In an era where brands are increasingly focused on customer-centricity, a critical yet overlooked factor in building loyalty is the experience of employees themselves. Employee Experience (EX), when optimized, creates a ripple effect that strengthens Customer Experience (CX)—and ultimately sustains long-term loyalty. Yet, for too long, EX, CX, and Loyalty have been operating in organizational silos.
Loyalty isn’t just a transactional outcome—it’s an emotional connection, and that connection is built not only with customers but also with the employees delivering the experience.
Compounding this reality is a generational shift. With five generations actively in the workforce today, organizations that fail to recognize how generational dynamics impact EX will inevitably see the same loyalty gaps internally as they do externally with customers.
The time has come for brands to align EX, CX, and loyalty marketing into a unified strategy to maximize both workforce engagement and customer advocacy.
The Generational Link Between EX and Loyalty
Historically, loyalty programs have been customer-first, focusing on transactions, rewards, and personalization strategies. But what if we reframed loyalty not just as a customer behaviour—but as an organizational outcome?
Loyalty marketing already leverages demographic and psychographic segmentation to understand consumer behaviors, yet brands rarely apply that same generational intelligence to their employee engagement strategy. Just as customers expect personalized brand experiences, employees expect a workplace that recognizes their unique values, motivations, and expectations.
Consider the workforce through a loyalty lens:
- Gen Z & Millennials thrive on technology, purpose-driven work, and continuous learning—yet they also have the highest attrition rates when expectations aren’t met.
- Gen X & Boomers prioritize stability, trust, and meaningful contributions—factors that, when ignored, erode their long-term loyalty to an employer.
- Traditionalists, though mostly retired, remain active in some industries—either due to economic necessity, increased longevity, or a deep personal commitment to work. Those still engaged in the workforce value loyalty, respect, and legacy-building, making knowledge transfer and mentorship critical factors in their ongoing contribution.
- All generations expect seamless digital experiences, inclusivity, and alignment between employer values and brand promises.
These are the same behaviours we see in customer loyalty—where digital-first, values-driven younger consumers are more likely to try new brands but will attrite quickly if the experience is inconsistent, while older generations favour long-term brand relationships when trust is maintained.
If organizations are investing millions in mapping customer journeys, personalizing experiences, and reducing churn, why aren’t they applying the same rigor to the workforce experience?
Generational Trends in Loyalty & the Workforce
We’re living in a multi-generational reality. The same defining characteristics that shape consumer behaviours also influence workforce engagement. Here’s what leading brands need to recognize:
- Traditionalists (Born 1925–1945) – Though mostly retired, some continue to shape corporate decision-making as board members, advisors, and legacy leaders. Their emphasis on loyalty, discipline, and long-term relationships remains a guiding force for many industries.
- Baby Boomers (Born 1946–1964) – Value stability, mentorship, and deep brand trust. When engaged, they become highly loyal employees and customers, but they expect recognition for their contributions and experience.
- Gen X (Born 1965–1980) – Pragmatic, independent, and adaptable. Often balancing senior leadership roles and caregiving responsibilities, they are critical to business continuity and long-term strategy.
- Millennials (Born 1981–1996) – Purpose-driven, collaborative, and tech-savvy. They seek flexibility and values alignment both in the workplace and as consumers—loyalty to brands (or employers) is tied to shared purpose.
- Gen Z (Born 1997–2012) – Digital natives who prioritize authenticity, innovation, and inclusivity. They explore new brands freely but churn quickly if expectations aren’t met. The same applies to employers—engagement must be continuous to sustain loyalty.
Looking Ahead: The Influence of Gen Alpha
While not yet in the workforce, Gen Alpha (Born 2013–2025) will redefine expectations in both consumer and workplace engagement. As the most tech-immersed, globally connected generation, they will push businesses to integrate AI, automation, and next-gen digital experiences at an unprecedented pace. Their expectations for seamless omnichannel engagement will challenge brands to rethink both CX and EX strategies.
It’s time, now, to view generational diversity as an important player in EX and its impact on sustainable CX success and brand loyalty.
