Employee and customer loyalty: Measures to evaluate and enhance company performance




Plume, Isabel M.

Journal Title

Journal ISSN

Volume Title



Customer satisfaction alone will not ensure company success. The concept of improving corporate strategies to include employee and customer loyalty results from this realization. Research involving wide cross sections of industry shows that retaining employee loyalty, as well as customer loyalty, is valuable and directly related to value growth of a company. Creating, improving and maintaining loyalty begins by engaging and changing the organizational culture. Customer loyalty is often related to, and affected by, specific relationships and encounters with company representatives (the employee), who effectively become stewards and ambassadors. Of those front-line employees who are serving the customer, it is indispensable to recognize the value of employee loyalty. This projection of loyalty is perceivable by the customer. Customer satisfaction measurement has grown to include the concept of customer loyalty since loyalty is a predictor of actual behavior rather than stated intentions. A theoretical model presented in this study will systematically measure both employee and customer loyalty, with the results being used to determine and prioritize areas in need of improvement. The management of loyalty and customer relationships must be achieved, in a proactive mode, to anticipate and respond to market needs, thereby creating value for a company. Through the use of the loyalty measurement results, companies can align their objectives for managing employee and customer loyalty with the organization's quality corporate strategy, culture, daily operations and management systems for the successful creation, expansion and management of employee and customer loyalty. The rewards of loyalty are long-term and cumulative. Both revenue and savings opportunities will be recognized through increases in customer retention and purchasing relationship, lower cost of loyal customers, and the reduction of employee and customer defection. Potential revenues may be estimated using the loyalty measurement results. This estimate establishes the documented link between loyalty improvements and profitability. Future success and longevity of a company will be based on its ability to create, improve and maintain employee and customer loyalty.



employee loyalty, customer loyalty, organizational effectiveness, company performance


Plume, I. M. (2000). Employee and customer loyalty: Measures to evaluate and enhance company performance (Unpublished thesis). Southwest Texas State University, San Marcos, Texas.


Rights Holder

Rights License

Rights URI