4 Strategies to Enhance Employee Retention
One of the foremost goals of every company should be to increase retention of current customers and prospected future customers. In order to do so, many different things must be in place from top management to the front line employees. This involves things like: company culture, including honesty and integrity, good communication skills, communication with customers and potential customers, providing value, motivating employees, meeting customer needs, etc. Also, keeping the organization honest and objective leads to more effective and positive communication. Therefore, in order to increase retention, it is important to foster organizational values that increase trust and loyalty and which provide a solid foundation for an organization’s ability to deliver.
A key component in increasing customer retention is customer satisfaction. Satisfied customers are much more likely to return to a business and much more likely to remain loyal and stay with the organization. Therefore, increasing customer satisfaction leads to customer loyalty and understanding of the company and its values and will likely increase the likelihood of customers switching to the company in the future. In addition, satisfied customers are also much more likely to provide honest feedback to internal and external teams which impact organizational effectiveness.
A key component in customer retention is good follow up. It is very difficult to retain customers in the future. Thus, if a business wants to retain customers it must follow up on them. By tracking and assessing customer follow up efforts, leaders can determine how well they are doing at attracting, retaining, and encouraging customers. This data-driven marketing strategy can show managers real trends and areas for improvement. If these areas are ignored, then they will continue to deteriorate until the results are noticed.
Effective employee retention requires a good feedback system. When employees leave, there should be an opportunity for their replacements to provide information about how the former employee’s behaviors, job performance, and communication style impacted the customer experience. Managers should be able to measure how well these replacements are communicating with employees, providing positive feedback, and whether or not they are providing feedback that is consistent with the expectations of the new employees.
A second way to increase retention rates is to develop a customer loyalty program. Loyalty programs are a great way to increase customer retention because they provide a sense of value to customers and help employees to express their appreciation for the customer experience. However, a customer loyalty program is only effective if it motivates employees to come back and bring others back. If the program only brings people back once, then this approach is not truly motivating.
The third way to increase retention rates is to develop a competitive advantage. There are many ways to build a competitive edge. For example, developing new products or services, providing better service, attracting new employees, and sharing products and knowledge with others are all powerful competitive advantages. If the business has a solid customer retention strategy, these three elements will be more likely to be realized. This approach also tends to have the added benefit of helping to increase organizational profitability.
The fourth and final way to increase retention rates is to work on customer relationship management (CRM). CRM focuses on getting the customer to return to a business more than once. A successful CRM strategy also tends to create a more unified, customer-facing organization. If the customer relationship management strategy employed by the company is aligned with the business’s goals, then the increased customer retention rates are likely to be a real success.
As stated earlier, these four key strategies provide the basis for a successful employee retention strategy. When these four elements aren’t in place, however, an employee retention strategy will have little effect. Companies must remember that these strategies are intertwined with one another and that the results of any one element cannot be separated from the others. In order to provide a strong return on investment, all four components need to be strongly focused on. When this happens, the result is likely to be long term and significant.