#206 Kindness as a Competitive Advantage: Transforming Business Through Genuine Care

Can kindness transform your business's bottom line? Discover how genuine care and empathy can revolutionize the retail world on this episode of the Scott Townsend Show. We promise you'll learn how kindness isn't just a feel-good tactic but a strategic advantage. From the impressive low turnover rates at Trader Joe's to the exceptional customer service at Zappos, we explore real-world examples of companies thriving through a culture of kindness. Learn how positive company culture impacts employee retention, customer loyalty, and ultimately, growth and profitability.

Join us as we delve into the financial benefits of prioritizing employee well-being and crafting memorable customer experiences. Hear about how Starbucks' investment in comprehensive benefits boosts employee morale and contributes to their success story. Understand why the Container Store's dedication to extensive training pays dividends in customer service excellence. Whether you're an employee, a manager, or a business owner, this episode offers insights and inspiration to cultivate a kind and profitable workplace. Don't miss out on strategies that can lead to sustainable success for your business!

Transcript

Speaker 1: 0:00

Hey everyone, welcome back to the Scott Townsend Show, and today we're diving into something really important, I think the power of kindness in the retail world.

Speaker 2: 0:09

Welcome to the Scott Townsend Show brought to you by Dietzelman Productions.

Speaker 1: 0:17

Whether you're an employee, a manager or a business owner, showing kindness to your customers and fellow employees can have a huge impact. We'll chat about how kindness can improve employee retention, customer loyalty and even boost your bottom line. So let's jump right on in. First off, what do we mean by kindness in the workplace? It's not just about being nice. It's about showing genuine care for others, being empathetic and taking actions that show you care. In retail, where things can get pretty hectic, a little kindness can go a long way. So let's start with employee retention. According to the American Psychological Association, employees who feel valued and appreciated are more likely to stick around. It makes sense, right? If you feel respected and cared for, you're less likely to look for another job. A retail environment where employees are treated with kindness can seriously cut down on turnover rates. Let's take Trader Joe's, for example. They're famous for their positive company culture, where kindness and respect are key values. Employees are encouraged to be themselves and the company invests in their well-being, with good pay benefits and a supportive work environment, and, as a result, trader Joe's has a low employee turnover rate. They're saving on hiring and training costs and ensuring customers see familiar, happy faces. Now let's talk about customer retention. Happy employees tend to make happy customers. The Harvard Business Review study found that customers who have positive experiences with employees are more likely to come back and spend more money. Kindness and customer interactions whether it's a warm greeting, a helpful attitude or going the extra mile to solve a problem can turn a one-time shopper into a loyal customer. Heck, look at Zappos, the online shoe and clothing retailer. Zappos built its brand on top-notch customer service with kindness and empathy at the core. Their reps are trained to create wow experiences, often going above and beyond to make customers happy. So this approach has led to super high customer loyalty and repeat business, proving that kindness is a powerful tool for keeping customers All right. Let's talk about dollars and cents.

Speaker 1: 2:55

Kindness in the workplace isn't just about feeling good. It makes good business sense also. So happy customers and satisfied customers lead to financial benefits. Lower employee turnover means less money spent on hiring and training. Loyal customers mean more repeat business and positive word of mouth, which are gold for growth. So think about it. Growth. So think about it. If you have a low employee turnover rate, you're not spending time, energy and money on hiring so much. You'll always be hiring, but if you have a constant revolving door of people coming in and leaving. Then you're just spinning your wheels, and so if you've got a low turnover rate, then that means you spend less money, time and energy training over the same things over and over and over again. You can, you can go deeper in your training, but if you've always got a fresh crew, you're you can't really get past the basics and you're spending all your money and energy talking about the same thing over and over again.

Speaker 1: 4:08

Consider Starbucks. They're known for their positive work culture and excellent customer service. By offering benefits like health care, stock options and tuition reimbursement, starbucks shows kindness to its employees. This creates a culture where employees are motivated to deliver exceptional service. The result Consistent growth and profitability, showing that kindness contributes directly to a strong bottom line.

