Customer loyalty depends directly on employee engagement. There is an inextricable link between customer loyalty and employee engagement. If there is one factor that is more effective and powerful than the most creatively crafted advertisement for a product or service, it is employee engagement.
Customer loyalty is directly proportionate to one most single factor, and that factor overrides every other. This factor is employee engagement. This is not something of an opinion or an observation. The link between customer loyalty and employee engagement has been testified and corroborated time and again by various studies and research studies.
How are customer loyalty and employee engagement connected to each other?
Customer loyalty and employee engagement are deeply and intimately related to each other. Studies have shown that businesses in which employees are engaged result in a doubling of customer loyalty, in terms of repeat purchases, recommendations to others, etc.
Customer loyalty and employee engagement play out in a few more important ways. Highly engaged workers are more likely to speak highly about their company’s products and services and create a better perception and opinion of their brands in the minds of the customers. They make the business more customer-centered, provide customers a better brand experience without being asked to, and needless to say, offer superior customer service.
Indirect spinoff of customer loyalty and employee engagement
Customer loyalty and employee engagement are linked in other indirect ways, as well. When employees are highly engaged, they are likely to be more productive by nearly half. This enables them to devote the extra time for other tasks, thus enabling them to become more productive.
Another key factor driving customer loyalty and employee engagement is that when employees are engaged, they are less likely to take off from work. This results in the business being able to give more time to its customers, leading in turn to more loyalty from them.
Conversely, a lack of employee engagement can lead to a sense of disconnect between customer loyalty and employee engagement. It is estimated that this factor alone results in a loss of $ 300 billion to the American economy annually. A workforce in which there is no employee engagement results in more employee turnover and increased absenteeism, as a result of which the company, being unable to give more time to its customers; loses them eventually.
Learn the nuances of how customer loyalty and employee engagement are related to each other
Want to know how leadership can bring about a closer customer loyalty and employee engagement? Then, you need to attend a webinar from TrainHR, a leading provider of professional trainings for the human resources areas. At this webinar, Lisa Barrington, a certified coach, certified HR consultant, and speaker with over 25 years of experience, will be the speaker.
Please visit http://www.trainhr.com/control/w_product/~product_id=701673?wordpress-seo to enroll for this highly interesting webinar and get an understanding of customer loyalty and employee engagement.
The link between customer loyalty and employee engagement is irrefutable
At this webinar, Lisa will explain the findings of these researches to explain the connection between customer loyalty and employee engagement. Some of the important studies that she will take up to explain the relationship between customer loyalty and employee engagement include:
- The 1994 Harvard Business Review study’s Service-Profit Chain, which showed how employee satisfaction impacted job design and leadership practices, which gave way to superior customer service, driving customer satisfaction and loyalty, resulting in greater revenues and profits;
- The 2010 study from Harvard Business Review, at which Davenport, Harris, and Shapiro observed that nearly every company they studied, including Starbucks and Best Buy, emphasized employee engagement. These companies have understood the connection between customer engagement and the bottom line. This study showed that at Best Buy every 0.1% increase in store-level engagement scores results in a corresponding $100,000 increase in the store’s annual operating income.
This webinar on customer loyalty and employee engagement is immensely useful for HR Leaders, HR Senior Managers, HR Directors, Organizational Supervisors, Managers and those in Leadership.
During the course of this very lively interaction on customer loyalty and employee engagement; Lisa will cover the following areas:
- Service Profit Chain/Gallup studies (set the stage for the connection between engagement and service/loyalty)
- The Proof-companies who took action and their results(e.g. Best Buy)
- What to do? What leadership actions are the most impactful and doable.