Customer loyalty depends on employee satisfaction

in General Business Marketing

We’ve all experienced it – you go to a store to buy something and the service is lousy, you walk out annoyed and make a mental note never to shop there again.  Or you go to another store selling the same stuff and the service is excellent, you walk out feeling good and make mental reminder to come back to this store when you next need whatever they sell.  The difference behind these experiences is primarily employee training and attitude.  Employees who are poorly trained and/or dissatisfied with how they perceive being treated by their employer and manager will reflect that in how they deal with customers.

How does this apply to Internet marketing and sales?  Many companies focus on customer retention and loyalty as a means to market and sell additional products/services/solutions to existing customers via the Internet.  A key element of this strategy is to increase customer retention and loyalty:

  • Customer retention means that a customer continues to actively use your product/service/solution and there is some continuing relationship such as subscribing to support or maintenance services.
  • Customer loyalty means that a customer desires to continue doing business with you based on their positive experience and satisfaction.  They want to buy more from you.

While you obviously want to retain customers, developing customer loyalty is the key to generating significant revenues from existing customers.

However, before you set off on any marketing and sales program based on customer retention or loyalty, be aware that there is a direct correlation between employee satisfaction and customer loyalty.  There is a lot of research to support this – just search for ‘customer loyalty and employee satisfaction’ in your favorite Internet search engine.  If your employees, in every area of your business and particularly those who interact with customers, are dissatisfied with their situation and/or the conditions at your company overall, your customer loyalty rating will negatively reflect that.

How to use this information to benefit your business

  • If you plan to do an internet marketing campaign to your existing customers, they will deal with your employees in some manner – email, phone, shipping, etc.  Make sure that your employees are properly trained and have the right attitude to support your marketing campaign.
  • During challenging business or economic periods, businesses may need to take actions that may be negatively perceived employees.  If you’re in this situation, have a realistic plan to deal with the ramifications in your marketing campaign and customer loyalty program.
  • Customers can sense when something is wrong at a company based on the demeanor of the employees.  An employee satisfaction program should be an integral precursor to using customer loyalty for marketing and sales campaigns.

Copyright © 2009 Ingistics LLC and Marketance™

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