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Can efforts to capture customer loyalty be thwarted by employee loyalty?
Evidence gathered from top retail groups, including auto dealerships, indicates that employee loyalty directly affects customer loyalty and thus business results.
Dealer operators and their managers do their business, their stakeholders and their shareholders disservice when they fail to foster, develop and reward employee engagement. Get this loyalty driver fixed first. Then watch the ROI on customer loyalty improve.
According to customer experience researchers Temkin Group, engaged employees are key to engaged and loyal customers.
“Engaged employees deliver a better customer experience; a better customer experience creates customer loyalty; puts employee engagement; and, customer loyalty leads to more profitable business results,” Bruce Temkin, managing partner, told Direct Marketing News.
Among auto dealership franchises, Toyota does the best job at this, according to Temkin’s Experience Ratings report, just released.
Is employee loyalty killing your dealership?
When employees are taken for granted, not given clear direction, rarely cheered on and viewed as utilities, don’t expect them to engage customers in positive ways.
Absenteeism, water cooler huddles and high turnover are signs employee loyalty is in bad shape.
The good news is that developing employee loyalty is not rocket science, but a good dose of the Golden Rule, treating others as one would like to be treated.
Here are some ideas for engaging employees so they can deliver better customer experience:
“Most industries earn their reputations,” Temkin told Direct Marketing News. “What happens is industries end up cultivating their mediocrity.”
What reputation is employee loyalty cultivating for your dealership and your customers?