Influence of Personnel Loyalty on Customer Loyalty Formation

The main objective of this research is to define role of personnel loyalty on effective functioning of the company, to reveal the impact of customer loyalty on firm`s incomes, and to measure the influence of employee`s loyalty on the formation of client loyalty. The study based on a mixed methodology that includes both qualitative and quantitative analysis methods. The first qualitative data on staff loyalty in each company will be obtained by using semi-structured interviews with managers of company under study. To formalize qualitative data, staff loyalty will be measured by using a questionnaire and questioning the same people. Next step is questionnaire interview of customers to measure their level of loyalty to company under study. With customer loyalty formation factors as well as customer loyalty attributes being considered (satisfaction, willingness to recommend, willingness to make a repeat purchase). Data analysis based on factor analysis allows us to identify the most significant factors affecting customer loyalty in both companies. Further calculation of the Spearman correlation and regression analysis between the values of managers' loyalty and customer loyalty can show us the level of interconnection between them. The results of this project can show us how to create highly effective symbiosis of these two loyalties and enlarge long-term profitability to a company. The research can be useful for HR Departments of large companies, which want to improve customer focus of their employees. Key words: customer loyalty, staff loyalty, customer loyalty attributes, customer satisfaction.