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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Hannah Smalltree, Editorial Director
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