Jul 5, 2010

Dependency of Customer Loyalty on Employee Satisfaction

All customers experienced it when go to a store to buy something and the service is down they walk out annoyed and makes a mental note for them never to shop there again. Or  they go to another store selling the same stuff and the service is excellent, they walk out feeling good and make mental reminder to come back to this store when the next need whatever they sell. The difference behind these experiences is primarily employee training and attitude. Employees who are poorly trained or dissatisfied with how they perceive being treated by their employer and manager will reflect that in how they deal with their customers.                                         
Many companies focus on customer retention and loyalty as a means to market and sell additional products, services or 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 or solution and there is some continuing relationship such as subscribing to support or maintenance services. While Customer loyalty means that a customer desires to continue doing business with firm based on their positive experience and satisfaction. They want to buy more from it. While companies obviously want to retain customers, developing customer loyalty is the key to generating significant revenues from existing customers.
However, before company set off on any marketing and sales program based on customer retention or loyalty then 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” on favorite Internet search engine. If employees in every area of its business and particularly those who interact with customers are dissatisfied with their situation or the conditions at company overall customer loyalty rating will negatively reflect that.
In this situation companies immediately take action for their business as: If they plan to do an internet marketing campaign to their existing customers, they will deal with its employees in some manner like email, phone, or live chat etc. Secondly during challenging business or economic periods, businesses may need to take actions that may be negatively perceived employees. If companies are in this situation then they have to make a realistic plan to deal with the outcomes in its marketing campaign and customer loyalty program.
Customers can sense when something is wrong at a company based on the conduct related with employees. In epitome, an employee satisfaction program should be an integral originator to using customer loyalty for marketing and sales campaigns.

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