5 reasons why communication is so important in retail

Communication is a key business factor, especially in retail. Excellent internal and external communication in retail has a positive effect on customers and employees. Read on to discover five benefits for companies that have improved their communication strategies.

1. Improve customer satisfaction

Even if they don't complain out loud, most dissatisfied customers will leave your store or online platform after a single bad experience, never to come back. On the other hand, satisfied customers are very likely to buy from you several times.

So how can good communication lead to greater customer satisfaction?

Almost a third of all customers say that friendly customer service representatives can tempt them to favor a brand. Efficient communication clearly has a lasting effect on your customers. To improve this form of communication, you should work with your team to determine the right way to engage with customers. Be sure to:

  • Answer customers' questions in-store and online
  • Listening to customer complaints and responding appropriately
  • Use positive customer feedback to build your brand reputation

2. Increase yield and reduce costs

Higher profits are a primary goal of all existing businesses. Therefore, all business decisions, strategies, and technologies are geared towards this goal.

The benefits listed in this article clearly show that higher customer satisfaction and brand loyalty drive retail sales, while employee engagement and retention can prevent costly attrition and lost productivity. In fact, disengaged employees cost US companies up to $550 billion annually. So, imagine what your company could achieve when both your employees and customers are happy!

Furthermore, if you stop wasting money on unnecessary business tools, you can increase your company's profits in a very simple yet extremely effective way. Travel expenses and frequent on-site visits cost companies billions a year. You don't have to leave the city to work with your field staff. In many cases, efficient communication via email, chat, or video call between employees and the head office is sufficient, and the need for frequent face-to-face meetings is eliminated. A well-equipped digital workspace provides the remote communication tools needed to ensure everyone is on the same page while significantly reducing operational costs.

3. Build trust in your brand

As a result of consistent customer satisfaction, trust in the brand is strengthened, leading to further purchases and new customer recommendations. On the other hand, if the trust in the brand and its reputation are not particularly good, you can lose potential customers. If customers cannot count on the quality of your products or services, they will not sacrifice their time or money to support you.

Retail customer service is all about communication and understanding, so dealing with and relating to your customers is a great way to build trust. Even something as simple as a greeting upon entering the store can create a certain bond. Raise your employees' awareness of better customer service by providing them with mobile access to all internal communication channels.

4. Strengthen employee loyalty

When a company loses an employee, the cost to the company averages around 33% of that employee's annual salary. In return, good employee retention offers not only financial advantages but also a valuable loyalty culture for the company.

Shareholders are often not taken into account, although they are the most important factors for high fluctuation rates. Their integration into company culture and strategy helps them see themselves as part of a larger team. In addition, a strong and positive corporate culture, which includes communication methods such as upward feedback, employee recognition, and clear onboarding processes, strengthens employee retention.

5. Increase productivity

According to a Forbes survey, employees who feel listened to are nearly five times more motivated to do their best work. In addition, 97% of employees agree that communication influences their daily tasks.

So how can good communication increase productivity? While there are many ways to communicate effectively, what matters most is that employees stay connected to collaborate and effectively resolve issues. Tools like instant messaging tools, shared community calendars, and mobile access to records can provide frontline workers with the flexibility they need at work. Easy and mobile access to all collaboration tools minimizes the time spent searching for information and offers more space for your employees to work together efficiently and productively.

You can improve retail communication

To improve retail communication, start with your employees. When they are given opportunities to communicate openly and efficiently, they are more engaged, happier, and feel valued by their company. In return, they are more committed to the success of your company - your customers are satisfied, and the number of potential customers increases.