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Customer loyalty and employee engagement: an alignment for value

Matthew P. Gonring (Consultant with Gagen MacDonald, Chicago, IL, USA)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 4 July 2008

Abstract

Purpose

The purpose of his paper is to show that the rational and emotional triggers associated with customer loyalty and employee engagement can be measured in a macro manner through mathematical indexing. Myriad factors, among them digitalization and disintermediation, have gradually eroded the power of an elite group of senior managers to control corporate messaging and manage corporate reputation. Other stakeholder groups, particularly employees and customers, have become empowered under these current corporate conditions. For this reason, establishing high levels of customer loyalty and employee engagement are leading determinants of brand performance. These indexes can serve as powerful tools to build integrated messaging.

Design/methodology/approach

This article explores the impact of customer loyalty and employee engagement on corporate performance, and identifies how these qualities can be quantifiably measured by sophisticated mathematical indexes. To do this, the authors review the factors that contribute to form corporate reputation, and how this formation process has changed over time. It places special emphasis on how senior corporate leaders have conceded branding power to employee and customer stakeholders.

Findings

By highlighting the promising early successes of companies leading this research, this paper demonstrates the potential advantages effective use of customer loyalty and employee engagement indexes can return. By acknowledging the power of these indexes, companies have the unique capability to build integrated communications solutions that address the expectations of both employees and customers, the two most contributory groups in building brand strength.

Originality/value

By shedding light on changes in the modern marketplace, this article can help shape thinking on effective ways to leverage human capital in order to maintain and grow brand and reputation.

Keywords

Citation

Gonring, M.P. (2008), "Customer loyalty and employee engagement: an alignment for value", Journal of Business Strategy, Vol. 29 No. 4, pp. 29-40. https://doi.org/10.1108/02756660810887060

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited