employee loyalty

We all know that employee loyalty is important, but oftentimes we forget how employee loyalty is connected with customer loyalty and how loyal employees contribute to the success of the entire business.

What Is Employee Loyalty?

Employee loyalty refers to the dedication, commitment, and allegiance exhibited by employees towards their organization, resulting in long-term engagement, productivity, and a willingness to go above and beyond in their work.

Why Is Employee Loyalty Important?

Employee loyalty is crucial in the workplace as it fosters a sense of stability, trust, and mutual benefit between employees and the organization. Loyal employees are more engaged, productive, and committed to achieving organizational goals. They contribute to a positive work culture, enhance team collaboration, and are less likely to seek opportunities elsewhere, reducing turnover costs. Moreover, loyal employees become brand advocates, attracting top talent and positively influencing the organization’s reputation and success.

How Leadership Impacts Employee Loyalty

There is a strong relationship between employee satisfaction and employee loyalty. There is also a strong connection between employee loyalty and customer loyalty and, ultimately, profitability. So what is the secret to fostering employee loyalty and preventing employee turnover? Effective leadership.

A staggering 79% of employees who decide to part ways with an organization cite a lack of appreciation as their primary reason for departure. This emphasizes the pivotal role leadership plays in acknowledging and valuing the contributions of its workforce. When employees feel seen, recognized, and appreciated, it fosters a sense of belonging and loyalty that transcends beyond mere job satisfaction.

Leaders who make a concerted effort to express gratitude and recognize the efforts of their team not only boost morale but also contribute significantly to the establishment of a loyal and committed workforce. Regular acknowledgment of achievements, both big and small, builds a positive work culture where employees feel their contributions are integral to the success of the organization.

Investing in Employee Development

Equally noteworthy is that a substantial 94% of employees express a willingness to stay with a company that actively invests in their professional development. This statistic underscores the importance of leadership in shaping a workplace environment that not only recognizes the potential of its employees but actively seeks to enhance and nurture their skills.

Effective leaders understand that supporting employee growth is a two-fold benefit. It not only equips the workforce with the tools needed for personal and professional advancement but also demonstrates a commitment to their long-term success. This commitment, in turn, fosters a deep sense of loyalty among employees, as they perceive their employer as a partner in their career journey.

Factors That Influence Employee Loyalty

  • Organizational culture and values
  • Leadership and management practices
  • Career development and growth opportunities
  • Recognition and rewards programs
  • Work-life balance initiatives
  • Employee well-being and support

8 Tips for Fostering Employee Loyalty

These tips, which are drawn largely from the experience of customer service reps (CSRs), are meant to serve as a comprehensive guide for organizations seeking to not only retain their valuable workforce but to cultivate a workplace environment where loyalty is not just an expectation but a natural outcome of thoughtful leadership and employee-centric practices.

1. Cultivate a Culture of Appreciation

Showcasing gratitude and recognizing the contributions of employees is foundational to building loyalty. Regularly acknowledge individual and team achievements, whether through formal recognition programs, team meetings, or personalized messages. A culture of appreciation makes employees feel valued and integral to the organization’s success.

2. Ensure Effective Onboarding

Investing in a thorough and effective onboarding process significantly influences how long an employee remains with the company. A well-structured onboarding program goes beyond introducing new hires to the basics; it immerses them in the organizational culture, values, and expectations. Clear communication about roles, responsibilities, and the broader mission of the company during the onboarding phase sets a positive tone for the employee’s journey.

3. Invest in Professional Development

Demonstrate a commitment to the growth and advancement of your employees by investing in ongoing training and development opportunities. This not only enhances their skills but also communicates that the organization is dedicated to their long-term success. Employee loyalty often flourishes when individuals see their careers evolving within the company.

4. Provide a Clear Path for Career Progression

Outline transparent career paths and advancement opportunities within the organization. When employees can see a future where their contributions lead to meaningful career progression, they are more likely to stay committed. Regularly communicate about potential career trajectories and provide guidance on skill development aligned with organizational goals.

5. Foster Open and Transparent Communication

Create an environment where communication flows freely between leadership and employees. Address concerns promptly, provide constructive feedback, and encourage an open dialogue. Transparent communication builds trust, a crucial element in fostering loyalty, as employees feel informed and included in the decision-making process.

6. Offer Work-Life Balance Initiatives

Recognize the importance of work-life balance and implement initiatives that support it. Flexible work hours, remote work options, and policies that respect personal time contribute to employee satisfaction. By promoting a healthy work-life balance, organizations not only enhance loyalty but also contribute to employee well-being and overall job satisfaction.

7. Recognize and Address Burnout

Proactively identify signs of burnout and implement strategies to mitigate its impact. Burnout can erode loyalty and productivity. Encourage employees to take breaks, use their vacation time, and establish boundaries. Implement wellness programs and provide resources to manage stress. Addressing burnout demonstrates a commitment to the health and happiness of your workforce.

8. Offer Perks and Incentives

Provide enticing perks and incentives that go beyond standard compensation. This could include wellness programs, travel discounts, recognition events, or even unique benefits tailored to your workforce. Such offerings not only enhance the overall employee experience but also contribute to a positive and loyal work environment.

Remember, these tips are interconnected, and implementing them collectively can create a robust foundation for fostering lasting employee loyalty. Tailor these strategies to fit the unique dynamics of your organization, and consistently reassess and adapt them as your workforce evolves.

Fostering Loyalty with An Employee Loyalty Program

In the pursuit of fostering a workplace culture that prioritizes employee satisfaction and longevity, organizations are increasingly turning to Employee Loyalty Programs. These initiatives go beyond traditional employee recognition strategies, offering a structured framework designed to acknowledge, reward, and retain valuable talent. Let’s explore the compelling benefits of implementing such programs and highlight some noteworthy examples.

Benefits of Employee Loyalty Programs

Employee loyalty programs can have numerous benefits that range from increased engagement to completely changing company culture. 

Enhanced Employee Engagement

Employee Loyalty Programs serve as catalysts for heightened engagement. By recognizing and rewarding employees for their contributions, these programs instill a sense of pride and ownership, fostering a positive and motivated workforce.

