Customer and Employee Loyalty: How Do You Rate?

The average company loses half their customers in 5organization closer to the set goals. Clearly define
years and half their employees in 4 years¹ Thisthese and communicate them.
has significant impact to overall customer, employee,Invest in your employees. An attitude of indiffence to
investor and supplier loyalty. Loyalty is the degree toyour customers causes an average of 68% of
which these groups are loyal to your product, servicecustomers to stop doing business with you.² This
and organization.attitude of indifference is displayed and communicated
In today's market, being customer focused is a key toby employees both within the organization and to
survival and longevity. High levels of loyalty havecustomers. A commitment to communication, on-going
positive impact on customer satisfaction, profitability,learning, culture development and rewarding
and reputation. Happy employees work harder,performance all help in creating a positive attitude and
produce more and stay with an employer longer.work environment.
Investors and suppliers feel increased confidence in theIdentify the target customer group that will purchase
organization and their actions reflect that.your product and service. These customers should
Evaluate current levels of loyalty. Information can beclearly see the value in what you offer, have the funds
gathered from customers, employees, suppliers,to pay for it and be looking for long term
partners and investors. Ask questions such as: Howcustomer-supplier relationships. Are you currently selling
satisfied are you with our product and service? Howto your target audience? Should you be targeting other
well are problems handled? How can we better servegroups? The closer you are to your defined profile, the
you? Ask your employees how satisfied they are inhigher loyalty and profitability you will experience.
their jobs and how well are they communicated with.The bottom line is that Loyalty has significant impact.
These all affect loyalty. Find areas to improve on, andCustomers, employees, suppliers and investors are
then act on them!important to the success of your business. Take the
Create clear mission, vision and value statements andtime to re-evaluate your success with each group, and
goals. These provide the map to guide daily behaviorwatch as your performance, profitability and potential
and long term performance; it invites people to adjustincrease!
the activities, projects, tasks to support and shift the¹ Frederick F.