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Customers spend more in response to engaged employees

Employee incentive program may influence how much customers spend by bolstering employee engagement.

Creating and maintaining an employee incentive program not only increases the performance of staff members, but may also influence how much customers spend.

A study by Forum found that improving levels of employee engagement could lead to as much as a 23 percent increase in revenue. The research, which specifically examined the hotel industry, found brands that conveyed value to customers through employee efforts to provide quality service saw an increase in consumer spending.

"The incentive world can be insular, with the talk and discussion focused on what's good for the employees," Frank Mulhern of Northwestern University told Incentive Magazine. "But there's also this downstream effect for the service industry. It lends itself to a greater appreciation of recognition and rewards – not only do they make for better employee performance, they have a tangible effect on the customer and their spending."

The additional communication and recognition that resulted from the incentive programs created a culture in which employees were more engaged and willing to solve problems. This same environment could lead to organization-wide innovative solutions that may ultimately improve the customer's experience and open new avenues for growth, according to Entrepreneur.

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