Customer Loyalty

EMOTIONAL THEME: Customer Loyalty

Success for a company is simply identified by its bottom line returns and (if publically listed) the total share holder value. For that reason, organisations expend large percentage of their revenues in marketing costs.

Customer Loyalty is a direct function of Employee Engagement. The greater the engagement level, the greater the employee job satisfaction, leading employees to outperform their expectations by at least 50% [1].

Examples include:

  • Morrison Management Specialists increased client satisfaction by 1% for every 2% increase in employee engagement [2].
  • Sears Employee-Customer-Profit chain survey found that for every 5% increase employee engagement resulted in around 1.5% increase in customer satisfaction that resulted in 0.5% increase in revenue growth [3].

Diversity and Equality policy [5] play a vital part in defining Customer loyalty and acquisition. Such that for every percentage increase in the rate of racial or gender diversity up to the rate represented in the relevant population, there was an increase in sales revenues of approximately 9% and 3%, respectively.

Customer Loyalty is the bedrock of any business and Companies with high employee engagement scores had twice the customer loyalty (repeat purchases, recommendations to friends) than companies with average employee engagement levels [4] cumulating in an increase in revenues by 4.5 times [1]

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Customer Loyalty
Customer Loyalty is positively  effected by Employment Engagement by a factor of 1:2
[1]        The Hay Group, 2010
[2]        Morrison Talent Management
[3]        Harvard Business Review, 1998
[4]        Pont, J., 2004
[5]        Cedric Herring, 2009

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