Winning customer loyalty begins with winning staff loyalty. Companies that try to win customer loyalty without first winning staff loyalty often find that in spite of great customer loyalty programs and initiatives, their results fall far short of expectations. This is because it is impossible to win loyalty with marketing gimmicks; people see through those rather easily. Loyalty is an issue of trust, and as such it must be earned. Obviously, customers do not give their loyalty to companies that treat them with disrespect, overcharge them, misrepresent their goods and services, or create any type of negative atmosphere to do business in. However, earning customer loyalty goes beyond the way a company treats its customers; the way it treats its employees is an indication of its character and integrityùthe things that trust and loyalty are built on. Employees who are treated unfairly do not become good ambassadors of loyalty to customers. Customers who see that employees are lied to, treated with disrespect, and forced to work in a negative atmosphere will not trust the company even if they themselves are treated well. Furthermore, companies that want employees to treat customers with respect and honor their requests cheerfully have some obligation to see to it that employees have something to feel cheerful and respectful about. An employee who enjoys working at a company and is treated fairly communicates that satisfaction in everything he does; companies cannot manufacture this. In Loyalty Rules, Frederick Reichheld points out that:
Loyalty cannot begin with tools; it must begin with leaders who recognize the enormous value of building and maintaining mutually beneficial relationships (from front matter).
The purpose of loyalty is to form lasting employee and customer relationships that lead to long-term gains, long-term growth, and customer retention. Therefore, everything a company does should foster loyalty by devel...