Associate Experience Is Becoming the Norm for Retail Success

In the retail business, survival often hinges on staying ahead of the curve. In the old days, customer experience and sales were the key indicators of success. Today, the game has changed, and an important term is beginning to resurface with newfound potential. The associate experience (AX) is stepping up as a critical ingredient in retail success.

Retailers must now focus on the well-being of their workforce more than ever. With the dramatic changes in social dynamics and economic factors post-pandemic, retail employees have been quitting at record rates. Although companies can focus their efforts on understanding the habits and psychologies of certain generations, investing time and effort into enhancing the overall workplace atmosphere and employee attitudes could potentially yield more significant benefits.

And while TikTok trends might not be a magic-pill solution for making employees happy, there's no denying the importance and value of the associate experience. "Associate" includes everyone in the company, highlighting partnership and shared responsibility. Through this lens, everyone has a role in shaping the company's strategy, impacting each person's unique career journey.

This approach moves away from the term "employee," which implies a power divide and the need for one group to change. Employee engagement initiatives often fail to deliver the desired boost in productivity and retention rates. Companies invest heavily in these programs, but they usually only yield short-term improvements in engagement scores because these efforts create an unnecessary divide between management and workers. As a result, companies may experience temporary engagement spikes that quickly deflate, causing employees to view these programs as manipulative.

Instead, understanding that each associate's experience is unique, almost like a strand of DNA, creates meaningful engagement. It's not about sparking temporary surges in engagement scores, but about fostering a culture where every associate feels valued and invested in the company’s success. This approach is transformative, creating long-lasting and sustainable change — the very promise of engagement programs.

Let's face it: Retail associates are the face of the store. Their behavior and level of knowledge can make or break a customer's experience. A happy and motivated sales team can create a positive atmosphere, which can lead to customer loyalty and repeat purchases. However, if a company has a bunch of unhappy employees, it might just throw potential sales down the drain.

Keeping employees satisfied has another big benefit — it helps diminish staff turnover. Replacement hiring is costly and disruptive. Retailers can cut down on these expenses by fostering a positive work atmosphere. When companies enhance AX, associates can eliminate tedious work and focus on tasks that add more value — a win-win for both the employee and the retailer. One way smart retailers do this is by providing their associates with the right tools to make their jobs easier. This strategy is crucial, especially for executing tasks like Buy Online Pick Up In Store (BOPIS) order prep that are critical to a store's success.

Sales associates who feel valued and engaged may also be more motivated to ensure customer satisfaction and boost sales, and they may be more capable of offering product recommendations and upselling. A focus on AX can therefore lead to an increase in sales and revenue. Additionally, they may be more likely to embrace new digital tools, which is essential with the rise of e-commerce and omnichannel retail strategies.

A brand's reputation is crucial in this digital age. Customers can share their experiences online, and associates play a vital role in shaping these experiences. Happy employees provide excellent customer service, contributing to a positive brand reputation. In contrast, a poor AX can lead to negative reviews, damaging your brand's image and profitability.

One such example of this practice is seen with PepsiCo. According to the National Retail Federation (NRF), PepsiCo, with most of its 70,000 North American employees involved in operations, places a strong emphasis on the associate experience. The company is dedicated to "removing friction" from jobs, simplifying tasks, and facilitating overall employee well-being. It also offers educational opportunities, allowing employees to continuously improve themselves personally and professionally.

Last January at NRF 2023: Retail's Big Show, PepsiCo North America's CEO Steven Williams shared the company's approach to workforce management and investing in wellness and upskilling. "This is an important topic," Williams stated. "One reason we’re so interested in it is that we are a truly end-to-end, seed-to-stem business. Most of our workforce is either making, moving or selling the merchandise... So, this is a very, very important subject for us."

"We’re committed to having a workforce that is not just diverse but inclusive. It doesn’t matter where you come from, what your background is, or who you love — you need to be able to succeed to be your best self."

Steven Williams, PepsiCo Foods North America, NRF

PepsiCo also stands out for its commitment to diversity. With a history of breakthrough hires, the company continues to strive for a diverse and inclusive workforce, creating an environment where everyone can thrive and be their best self.