Loyal Customers, Enthusiastic Employees and Corporate Performance: Understanding the Linkages

Revenues, profitability and financial results in today’s businesses depend to a significant degree on the quality of the interaction between customers and employees. This relationship, in turn, is strongly influenced by employee satisfaction and loyalty.

Document Highlights

This briefing summarizes recent research, including the results of econometric analysis by leading companies, and discusses the practical implications of this analysis for Canadian organizations in their efforts to strengthen corporate results.

Organizations that know how to take advantage of the linkages in the employee-customer-performance chain have some key things in common:

• strong, customer-focused leadership
• strong internal service quality;
• a climate of fairness, trust and equity;
• employee latitude in meeting customer needs and the authority and skills to do so;
• careful attention to process details, including adequate skills, tools and resources;
• direct feedback from customers; and
• good communications.