The Benefits and Lost of Customer Loyalty

There are two types of customer loyalty.One is loyalty to employees,the other is loyalty to companies. There is mainly customer loyalty to the staff existing in many chinese industrial and service companies,and this loyalty may disturb the development of companies.What is the relation between Customer's Loyalty to Employees and company's performance? A lot of Chinese companies are facing this question.This paper summarizes the research, raises a model and makes an Empirical Study.We find that loyalty to companies could increase the customer's willingness to pay a price premium and Loyalty to employees could directly and indirectly promot customer's loyalty to company,selling efficiency,but it also increase the customer losing risk.Employees information sharing could mediate the relation between LE and risk.So company could decrease the risk caused by LE through increasing information sharing to promote the performance.