Increased Retention Rates

Retaining skilled and experienced employees is a perpetual challenge for many organizations. Loyalty programs create a bond between the employee and the company, reducing turnover rates and the associated costs of recruitment and training.

Boosted Morale and Job Satisfaction

Acknowledgment and rewards contribute significantly to job satisfaction. Loyalty programs elevate morale by demonstrating that the organization values the efforts and dedication of its workforce, resulting in a more content and committed team.

Improved Productivity and Performance

Motivated employees are more likely to go above and beyond in their roles. Loyalty programs act as incentives, inspiring employees to excel in their responsibilities and contribute actively to the overall success of the organization.

Positive Impact on Company Culture

A well-designed loyalty program becomes an integral part of the company culture, emphasizing the importance of loyalty, collaboration, and mutual appreciation. This cultural shift promotes a harmonious work environment and strengthens the employer-employee relationship.

Employee Loyalty Program Examples

Employee loyalty programs can take many forms. Depending on the purpose and structure of your organization, there are many different types of programs that you might find success with. 

Recognition and Rewards Platform

Many companies utilize online platforms that allow peers and managers to publicly recognize and reward employees for their achievements. These platforms often offer a variety of rewards, such as gift cards, vouchers, or even personalized experiences.

Professional Development Opportunities

Some loyalty programs focus on the long-term growth of employees by providing access to training programs, workshops, and certifications. Investing in the professional development of employees not only enhances their skills but also reinforces their commitment to the organization.

Flexible Work Arrangements

Recognizing the evolving needs of the workforce, some loyalty programs offer flexibility in work arrangements, such as remote work options, flexible hours, or compressed workweeks. These initiatives demonstrate an understanding of work-life balance and contribute to employee satisfaction.

Wellness Programs

Employee well-being is a key aspect of loyalty programs. Organizations may offer wellness programs that include gym memberships, health screenings, mental health resources, or even on-site fitness facilities. Prioritizing employee health contributes to a positive and caring workplace culture.

Service Milestone Celebrations

Recognizing employees for their long-term commitment through service milestone celebrations is a classic loyalty program approach. This can involve personalized gifts, public acknowledgments, or special events to commemorate significant anniversaries with the company.

Employee loyalty programs represent a strategic investment in the overall success and sustainability of an organization. By implementing these programs, companies not only retain valuable talent but also create a workplace where dedication, engagement, and mutual appreciation thrive.

Increase Your Employee Loyalty with InMoment

InMoment client alphaborder was able to increase their employee loyalty by 10% year-over-year utilizing tools such as Moments. Your organization can see similar success. Schedule a demo to see how we can help you increase your employee loyalty!

References 

The Hill. Only 21% of U.S. Employees Trust The Leadership At Work (https://thehill.com/lobbying/4001575-only-21-of-u-s-employees-trust-the-leadership-at-work/) Access 12/4/23.

Zippia. 20+ VITAL EMPLOYEE LOYALTY STATISTICS [2023]: ENGAGEMENT TRENDS + DATA (https://www.zippia.com/advice/employee-loyalty-statistics/) Access 12/5/23.

Stress Awareness Month

Did you know that April is Stress Awareness Month? Merriam-Webster defines stress as “a physical, chemical, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.” And looking at the world around us, there are many elements that could lead to immense feelings of stress. 

Rather than rattling off a list of possible stressors, we want to talk about how you and your employees can manage these feelings year round with practical, accessible tools and coping strategies. So without further ado, let’s get zen!

3 Tools to Share with Employees for Stress Awareness Month

Tool #1: Leverage Company Mental Health Resources

Mental health is just as important and physical health. And just as they provide medical benefits to help provide for their physical health, many businesses today are also making mental health resources available to employees.

If you are on your company’s human resources team, it might be worth reiterating available resources to your employees via email or your company’s internal communications channels (especially since it’s Stress Awareness Month). This communication should also feature clear instructions on how to access those resources to increase accessibility. Having those resources is only helpful if your employees are aware of and using them!

Tool #2: Create Space with Meditation

Stress can create feelings of helplessness, decrease ability to focus, and stir up racing, negative thoughts. To combat this, encourage employees to create mental space with meditation. 

Meditation will look different for everyone, but the goal is to “focus your attention and eliminate the stream of jumbled thoughts that may be crowding your mind and causing stress.” One common method is to sit quietly and focus solely on your breath for at least two minutes. If you get distracted, that’s okay! Just refocus your attention on your breath.

There are also apps and websites that provide guided meditations and tools to help achieve a meditative state. At InMoment, we provide our team members with access to an app called Sanvello, a mental health app that supports people through self care, peer support, coaching, and therapy. One of the tools available on Sanvello is guided meditations.

“We are so happy to give our InMoment Team access to Sanvello, a mental health app that focuses on the importance of checking in with yourself,” said an InMoment HR representative. “Employees will be able to leverage the app to access self care tools like daily mood tracking, guided journeys, coping tools like meditation, and more to help them manage stress in a world full of noise. This is a wonderful step to support our team both inside and outside of the workplace.”

In addition to apps like Sanvello, you can also find free guided meditations on Youtube and other sites. These resources can be communicated via the same method we mentioned in tool number one.

Tool #3: Plan for Moments That Matter

At InMoment, we have this saying: “Own the Moments That Matter.” And though this is applicable for improving experiences for customers and employees, we also mean that it’s important to really be present in the moments that matter most to you personally. 

We each have our own “moments that matter,” whether it’s going on a walk with our dog, taking an exercise class, spending quality time with our family and friends… the list goes on! In these stressful times, it’s more important than ever that we are deliberate about setting time aside for the things that make us feel our best. 

At the beginning of each week, set aside time in your schedule to do something for yourself, and encourage your employees to do that too! It can be something as simple as taking 20 minutes to get up from your desk to stretch, or you could even utilize your paid time off to have an extended weekend. Whatever it is, we each need to take the time to create (and own) our own moments that matter.

Encouraging a Self-Care Culture

It’s simple: companies are most successful when their employees are successful—and this stretches beyond professional success. To be their best at work, employees need to know that their employers encourage them to do what they need to in order to thrive. That means companies must clearly communicate about mental health resources and provide the tools necessary to assist their employees year round—not only during Stress Awareness Month. Doing so clearly displays employee commitment, and will lead to cultural and business success long term.

What is employee commitment? And how can brands demonstrate that? Learn all about it from InMoment employee experience experts here.

How Employee Churn Costs You Money

Employee Churn

It turns out that your greatest asset in your efforts to create an excellent customer experience (CX) can actually be one of your greatest costs. What are we talking about? Your employees, of course! And, more specifically, employee churn.

Employees make or break the customer experience, and if they are not satisfied in their position, they can cost you money by negatively impacting customer experiences—or by packing up their bags and going elsewhere.

What Are the Effects of Employee Churn?

Employee churn is complicated. There are so many reasons why employees may choose to leave, whether it’s personal circumstances, career opportunities, or just a negative employee experience. 

There are also many different effects to consider when you lose an employee, both tangible and intangible.  When you lose an employee:

You Lose:

  • Existing Customer Relationships: When you lose a customer-facing employee like a salesperson or an account manager, you can also lose their contacts and relationships. Take the example of an auto dealership. Some customers come back again to the same sales person because they have an excellent relationship and know that the experience they receive will be just as excellent. These customers will likely follow that sales person to their next dealership should they decide to move on.
  • Employee Knowledge and Expertise: We all have been new on the job—and so we all know how difficult and lengthy the onboarding process can be. When employees that have become acclimated to your company and their roles leave, then you lose all the knowledge and expertise those employees have gained. And, you’ll need to start fresh with new employees. Additionally, you remaining employees will miss out on the mentorship of more tenured employees.

You Take on:

  • Cost to Recruit and Replace: We bridged this subject in the previous section, but losing experienced employees means starting over. And in this economy, finding new employees is much more difficult than it has been in the past. When actively searching to fill a position, you can accrue recruiting costs from promoting your posting on job sites or from using recruiting agencies.
  • Cost to Train and Develop Knowledge: Recruiting new employees is only the beginning of the costs. Once you’ve signed a contract, then the training begins. Check out the next section to discover how much that can truly add up to!

How Do You Calculate the Cost of Employee Churn?

Now that we’ve laid out how losing employees can cost you, it’s time to calculate that cost down to dollars and cents. Here is a quick equation you can use to add up the exact cost of training employees for your brand:

Sounds like a lot, right? It is! In fact, turnover can cost a company about 33% of an employee’s annual salary, according to Employee Benefits News.

How Employee Experience Programs Reduce Employee Churn (and More!)

When you focus your experience programs on making employees feel heard, removing friction from their everyday lives, and making them feel engaged and inspired by their job, you are investing in keeping employees around. And when you reduce churn, you reduce churn costs!

Here are just a few of the ways employee experience programs can benefit your business:

  • Retain Top Talent: When you identify barriers that undermine the employee experience, understand  why people leave and recover at-risk employees. 
  • Retain Customers: 68% of customers will leave because of poor employee attitude.
  • Boost Brand Perception: 70% of customer brand perception is determined by experience with people.
  • Encourage Cross-Sell and Upsell: 41% of customers are more loyal when they interact with employees with positive attitudes.
  • Decrease Cost to Serve: Higher-quality experiences mean fewer calls to customer care and a subsequent reduction in call center costs.
  • Increased Profitability: Engage and empower employees to take ownership of profitable CX outcomes. Companies with engaged employees are 21% more profitable.

Want to learn more about how you can boost employee engagement and your bottom line? Check out this free eBook!

EXCXBrand

Organizations around the world are actively evaluating—and seeking to better understand—the decision-making and behavioral influence of employee and customer trust, the drivers of emotional bonding with a brand or company, and what is required to create and sustain a more valuable branded experience.

If these topics are on your company’s radar, you can get the answers you need here! In today’s post InMoment EX and EX-CX linkage expert Michael Lowenstein is sharing his thought-leading insights on just those subjects. Check out these must-read articles!

Top Articles on EX, Linking EX & CX, and Branded Experience

#1: The Future Role of Consumer Trust 

Stakeholder (customer and employee) trust is about performance consistency and reliability, active 360 degree communication, and emotional security on an individual level, and humanized processes which lead to desired outcomes. It’s based on perception of personal value delivery relative to expectations. Like a bank or investment account, employee and customer trust is earned; and it can build, or decline, over time as the totality of experience unfolds.

Learn more here!

#2: Trust as an Emotion  

Trust is considered to be a “feeder” emotion, actively contributing to an overall perception of experience value, which, to help assure success, must become part of how organizations design experiences for both customers and employees. It is evident in both b2b and b2c products and services, everywhere around the globe. In some industries, such as financial services, trust has particular importance, especially concerning brand image and optimized relationships.. 

Read the full article here!  

#3:  The Customer Behavior Consequences of Low and High Employee Trust

A high percentage of U.S. employees simply don’t trust their employer.  This has a direct impact on employees’ perceptions and behavior, on their level of commitment to the company and also its customers.  There are progressive organizations, such as Zappos, that focus on mutual trust between employer and employee.  At very high levels, trust can help produce a corps of employee advocates (aka ambassadors in the post), making them active, contributing partners in a shared destiny with their employer.

Get the full article 

#4:  What if Employees Don’t Support Brand and CX Initiatives? 

As organizations design brand and customer experience initiatives and programs, there is often tacit belief that employees will indirectly and directly support such efforts.  It has frequently been demonstrated, however, that neutral or uncommitted employees can withhold their support and/or participation, even being negative in this regard.  Without multi-level employee commitment (to the organization, its product/service value proposition, and its customers) these programs can be in jeopardy of not meeting business outcome goals

Learn more here!  

#5:  The Positive and Negative Emotions of Employees and Customers 

Going beyond traditional quality-related and tangible aspects of value to behavioral drivers, there are 20 stakeholder experience-related emotions, which can be applied to deeper understanding of decision dynamics.  Eight of the emotions are negative (stressed, frustrated, unhappy, etc.) and twelve are positive (safe, trusting, energetic, etc.).  At the pinnacle of positive emotions are ‘happy’ and ‘pleased’, and this can be expressed in experience through the concept of lagniappe, essentially purposeful overdelivery of value.

