Want to Enhance Customer Retention? Reduce Employee Turnover
happy coworkers giving a group high five

How Employee Retention Improves Customer Loyalty

It’s no secret that customer retention is good for business. It’s essential to remain profitable and outpace the competition. If you’re not retaining your existing customers, it will be impossible to grow your organization.

Retaining your existing customers is more cost-effective than acquiring new ones. Nurturing leads and onboarding new customers can be a time-consuming process. But, your existing customers are more likely to refer business and spend more money. Just a 5% increase in customer retention can increase company revenue by up to 95%.

So, how can you go about retaining more customers? Many businesses don’t realize that employee satisfaction should be part of their customer retention strategy. By reducing employee churn, your company can create more brand advocates and increase lead generation.

At Radius Global Solutions, we specialize in driving customer retention at every level. Learn why keeping your current employees happy can help improve your customer loyalty efforts.



Reason 1: Happy employees deliver more positive customer experiences

Have you ever called a customer service line and been greeted with a bored, irritated voice on the other end? It’s off-putting, to say the least! If your employees are unhappy, your customers will be able to hear it in their tone of voice.

Even if you can’t see who you’re speaking to, you can still tell when they’re smiling vs. when they can’t wait to get off the phone. When employees keep their tones light and friendly, customers feel more at ease. Since customers cannot see your staff when they call, any judgments on their willingness to help will be based solely on how the employees speak.

Also, happy employees will be more eager to deliver amazing customer experiences. They might make an effort to strike up interesting conversations with your customers. These employees also may be more willing to go above and beyond when a customer has a complex problem.

All in all, satisfied employees are more invested in your company and its success. And invested staff members are more driven to create engaging, positive customer experiences.


Reason 2: Happy employees call out less

Employees who enjoy working for you are less likely to call out frequently. That means customers won’t be left frustrated when they can’t reach a member of your team. This is even more important for small businesses that only have one or two employees answering phones. If even half of your limited support staff calls out, your customers will struggle to get through to you.

Nobody likes waiting on hold for several minutes just to talk with someone. Ensure your customers have all the resources they need when they reach out. Keeping employees happy will reduce the risk of losing customers who are frustrated with long wait times.

But no matter how happy your employees are, you can’t control when they might need to call out. Avoid an understaffed customer service team with an outsourced customer service provider. Radius Global Solutions’ experienced support agents are available 24/7 to answer customer questions and facilitate efficient, positive experiences.


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Reason 3: Your customers will feel more connected to your brand

One of the best ways to retain your customers is to establish an emotional connection. That connection is built from speaking to your employees. When employees are retained, your customers will get used to talking to the same staff members on the other line. Your employees will become familiar with the customers who reach out most often.

These interactions are essential for building rapport and enhancing customer satisfaction. Customers who feel emotionally invested in your company are less likely to take their business elsewhere. Humans are averse to change by nature. If your customers like your team and the services you provide, then why deal with the hassle of finding a new provider?

Even if your organization makes a mistake or hikes up pricing, your customers will choose to stay more often if they genuinely enjoy working with you. Research from PWC shows that 86% of buyers are willing to pay more for a great customer experience (CX).

Making excellent CX a part of your business strategy could be the differentiator that makes a prospect choose you over the competition.


Reason 4: Low employee turnover looks good for business

When a company has a high turnover rate, it can create a lot of questions. Your customers may wonder if you’re not treating employees well. Or maybe you’re paying them less than the competition. These concerns can lead to doubts about your organization as a whole.

Now more than ever, consumers aren’t just looking for a brand that offers the product or service they need. They’re looking to do business with a brand that they believe in. One that aligns with their values and that they can trust.

Does your business have a low turnover rate with employees who stay with you for decades? It’s a good idea to showcase this on your website, social media, and company newsletter. Your customers will be impressed and feel encouraged that they’re working with a great organization.


Increase Customer Retention with an Outsourcing Partner

Is your employee attrition rate higher than where it should be? Are you struggling to keep your customers onboard? Building an employee retention strategy is your key to addressing both issues.

At Radius Global Solutions, our team has decades of experience fostering positive customer experiences and honing customer retention strategies. Contact us today to discuss how we can implement strategies that boost your bottom line.

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