessary tools, training, and a supportive work environment, they are more likely to perform their tasks with greater efficiency. This not only leads to smoother operations but also directly impacts customer interactions. Engaged employees are not only more productive but also more innovative.
The importance of employee experience in the retail sector cannot be overstated. It is not a luxury but a necessity for thriving in today's highly competitive market. Retailers must recognize that their employees are not just a cost in the machine but key stakeholders who can make or break the success of the business. Investing in employee experience is an investment in the future, one that pays dividends in the form of satisfied customers, reduced costs, increased productivity, and an enhanced brand reputation. In the retail world, a happy workforce is the cornerstone of success, and it is time for businesses to prioritise it accordingly.