The Importance of Employee Loyalty

Do you think that there’s a relationship between happy employees and customer loyalty?  I think yes and I’m not alone.  When I asked this question via Twitter I got some great answers back.  Here are some of them:


@joerawlinsonEmployee loyalty usually means a happier staff. When they are happy, they serve customers better. That grows customer loyalty


@wwcasey: “If you want to know why customers view the company the way they do, look at how the company views employees.”


@jasontryfon: ”It’s a proven fact employee sat has direct correlation on customer sat. Upset staff, upset customers : )”


@efrainm: “Fastest way to loose loyal customers is having them deal with an angry detracting employees.”


@michaelfieldcom: “For organisations, the first customer is the employee, the actual customer will be treated the way the employees are treated.”


Think about it for a second.  One place I hate going to is the DMV. Why?  Because I generally (sorry to the good DMV employees) get the cranky man/woman sitting behind the counter.  They don’t look up and definitely don’t give me the time of day.  After waiting in line forever, I finally get to the counter where the person only knows their job and can’t answer questions that don’t deal with “Line 4”.  What does all of this make me?  It makes me dread going to the DMV because I know that the cranky employees I have had to deal with are going to put a damper on my day.  If there was a choice to go to a non-DMV, I would but unfortunately you can’t renew your license at Starbucks.


So what would happen if all DMV employees loved their job?  They’d smile more and probably really want to help me.  Remember the days when companies would hand out mirrors to employees and tell the employees to smile and look at themselves in the mirror when they’re talking on the phone?  The smile goes through the phone. 


You might not agree with my example, but I think you get the point. Your employees are generally the first line to your customers so make sure that you’re treating your employees right.  Their attitudes will be reflected onto the customers.


Dr. Gary Rhoads wrote in his recent blog “Employee Engagement: An Essential Ingredient for Business Success”


“… found that one out of every 10 customers was hurt by disengaged employees. We also found that the work environment combined with employee attitudes has a significant impact on a customer’s perception of quality. For this reason, it’s important that companies lead with their strengths, emphasize the positives, and remove the barriers that lead employees to be disengaged with their jobs, their organization and customers.”


If you want to read an interesting case study on employee loyalty having a direct impact on revenue, read this case study “Top 11 Ways to Increase Your Employee Loyalty” provided by Allegiance.  One bullet in the report that struck me was:


“According to Target Training International, more than 60% of all customers stop dealing with a company because of perceived indifference on the part of an employee.”


Sometimes the answers to your problems are closer than you think.  Look inside your organization as well as outside when you realize that customers aren’t happy.