How does employee loyalty impact customer loyalty? Our call center recently had a period of high customer service representative (CSR) turnover. Are there any statistics available about employee retention affecting customer retention and satisfaction?

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Employee loyalty and engagement, and the factors contributing to it, have a direct relationship to customer marketplace behavior. And, similar to customer advocacy, employee advocacy and ambassadorship is the highest, most desirable form of staff behavior. The excerpt below is from an article I wrote called Cowboys and Saloons. Chickens and Eggs. Customers or Employees. Which Came First?


Researchers—including James Oakley of Purdue University, Northwestern University's Forum for People Performance Measurement and Management and relationship experts Dwayne D. Gremler of Bowling Green State University and Kevin P. Gwinner of Kansas State University—have found that employee behavior and advocacy—regardless of the employee's level of satisfaction—have a direct and profound relationship to the behavior of customers, and also to corporate sales and profitability.

Employees are capable of directly contributing to both customer disappointment and customer delight. It is essential that companies have a research and analysis method that links staff performance engagement directly to customer behavior, so they can hire, train, recognize and reward employees for how they contribute to customer value.

This was first published in August 2006

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