EX as the Foundation for CX and Brand Advocacy
The Wise Marketer Strategy Brief (published January 2025) emphasized that modern loyalty requires a holistic approach, integrating UX (User Experience), CX (Customer Experience), and EX (Employee Experience). And this is true, yet organizations expect employees to deliver exceptional CX without first ensuring that they themselves are engaged, empowered, and aligned with the brand promise.
A disengaged workforce leads to:
- Inconsistent brand experiences—if employees don’t feel connected to the mission, neither will customers.
- Customer churn—poor service interactions are one of the top drivers of customer attrition.
- Erosion of brand trust—misaligned EX and CX cause customers to doubt brand authenticity.
An optimized EX strategy fuels:
- Better customer experiences—employees who feel valued deliver superior service.
- Stronger advocacy—engaged employees become brand ambassadors, driving word-of-mouth loyalty.
- Higher customer retention—consistent, positive experiences increase brand trust and emotional loyalty.
It is clear that a direct link exists between the employee experience and customer loyalty.
Case Study: How Employee Experience Transformed Loyalty in Hospitality[1]
Background
The Stafford Collection, a luxury hospitality brand, faced a common challenge in the service industry: high employee turnover, inconsistent customer experiences, and disengaged staff. While the company had a strong focus on customer loyalty, it became evident that frontline employees were the key to sustaining long-term brand advocacy.
Challenge
Despite investing in customer experience (CX) initiatives and loyalty programs, The Stafford Collection found that guest satisfaction scores fluctuated depending on staff engagement levels. High employee turnover led to knowledge gaps, inconsistent service delivery, and increased hiring and training costs.
Without a strong Employee Experience (EX) foundation, even the best customer-facing programs failed to deliver a consistent, high-quality brand experience.
Solution: Employee Engagement as a Loyalty Driver
Recognizing the direct link between EX and CX, The Stafford Collection implemented the Empowered Program, a workforce engagement strategy designed to:
- Give employees a stronger voice in decision-making
- Enhance recognition and training opportunities
- Improve internal communication and career development
Results
- 93% of employees participated in the engagement survey—indicating high levels of investment in their workplace experience
- Employee retention improved significantly, reducing hiring and training costs
- Customer satisfaction scores increased, reflecting more consistent and personalized service
- The return on investment was achieved within 90 days, proving that EX-focused initiatives can have an immediate business impact
Key Takeaway
By shifting its focus from just customer loyalty to employee engagement and allowing team members from all generational cohorts to have a voice, The Stafford Collection successfully strengthened its CX strategy, reduced turnover, and increased customer retention. This case reinforces a fundamental truth: when employees feel valued, engaged, and aligned with the brand’s mission, they don’t just provide better service—they create lasting customer loyalty.
How Forward-Thinking Brands Are Redefining Loyalty
Organizations that embrace EX as a core pillar of loyalty strategy are reaping the benefits. Here’s how leading brands are making the shift:
- Breaking Down Silos Between EX, CX, and Loyalty
- Aligning HR, marketing, and customer experience teams to create a cohesive brand experience.
- Integrating employee insights into CX design to ensure authenticity and alignment.
- Leveraging Generational Intelligence in Workforce Engagement
- Designing personalized EX strategies to match the needs of different generational cohorts.
- Recognizing that loyalty behaviours in customers mirror those in employees—and applying retention tactics to both.
- Prioritizing EX to Drive Brand Advocacy
- Investing in training, empowerment, and recognition to turn employees into brand advocates.
- Measuring employee Net Promoter Scores (eNPS) alongside customer loyalty metrics.
The Future of Loyalty: Connecting EX, CX & Brand Promise
As loyalty shifts from transactional to relational, the brands that win long-term loyalty will be those that create a seamless, authentic connection between employees and customers.
- Your best customers are often your employees.
- Your best brand advocates sit inside your organization.
- Your strongest loyalty strategy starts with EX.
Our white paper, Generational Experience: Unlocking the Power of Generational Diversity for Long-Term Success, dives deeper into the impact of EX on brand loyalty and how organizations can build a workforce experience that fuels customer advocacy.
[1] HSMAI Americas, Transforming Employee Engagement in the Hospitality Industry [2024]