Speaker 1: 4:39

There's another case the container store. I don't know how many of you I've never been to a container store, but let's add another example here. They believe that taking care of employees leads to taking care of customers. They offer full-time employees an average of 263 hours of training in their first year, compared to the retail industry average of just eight hours. That's incredible. This big investment in training not only shows employees they're valued, but also helps them provide top-notch customer service. The container store also pays its employees well above the industry average and offers great benefits. It pays its employees well above the industry average and offers great benefits. This commitment to kindness and respect results in a super low turnover rate. Their CEO, melissa Reiff, says a happy and well-trained employee base leads to enthusiastic and loyal customers. This approach has helped the container store perform strongly financially and maintain high customer satisfaction.

Speaker 2: 5:55

Thank you for joining me. Scott Townsend Show. We'll be back right after this.

Speaker 1: 6:00

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Speaker 1: 6:24

So how can you bring more kindness into your retail environment? Number one create a culture of appreciation. Now, this doesn't necessarily mean it has to come from management, although it's nice when management recognizes people. But I think it's also just as important for employees to recognize each other. When you see your peers and colleagues doing something well, something good, something above and beyond, I think when you get your peer-to-peer people complimenting and supporting each other, you really start gaining momentum.

Speaker 1: 6:59

Invest in employee well-being. I think it's important. Ken Rusk told me one time he pulls new employees into his office and asks you know, interviews them, gets to know them and asks them what their goals are, and then he tries to see if there's anything that he can do at work to help them reach their goals. So it kind of helps him line up with them instead of them with him and they have a greater shared purpose. He wants to get his objectives taken care of. He knows what their objectives are like going to college, buying a car, whatever? Knowing that shows them that he's concerned about his employees and their well-being, and empathy. So another one is train for empathy. Oh, this one's a little tougher, I think. Provide training that emphasizes the importance of empathy and kindness in customer interactions, the importance of empathy and kindness in customer interactions.

Speaker 1: 8:09

Role-playing I think role-playing is really important in this train for empathy Because it's a little sympathy and empathy. You know listening to the customer, listening, being empathic Is that even a word? You can be. You know sympathy for them, feel sorry for them, or you know what they're going through and you can identify with them and help them come to some sort of conclusion, especially when they've got a problem with your service or product. That takes a lot of work. So role-playing would be key there.

Speaker 1: 8:49

And you know, lead by example. Heck, be kind. You know you can't be more kind than when you pick up a piece of trash off the floor. Why is that? Because you're taking pride in the appearance of your store. You're taking pride in the appearance of your store. You're taking pride in the appearance of your colleagues' store. You're all working together. You don't want anybody slipping, tripping or falling over pieces of paper or cords or whatever in the aisle. And that's showing kindness, because you know you want your employees coming to work and leaving in the same condition they showed up in, but you also want your customers being able to show up at your store in the same condition they showed up in. So lead by example, help people, demonstrate being kind to fellow employees and customers, because people are watching Other employees are watching you, other customers are watching you and they'll see that you mean business, they'll see that you're taking this initiative of kindness serious and they'll also see the benefits. So there you go.

Speaker 1: 10:08

And the last one is you know, encourage team bonding. Have little meetings. Social events, you know, blow off some steam, go happy hour or something, um, something you know, birthday parties or a weekend barbecue, I don't know something where employees can get together and have a good time, and just, you know, have a good time. I think that that's a good team building. It's good for team building. It's good for getting to know your colleagues better in a more relaxed atmosphere and you feel like you're more part of a, the bond grows stronger. You feel like you're more part of a group, your group.

Speaker 1: 10:56

So yeah, in conclusion, you know kindness in the retail world is more than just a nice to have. It's a strategic advantage. By fostering a culture of kindness, we can improve employee retention, enhance customer loyalty and ultimately boost your bottom line. Remember, small acts of kindness can have a big impact. So let's make our workplaces a little kinder. Well, that's it for now. Yeah, go out there, be kind, be nice. I think kindness wins. Yeah, just go out there and try to be nicer. The world could use a kinder, nicer place. I think. If you have any thoughts or experiences with kindness in the workplace, I'd love to hear from you. Reach out on social media or leave a comment below, or you can send me an email, scott at scotttownsendinfo. So anyway, for kindness. This is Scott Townsend. Have a great day, everything's going to be all right and we'll talk to you later.

Speaker 2: 12:03

The Scott Townsend Show is a Dietz-O-Man production. For more episodes, visit the Scott Townsend Show YouTube channel and we'll talk to you later.