Leadership e-Tip 3: Does Leadership Affect Customer Loyalty?

As an associate with Integro Leadership Institute I would like to share these thoughts about leadership by all employees.

Just imagine what your business would be like if every customer was not only loyal to you, they also rave about you to their friends and family and insist they should do business with you as well.

Here is Keith Ayers’, President of Integro Leadership Institute, point of view on what customer loyalty.

For over 20 years prior to my move to the United States in August 2001, every car I purchased had come from the same dealership, Col Crawford Motors… a total of 13 cars including those bought for my family and our business. Yes, they sold good cars including BMW, Honda, and Nissan; but everyone I dealt with in the organization was a delight to deal with.

Every time I had a car serviced, the service department called the next day. Not to plead with me to give them a good rating when the manufacturer sent me a survey, but to make sure that I was happy with all aspects of the service. They never even mentioned the survey, but of course when it came, I gave them the highest possible ratings.

Why was I so passionate about doing business with them? Because every employee I dealt with was passionate about the company and committed to fulfilling the organization’s purpose: “to ensure that our customers receive only the finest ongoing service throughout the ownership of every vehicle sold.”

How do you get employees to be so passionate?

Employees become passionate about giving great value when their leaders are also passionate about the organization’s purpose, and they know how to get the best performance out of every team member. These leaders know that when they create a work environment in which everyone wants to excel, their team will deliver customer satisfaction that your competitors cannot match.

Why are the front line leaders so passionate about the organization’s purpose and committed to providing exceptional leadership? Because their executive team is also passionate about and committed to the organization’s purpose. The executive team actually works as a team, putting the interests of the organization and its customers ahead of their own departmental goals or personal needs.

Customer Loyalty is an Inside Job

Customers become loyal when they believe that they are getting great value. Think about your favorite restaurant that you go back to again and again. The food is great, the service is great… in fact it is just a great experience to go there, even if it is a bit of a drive to get there, and it may be more expensive other similar restaurants.

Why would you go out of your way to go to a more expensive restaurant than the one across the street? Because of the “value” you get. The more value you perceive you are getting, the more loyal you become, and the more you are willing to pay.

It is the employees in your organization who produce the products and provide the services who determine the “value” your customer’s experience, and therefore how loyal they will be.

It is the leaders in your organization who create the environment that determines whether employees want to and can deliver that value to the customer.