Read more 

#6:  Emotional Drivers Shared by Employees and Customers  

Getting at the “feelings”, drivers of underlying customer and employee emotions, has seen growing importance.  Though this has been slower to develop on the employee side, changes in consumer and marketing dynamics have resulted in significantly increased focus on how emotions shape, and are shaped by, experience.  For both groups of stakeholders, the key priorities are to create, support, and leverage trust and value, through several techniques:  transparent and frequent communication, understanding of behavioral influences, etc.

Tell me more 

#7:  The Importance of Brand Image in Shaping Perceived Value and CX 

Corporate and brand image is a key, though less studied, element of perceived stakeholder value and overall experience.  Research has demonstrated, for example, the strong correlation of brand and product reputation through online reviews and resultant sales.  On the employee side, this impacts recruitment and retention.  For both customers and employees, there is also evidence of downside performance due to impaired or poor reputation.  Proactive organizations, understanding this, have taken an array of steps to protect image and reputation.

Read the article 

#8:  Creating Emotional Value for Customers and Employees

Many companies have tactically elected to apply traditional engagement approaches in the belief that these will enhance employee and customer behavior.  However, more progressive and advanced organizations have learned that stronger value and business outcomes, for both stakeholder groups, are realized by creating emotionally-based commitment and advocacy behavior.  The proof is that the most successful organizations reach higher levels of perceived value, performance, and financial results through such contemporary means.

Learn more! 

#9:  Customer Bonding and the Branded Experience 

There are organizations, such as IKEA, for example, where the experiences created for customers are meant to be personally bonding and immersive – through product design, employee interaction, and the overall store visit.  It is, in effect, a ‘branded customer experience’, distinctive and unique to this retailer.  Examples are offered of B2B and B2C companies that have transcended from transactional, commoditized experiences and now offer branded differentiation with higher perceived value—for both employees and customers.

Get the article

Frontline employees

Metrics, metrics, metrics. It’s common for frontline employees like contact center agents to be inundated with them—schedule adherence, efficiency, handle time, and hopefully, amid all of that and more, customer experience (CX) metrics. Ostensibly, the goal with this information is to give contact center agents the guidance needed to create Experience Improvement (XI) for customers, but do they have the time and wherewithal to actually sort through comments and data? Should that even BE an organizational expectation?

Having plenty of data and feedback is certainly important, but inundating your contact center agents with it won’t make them better at their jobs. Today’s conversation briefly covers how to actually leverage data by being tactical and thoughtful with what you share with your frontline employees. We’ll also discuss how best to use data to recognize employees for excelling at the executing moments that matter to customers. Let’s get started!

Sharing What Matters with Frontline Employees

There’s no one specific type of information, insight, or data that supports frontline employees across all industries, but there are several high-level principles that brands can bear in mind when determining what those employees need to know. The first north star to aim for with sharing insights to frontline employees is to consider which of those insights will make your employees not just efficient, but actually better at their jobs and at creating Experience Improvement.

Organizations that make compliance and efficiency the high water mark for contact center excellence will not see remarkable agent performance, let alone the Experience Improvement that you need to acquire and retain customers. Finding the insights, data, and comments that will make employees better at their jobs begins with using an Experience Improvement platform to ingest data (especially customer comments) for actionable insights. Many brands end up wasting time by either trying to manually mine insights out of data mountains, or by gathering metrics and then quitting at that point because they think numbers alone can drive success.

The platform approach can help you avoid both of these pitfalls and make the most of all your data—both qualitative and quantitative. Finding relevant and actionable insights in your data will motivate your employees to act upon Experience Improvement opportunities. Enacting this approach will also enable your frontline employees to provide a far superior experience to customers. This strengthens brand connection and creates a customer-centric culture.

The Next Step

Giving your employees the tools to create Experience Improvement is one thing—demonstrating your appreciation for them successfully doing so is another. All of us—frontline agents, supervisors, and business leaders—can take advantage of data and insights that allow us to simply “be better.” However, there’s one more step on that road that is specifically applicable to driving to top-level frontline work: recognition. 

This is another area in which brands and experience program vendors underutilize  data, unstructured and otherwise. Data is great for strengthening experiences and the bottom line, but with the right plan and structure, it can drive another factor just as if not more fundamental: an employee-centric culture.

Many brands use data to measure employee performance as a matter of course, but  tracking something only accomplishes so much. Brands need to go beyond tracking—they must use data to celebrate success, continually create a positive culture, and recognize a job well done.

This is a fundamental component of being human in all of your experiences, and employees who feel both recognized and a part of the company’s success will be all the more effective in their roles. That is the heart of Experience Improvement, creating a customer-centric and employee-centric workplace, and identifying the moments that matter.

The Frontline Insights Universe

While we’ve covered a lot of ground in discussing how to improve and recognize frontline employee performance, there’s a lot more you can find by checking out my full-length point of view article here. I take a deeper dive into communicating insights to frontline employees, as well as additional strategies you can use to improve experiences for customers, employees, and your wider organization!

Customer Aggression in the Workplace and how it impacts the employee experince

We know that everyone is sick of talking about COVID, but the pandemic has had far-reaching effects on customer experience (CX) and employee experience (EX) that will persist long after the virus is finally contained. Staying on top of these effects is hugely important to continuous Experience Improvement (XI), which is why today we want to take you through one of the biggest elements we noticed in our recent experience trends report: customer aggression in the workplace.

Even if aggressive customers haven’t been a problem for your brand specifically, you’ve no doubt heard all the horror stories about employees and brands for whom they have been. The problem has become widespread enough that it’s changed many employees’ workplace expectations, and it’s in that context that we all need to consider a few questions. Why has this become so much more common, and how has that problem changed employee experience?

The Roots of Heightened Customer Aggression

Figuring out how best to respond to aggressive customers begins with finding out why this problem is ramping up to begin with. The answer probably won’t surprise you: the pandemic has been, to put it lightly, an extremely stressful time. Our research and that of many other organizations have found a direct correlation between that stress and the customer aggression we’re seeing in workplaces around the world.

As you might expect, this aggression has resulted in big changes when it comes to employee expectations. Whether it’s diffusing unruly airline passengers or a fight over Pokemon cards (not even kidding), many employees are experiencing enforcement fatigue from attempting to uphold COVID regulations in the face of hostile customers. As a result, many employees are expecting brands to make some pretty big changes in the post-pandemic era.

How Customers and Employees View This Problem

Another factor critical to addressing aggressive customers is understanding how experience stakeholders view the problem. That was another element to all of this that we closely researched, evaluating both customers and employees across a few different demographics. What these folks had to say might surprise you!

For example, when asked “what would you think if you witnessed a customer acting aggressively toward an employee at a place of business?” only 48% of customers said they’d perceive that behavior negatively. 6% of customers would develop a negative perception of the employee and the brand. Finally, when we looked at this data against a more generational backdrop, it became clear immediately that Generation Z shoppers would be the most likely to feel empathetic toward the employee.

Impact of Customer Aggression on Employee Experience and Brand Perception
Image #1: Customer responses to the question,“What would you think if you witnessed a customer acting aggressively toward an employee at a place of business?”

To be clear, this question was asked under the assumption that the employee remained calm while the customer was being aggressive. But what happens when we change the scenario to both parties being aggressive toward each other? With that change thrown into the mix, 24% of customers had a negative perception of all customer behavior, Generation Z shoppers became less empathetic toward the employee, and negative sentiment toward the brand among all customers skyrocketed from 6% to a whopping 35%.

Customer Aggression and Employee Aggression
Image #2: Responses if the employee was aggressive in return

Clearly, mutually assured aggression isn’t the solution. What is

Employee Commitment 

The conventional wisdom for a lot of brands here is to closely support employees as incidents like these occur. That’s certainly important, but as The Great Resignation is demonstrating, strictly reactive support is insufficient for employee Experience Improvement (XI).

The answer, then, is for brands to dig much deeper in their employee support, going from reactive employee advocacy to something more fundamental and progressive: employee commitment. You can achieve employee commitment by working hard to drive trust, transparency, and communication, with the end goal being to help employees feel a human, emotional connection to their work. Taking this proactive tack with your employees won’t ‘just’ empower them to deal with aggressive customers; it will help your organization retain talent amid all this unprecedented churn.

Defining how exactly to go about employee commitment is going to look different from company to company. The work isn’t easy and can take some initial time, especially as you identify the end goals your commitment initiative needs to fulfill and then design that program around them. But that guiding ethos of trust, transparency, and communication makes a world of difference for employees who are feeling fatigued from aggressive customers. It’s an approach that will make them feel truly supported instead of just patronized, which will inspire them to handle these situations gracefully and create Experience Improvement for themselves.

Understanding and dealing with customer aggression is extremely important, but there’s a lot more to this experience universe for brands to consider. Want to learn more about the trends we’re seeing amid employees and customers in 2022? Click here to read our full-length trends report for this year, where we take a deep dive into everything brands need to know for their experience initiatives!

How to Grow Employee Experience Maturity

This article was originally posted on CustomerThink.com

Sacagawea, a knowledgeable young Shoshone woman, successfully guided Lewis & Clark through the Louisiana Purchase territory, all the way to the Pacific Ocean. Tenzing Norgay, a Sherpa, whose backyard was the Himalayas, successfully guided Edmund Hillary on the first successful ascent of Mount Everest. Ports around the world have skilled and experienced pilots whose detailed knowledge and map-memory of local shoals, sandbars and currents is essential to guide arriving ships to their berths. 

In the modern era, Tim Berners-Lee was the trailblazer of computer science—the inventor and mapmaker of the World Wide Web and HTML—without whom we simply wouldn’t have the internet of today. And then there’s Steve Wozniak, the technical pathfinder behind the initial system for Apple products and services. Every successful journey greatly benefits from having a reliable, capable, amply proven guide, especially one using a detailed, user-friendly map with signposts to mark steps needed to reach the intended goal. It is as true with employee experience (EX) improvement. There is a clear path to greater employee experience maturity and employee insights success, with a map and signposts to aid the guide.

4 Signposts on the Employee Experience Maturity Path Map 

There are four distinctive signposts which serve as a guide up the employee experience maturity path, each one bringing organizations closer to their goal of optimal employee behavior and value as enterprise assets. These signposts, or markers, represent the points along the path, or the trajectory, employee experience has taken, as companies become more mature in a) how they consider employee contribution, in other words the importance attached to it, and b) what role, or roles, employees have in enterprise culture, strategy, and business outcomes.

#1: Employee Satisfaction

The enterprise EX improvement and insights journey path often begins with very basic employee satisfaction, as companies are principally looking to manage and measure behavior at a macro level. For the employee experience maturity trajectory, it is the point of embarkation. Employee satisfaction will typically include job-related factors like compensation, workload, perceptions of management and leadership, flexibility, teamwork, resource availability, etc. 

#2: Employee Engagement

The next, and first real, EX journey signpost brings many organizations to employee engagement. Engaged employees have a stronger sense of purpose within the organization. Here, the predominant, HR-formed, construct is to consider employees as costs of doing the company’s business, and the overall objective is for their fit, utility, and productivity within the enterprise.

#3: Employee Commitment

This signpost represents and recognizes arrival on the path of a deeper awareness of what creates and shapes the full EX landscape: employee commitment to the organization, to its product and service value proposition ,and customers – and plan to optimize business outcomes and stakeholder value. Part of this more progressive awareness is also understanding, and mitigating, things which can impede EX success. Employee fit, utility, and productivity are certainly important, but they are insufficient where real employee experience and linkage to customer value delivery are concerned. Organizations need to have more contemporary and actionable insight into what motivates employees, connects them to the culture and customers, and drives their behavior as invested, highly contributory enterprise assets. 

#4: Employee Advocacy

This signpost has the EX parallel of the flag planted at the top of a mountain peak. Few organizations are able to reach this terminus point on the path (although it is certainly within reach, with strategic focus and discipline, for virtually any company). Companies with high rates of employee advocacy, and its accompanying strong set of business outcomes, are those which have embedded commitment and customer focus into the enterprise DNA, and where the culture, operations, and processes all flow through stakeholder value creation. 

How Does EX Improvement Impact Customer Behavior?

In looking at the progression from satisfaction to engagement to commitment and advocacy, we have examined research conducted over the past three decades. What we have observed are studies that examined some contributing factors of employee experience and value, such as reward and recognition, job fit, training, career opportunities, work environment, and departmental and management relationships. But the critical component often totally missing, or lightly addressed, from all of this material is the definitive linkage and commitment to customers.

