Why is Employee Engagement Important for a Retail Company’s Success?

August 4, 2022

After a turbulent year in the workforce, we’ve all been talking about “employee engagement” even more than before. Is it a business trend, or is it something that we should explore? Just how important is employee engagement in retail customer service?

Here at Zipline, we think that employee engagement is crucial for every retail company to invest in. Engaged employees are the link between the innovative ideas your brand has created and the customers you’re trying to reach.

In order to understand the business value of engaged frontline workers, let’s break down the ways that employee engagement in the retail industry can benefit your company.

Engaged Employees Boost Productivity & Execution

With countless shopping options available, brick-and-mortar retailers need to perfect the in-person customer experience to stay competitive. And we know that customer experience is inextricably linked with the employee experience.

To reach customers, retailers should first focus on increasing engagement among their frontline store employees.

Studies tell us that only 29% of direction that is sent to stores from HQ is actually executed correctly. This is because most frontline workers haven’t been given the tools they need to be successful. This is why it is so important to connect what store employees need to know and what they need to do in a way that provides context and enables them to make better decisions.

The good news is that we built Zipline with a real understanding of the challenges that retail companies face. We know how important it is to cut the clutter and the noise so that your retail communications can drive employee accountability and empower flawless store execution.

Engaged Employees Increase Customer Satisfaction

It’s no question that boosting retail employee engagement ultimately improves the customer experience. By setting up your frontline workers for success, they will feel empowered to represent the brand and be the voice of the company.

With robust communication tools that provide context, your employees understand their role in accomplishing the greater mission at hand. We all know that when we understand how our job tasks, even the most mundane of duties, make us part of a bigger picture we are eager to go the extra mile and contribute our very best work. A platform that connects the dots for your people to create a sense of purpose and encourages discussion and feedback will improve the customer experience, ultimately reflected in your company’s bottom line.

It’s time to stop sending communications to stores through obsolete channels and start communicating directly with your people. Bringing a brand to life means aligning the people who make up an organization, from HQ to the storefront. Since employee happiness drives better store engagement, Zipline prioritizes people-first communication that promotes engagement throughout your team.

Employee Engagement Reduces Turnover

Keeping employees motivated and engaged is a top priority in any organization, but it’s especially important in retail, where turnover exceeds 60% (compared to 15% across the rest of the US!). This high turnover rate results in a huge loss in productivity and staggeringly high costs in recruiting, hiring, and training new workers. This disruption does more than hurt your business’ financials, it also impacts your customers’ shopping experiences.

If low employee turnover isn’t one of your Key Performance Indicators (KPIs) that you use to measure the success of your stores, it should be! Implementing tools for employee engagement and retention will not only increase customer satisfaction and boost sales, but will lower the time and money you invest in recruiting, training, and monitoring employee performance.

It is crucial to equip your employees with proper training, tools, and information to ensure they deliver excellent customer service, all the time. By implementing easy-to-use technology that tracks performance, engagement, and streamlines communication you can keep your employees happier and lower turnover.

An Engaged Workforce is a Healthy Workforce

Especially after a year of business amidst a panic, the retail industry is investing more than ever in people, the most important asset that you have in your stores. Investing in employee engagement means better store results, and the key lies in communication. Communication is critical, and the right communication impacts every level of your retail organization.

What’s more, is that we’ve had to learn the best way to communicate with our employees during a crisis. In order to keep your employees and customers safe and healthy as the world slowly reopens, it’s important to provide a single source of truth to your workforce.

Beyond keeping satisfied employees to maintain a successful business, your HQ has to listen to the front lines. Your engaged workforce is your best resource for understanding customer sentiment, so create a two-way feedback loop with your team members.

Zipline users collect feedback frequently with short surveys and groups, but the communication doesn’t end there. Once your leadership team considers employee opinions and manager input, it is important to circle back to their teams about how their insights have changed the course of the company or impacted business decisions.

Prioritize Employees’ Happiness Today

It’s no secret that the key to happy customers is happy employees. The data shows us time and time again that engaged employees boost shopper loyalty and customer satisfaction, resulting in increased store execution and company sales.

Zipline was built to solve the unique challenges of communication in retail organizations. The good news is that we’ve been in your shoes and we understand what it takes to start reaping the benefits of employee engagement. Reach out to learn more about how you can stop communicating with your stores and start communicating with your people today.

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