Tony Hsieh, the late founder and CEO of Zappos, said: “The brand is just a lagging indicator of the company’s culture.” He hit the mark with that statement. Brand image needs to be complemented and supported by a culture and set of processes dedicated to both employee and customer experience. That brand promise has to be delivered for customers every time they interact with the company. Contribution to customer experience also needs to be fully, and strategically, baked into the organization and into every employee’s job description.

Consider how frequently your customers come in contact with your employees, either directly or indirectly. Whether it is through a computer screen in a customer service chat, on the telephone, or in person, every employee, whether customer-facing or not, should be an enthusiastic and committed representative for the brand. If, today, employee satisfaction and employee engagement are not designed to meet this critical objective of the customer experience, almost inevitably there will be a sub-optimal downstream result with regard to customer behavior.

The Importance of Creating a Culture of Commitment

In any group of employees, irrespective of whether it’s a service department, technical and operational division, or a branch office, there will be differing levels of commitment to the employer’s brand and the company itself, its value proposition, and its customers. If employees are negative to the point of undermining, and even sabotaging, customer experience value, they will actively work against business goals and outcomes. However, if employees are advocates, and whether they interact with customers directly, indirectly, or even not at all, they will better service and support customers.

For companies to create and sustain higher levels of employee advocacy, it’s also essential that the employee experience be given as much emphasis as the customer experience. If employee commitment and advocacy are to flourish, there must be value, and a sense of shared purpose, for the employee (as well as the company and customer) – in the form of recognition, reward(financial and training), and career opportunities. Combined with advanced analytics and other employee-related data, the advocacy concept can lead and enable any organization to be more stakeholder-centric, flexible, dynamic, and financially successful.

This is a clear path and map to EX maturity. Where is your company on the journey?

A group of people enjoying Inclusive Customer Experiences

Diversity and inclusion initiatives have become front and center for many organizations in recent years. It’s important for brands to create diverse and inclusive customer experiences (CX) and employee experiences (EX)—not ‘just’ because being more inclusive is the right thing to do, but also because organizations have a lot to gain from accommodating greater diversity in every experience they create.

Of course, an organization stating diversity and inclusion goals is a good start, but how can brands like yours translate such goals into tangible Experience Improvement (XI) strategies and tactics that create more inclusive customer experiences? There are many, many opportunities here, but the most important thing to do is to just get started. 

So, here are three quick thoughts you should apply right now to create more inclusive employee and customer experiences.

3 Keys to Creating More Inclusive Customer Experiences

  1. Key #1: Don’t Be Afraid to Make Mistakes
  2. Key #2: Engage New and All Audiences
  3. Key #3: Apply What You’ve Learned

Key #1: Don’t Be Afraid to Make Mistakes

It’s understandable for organizations to be intimidated by the prospect of making mistakes while attempting to accommodate and include new audiences. Such mistakes can quickly become viral via social media, review sites, and other tools, creating headaches both for brands and the customers (or employees) at the heart of such events.

Though this worry is certainly a valid concern, it’s better to accept that mistakes might be made and press forward with your diversity and inclusion efforts than to allow timidity to outright impede either. These are the growing pains of becoming more inclusive with your customer and employee experiences, and facing them head-on will also give your team an opportunity to consider how best to handle such mistakes and learn from them. 

Experience shows that both customers and employees accept that mistakes inevitably occur and are a result of activity. Being passive is not an option when trying to create more inclusive customer experiences. Overcome the fear of making mistakes and concentrate on a transparent and authentic way to deal with them when they occur.

Key #2: Engage All Audiences

If you’re still concerned about how best to connect to audiences you haven’t consistently talked to before, this is the section for you. For many years now, the big idea behind CX and EX programs has been to simply gather as much feedback as possible from as many people as possible. However, before turning any listening posts on, you should sit down with your team and design (or reorient) your experience initiatives with your end goals in mind. You must ensure that you give all audiences you want to hear from the opportunity to provide feedback. 

In this case, if your goal is to create more inclusive experiences, you should consider which audiences you need to reach out to and how to do so. This means doing some legwork to find out how those audiences communicate, what their preferences are, and bringing all of those insights to bear when meaningfully improving your experiences to accommodate diversity and inclusion. 

Also, don’t forget: You need the right tool to collect feedback from all audiences as well as to disseminate that information to all members of your organization. Make sure you are using accessibility tools like screen readers, larger font sizes, higher contrasts, etc.

Key #3: Apply What You’ve Learned

You can and should apply the above mindset to any experience goal you have across the entirety of your business. Applying it here will give you the intelligence and landscape map you need to achieve Experience Improvement (XI) for new audiences. 

However, intelligence and roadmaps are only half the battle; taking action is imperative to actually making your experiences more inclusive. The work is ceaseless and oftentimes difficult, but if your team is ready to continue making an effort, you can be assured that the audiences you need to reach will respond.

As you continue to take action on what those audiences tell you, you’ll be able to meaningfully transform your business and realize your goal of a more inclusive experience. Being more inclusive is an invaluable component of marketplace leadership, but it’s also what will set your organization apart from your competitors in your customers’ eyes. The result is a mutually beneficial, meaningfully improved experience that will demonstrate to all your organization’s commitment to diversity and inclusion as well as faster revenue growth and higher profitability.

Click here to learn more about the importance of diverse and inclusive experiences in my full-length point of view article. I take a closer look at the topics explored here and go over a few other best practices you might not have had the chance to read about elsewhere.

Customer Experience Trends Banks

What is the future for employee and customer experience trends in banks, wealth advisory firms, and credit unions? InMoment recently dove into the financial services industry’s 2022 outlook—and there’s a lot to unpack. 

Through our dedicated Strategic Insights Team, we collected data from bank, wealth advisor, and credit union consumers and employees across North America. This year’s trends report has unearthed a few key discoveries that these businesses must pay attention to if they want to differentiate themselves in this competitive market.

When you have both customer and employee perspectives, it’s easier to rethink the workplace and how one experience affects the other. Let’s think through this together to improve finserv experiences for the long haul:

Employee and Customer Experience Trend #1: Digital Experiences and Personal Engagement is Vital to Improving Experiences

One of the first questions we asked customers and employees was, “what experiences are you looking forward to in the following industries [in 2022]?” 

For Customers: Most banking customers responded with “tap-&-go or digital wallet” (Apple or Samsung). This hammers in a point this industry is all too aware of: digital transformation is a crucial element that all banks need to pay attention to as customer expectations evolve. And that extends to other types of financial services businesses as well, be it investment management or credit unions.

For Employees: On the other hand, employees have a unique perspective to add to this conversation. One stated that they would like:

“More time [spent] with customers around personal investments.” 

— Financial Services Wealth Advisor

Of course, different firms operate with different goals in mind, but what’s important to take away here is how the customer experience is impacting the employee experience and vice versa. With this insight in mind, businesses across the financial services industry should include the employee perspective in their customer experience efforts. What do your bank tellers know about friction points in the in-branch experience? What improvements do your advisors think can be made in client sessions? The answers could lead to major improvements in the customer experience and to bottom line influencing factors like customer retention.

Employee and Customer Experience Trend #2: Focus on Both Digital and In-Person Interactions to Serve All Customers

We’ve all seen the articles claiming that the “in-branch experience is dead,” but that couldn’t be further from the truth. According to our data, there are those customers that prefer 100% self-service capabilities, but there are also those customers that rely on in-person interactions—and there are employees that find fulfillment in serving those customers.

When asked what their primary expectations for their experiences were, the majority of consumers voiced their desire for self-serve options, specifically with investments profiles, banking services, or credit union interactions. At the same time, employees also expressed at the same time that they want training to support customers better, whether that is in a contact center, over live chat, or in-branch. 

To satisfy both employee and customer expectations for experiences, finserv businesses need to make sure they are focused on both digital and in-person interactions, and make sure they are consistent while they’re at it.

Employee and Customer Experience Trend #3: How to Optimize Talent Acquisition for Gen Z

Employee values tend to shift from generation to generation and it’s the responsibility for businesses to acknowledge those changes if they want to last. That’s why employers everywhere have been thinking more about Gen Z and how they’ll carve out a future for the workplace, and finserv businesses are no exception. 

To help banks, investment advisors, and other finserv employers understand Gen Z, we leveraged our latest trends report to dive into Market Pulse data as well as indirect and inferred transactional data and put together a pros and cons profile for the most critical factors in recruiting a Gen Z employee specifically in the finserv industry. Check it out below!

Based on these findings, Gen Z seems likely to be attracted to a work setting that prioritizes instilling a sense of purpose in employees and supporting a collaborative work community, on top of, understandably, ensuring financial security.

There are many ways to foster these attributes in your company’s work culture, but one thing is for sure: as Gen Z grows more prominent in the workforce, it is vital that businesses shape work cultures according to Gen Z ideals if they wish to attract top talent.

Not only did InMoment feature the financial services businesses like banks, wealth advisory firms, and credit unions in its newest Customer and Employee Experience Trends Report, but the research covers ten other industries as well! If you’d like to learn more about what’s happening in 2022’s experience realm, take a look at the full online version.

Unstructured Data

Power from the People

Employee insights can come from a multitude of sources like unstructured data; and, with churn at record levels (overall turnover rate is estimated at 57.3 % per year, and with Gen Z changing jobs at a rate 134% higher than in pre-pandemic 2019)—and the cultural, operational, and customer value discontinuity this can create—it’s essential for every company to have, and apply, every piece of relevant data.  

Information from employees gives businesses power and can be leveraged to enhance customer experience, resulting in higher retention, more positive customer behavior, and stronger business outcomes.

Workforce Analytics and Voice of Employee

Employee data streams come from two principal frameworks: People Analytics and Voice of Employee (VoE).  People Analytics aka Workforce Analytics, are the data sets HR uses to make recruitment more effective, increase retention and longevity, and improve fit, alignment, and productivity. The pandemic has had a profound effect on people analytics, with challenges coming from differing industries, job/role types, and locations. Today’s most successful companies can and do, utilize internal and external data to enhance workforce strategy through better planning.

Voice of Employee is a bit more complex, and given today’s talent landscape and heightened set of employee responsibilities, perhaps even more crucial. VoE programs collect, analyze, and distill employee feedback to identify areas of performance, challenge, and opportunity. These programs were largely manual until recently, which is both costly and time-inefficient. Also, when traditional people analytics tools were applied to unstructured data, the resulting text analytics were superficial, yielding little real actionability. The best and most contemporary approach for employee-generated text analytics is natural language processing, or NLP.

…Organizations that use workforce analytics have the most engaged workforces, and they thrive in tough conditions. 

— Tim Ringo, Workforce Analytics Isn’t as Scary as It Sounds

Leveraging Natural Language Processing for VoE Analytics

With Natural Language Processing for VoE, organizations can gather an in-depth understanding of factors driving emotionally-based behavior and performance, resulting in clear and impactful programmatic recommendations that drive engagement, loyalty, and commitment. 

  • Gather: All data sources (surveys, reviews, messages, emails, chat threads, and other communication) can form a single stream
  • Process: NLP analyses can be run utilizing HR language, with customized dashboards, or they can be exported to the organization’s business intelligence tool
  • Analyze: Identify areas of focus and experience and emotionally-based sentiment with the power of NLP
  • Act:  NLP enables narratives on topics, trends, and patterns to be developed, along with root cause issues and supporting data

Figures 1&2 / Polarity data visualization from insurance company reviews

Using NLP helps businesses identify key topics, categories, themes, intentions from every document in the data stream, and detailed sentiment analysis. And, when compared to open source and traditional people analytics techniques, NLP is more efficient and requires less technical support. NLP is, as well, both highly configurable and completely secure with any infrastructure.  

All employees have stories about their experiences and those of customers. NLP helps organizations hear, understand, share, and leverage those stories to make business decisions that make work life and their customers’ lives better.

Company Culture & Employee Commitment

This article was originally posted on CustomerThink.com

Why Is There An Urgent Need For Companies To Do This Now?

Covid-influenced working conditions have contributed to employee disconnection from company culture, disaffection, and even emotional burnout, resulting in high prospective churn rates in many business sectors, i.e. “The Great Resignation”. Employee disconnection and discontinuity also have both an indirect and a direct impact on customer behavior. As viewed by many consulting organizations in their evaluations of this unfolding era of chronic talent shortages coupled with low unemployment rates, the conjoined, common themes of enterprise humanity and reframed purpose seem to be among the most attainable stakeholder prescriptives for dealing with the current employee landscape.

So, the state of organizational culture has tremendous and undeniable influence on employee behavior. In the famous words of Peter Drucker, “Culture eats strategy for breakfast.” Unfortunately, and rather irrespective of the beliefs of some corporate leaders and consultants, no amount of strategic corporate sophistication and modeling can work a company out of a toxic, unfocused purpose, and non-humanistic culture. It must come through disciplined leadership, investment, assessment, and change.

The challenges for many organizations, though, is that they have either minimally addressed or completely missed the impact of enterprise culture on the level of employee connectedness, contribution, and commitment.

Why Can’t Traditional Employee Engagement Research Target Company Culture For Improvement?

Classic engagement research, as practiced since the mid-1980’s, is very effective at identifying employee perceptions into the nature of their jobs, the relationship between employee and manager, employee and co-workers, and the line of sight between the employee performance and company performance. It also functions on the frequently disproved tactical assumption that ‘happy employees = happy customers”, and so is designed to only superficially address the relationship between deeper feelings and beliefs about enterprise culture and resultant employee behavior.

For organizations to recognize employee needs and wants within today’s rapidly changing landscape, there must first be a recognition that employees, as stakeholders and assets to the company, have many of the same behavioral and life stage issues as customers. And, just as customer behavior can range from high negativity/sabotage to high positivity/advocacy, so too can employee behavior. The goals for employees, then, are commitment and connected behavior, with advocacy as the highest state. 

The foundation for attaining this goal is an understanding of cultural impact. More specifically, today organizations need to identify, and leverage, employee perceptions of culture relative to:

  1. Cohesion of functions and units/groups within the company
  2. Enterprise/functional/group customer and value focus
  3. Management/leadership effectiveness, integrity, and trust
  4. Influences on morale – diversity, inclusiveness, communication, latitude
  5. Support for personal career, growth, training, and work/life balance

Is There A Clear And Actionable Path To Company Culture Improvement?

The quick, and encouraging, answer is ‘Yes. There is’. This path, however, requires several things. First, senior leadership must have, or develop, an understanding of where the cultural challenges exist for employees. Next, the organization must be both disciplined in discovery and change and willing to make at least some investment. The financial and time investment comes through macro culture maturity assessment, targeted qualitative and quantitative employee research focused only on their connection, and commitment to, company culture, and development of communication, process, and other techniques for building and sustaining greater connection with and by employees. 

This path is not necessarily simple, and sometimes not easy, because cultural DNA is often strongly embedded, and change-resistant, within the enterprise. But, in the wise words of Yoda when confronted by Luke Skywalker’s reluctance to embrace new thinking: “You must unlearn what you have learned.”

Want to learn more about the power of employee experience (EX) and the benefits it brings to your bottomline? Read our eBook on understanding the power of employee engagement.

Blended Experience

In 2022, modern retailers will face many challenges as the industry continues to recover from the global pandemic. During the unpredictable lockdown, retail brands were forced to transform their in-person experiences to digital ones. And now, according to our most recent EX & CX Retail Trends research, both customers and employees expect a blended experience.

But what does the term “blended experience” really mean? Well, it’s essentially bringing the digital experience to the in-store experience. Hence, “blended”. Still not getting the gist of it? Then let’s take a look at three concrete examples we’ve discovered based on data our Strategic Insights Team collected from consumers and employees across North America. Here’s what people are truly expecting:

Blended Experience #1: Buy Online, Pick Up Instore

It’s no surprise that being able to buy products online is an expectation, but customers also want options on how to receive said product. During quarantine, retail stores often offered same-day home delivery, curbside pick up, and buy online, pick up in-store (BOPIS). The question is, which of these will last? 

For employees, curbside and delivery have proven expensive to operate and don’t drive sales like in-store traffic does (especially if retail employees are working commission).  Meanwhile, because delivery is no longer considered a free necessity, and because curbside pick-up times aren’t as flexible, customers are less impressed with these options. So, BOPIS is a compromise: customers get to easily buy products online and receive their items relatively quickly, while employees get to engage with customers in-store while avoiding the obstacles those pickup types present.

Blended Experience #2: Pick Up, Walk Out (Automatic Payment)

After a long two years, customers and employees are used to a contactless experience and find it convenient for reasons beyond COVID. Additionally, with grocery stores continuing to capitalize on self-checkout experiences and innovations like Amazon Go’s Just Walk Out technology, more customers are expecting the retail industry to follow suit. Simply removing checkout lines can save retail stores over $37.7 billion and allow customers to shop without the hindrance of wasting time waiting in line.

Blended Experience #3: Virtual Try-On

Augmented reality in retail blew up during the pandemic. And, with the many social media filters that younger customers use daily, it’s no wonder that virtual try-on capability has emerged as a top expectation. Of course, customers would rather not wait to change in a stall or travel all the way to a store, but the real kicker is that virtual try-on actually minimizes a lot of risk for them.

One of the greatest barriers for online retail experiences is the reality that customers can’t really try on what they buy. With a virtual feature like this, customers get a visual sense of how the items they’re eyeing could fit in their lives, without ever having to leave home. After a virtual try-on experience, customers are reassured that their purchases truly suit their desires, reducing the chance of returns.

The In-Store Experience of the Future

It’s clear that, when it comes to retail, customers want a blend of digital and in-person experiences, not just one or the other. Both types of experiences have their pros and cons, and it’s our job as experience professionals to deliver an integrated interaction that brings forth each of their valuable qualities. Hopefully, these examples can help your brand take a second look at the experience you’re currently providing customers and spark meaningful Experience Improvement (XI) this year.

But this dynamic doesn’t stop at just blended experiences. The retail world is being impacted by changes in feedback methods, the influence of social media, and the Gen Z perspective. There are many opportunities beyond blended experiences for retail stores to meet customer needs, which you can learn more about in our new eBook: EX & CX Trends: What Retail Brands Need to Know in 2022.

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