Loyalty works in both directions...

The current global financial crisis has led many companies to reduce expenses by cutting back payrolls. Not everyone though. There are a few employers who are staying Loyal to their employees.

One such company is The Container Store. As of mid-January, they have never had a layoff in their entire history.

While most of the retail sector was hit hard during last year's fourth quarter, The Container Store actually saw its November and December earnings increase over 2007. Can it be that engaged loyal employees do in fact make the difference when it comes to creating engaged Loyal customers? We think so.

The Container Store stuck by their planed expansion strategy even in the face of the downturn. The opened four new stores last year, and grew their workforce by almost 2%.

Great companies know that employee engagement and growth is driven by investment. So it should come as no surprise that The Container Store chooses to invest heavily in their employees. Each employee will get an average of 241 hours of training per year.

The Container Store chose to deal with the current economic difficulties by co-developing a plan with it's employees. Famous for its "open door" communication-driven culture, Container Store asked employees to do all they could to ensure the company's strength during a tough retail climate. A recent note to staff from president Melissa Reiff read: "We have to be more responsive, more adaptable and much more efficient with our resources."

As a result of staff input and cooperation, The Container Store has avoided layoffs by freezing salaries and implementing employee suggestions that help positively impact the balance sheet.

By demonstrating their commitment to the relationship, The Container Store continues to enjoy what some say is the best retail sales force in the industry. Loyalty works.

Loyal Customers Drive Subaru's Success

Time Magazine recently posted an article on Subaru's success, while fellow automakers are struggling in this troubled economy. Subaru has increased both its sales and market share over this time last year. Loyal customers seem to be behind this incredible success story.

http://www.time.com/time/business/article/0,8599,1871101,00.html

The article talks about the "oddball" nature of Subaru's Loyal customers. As a Subaru owner myself, I admit that we may resemble raving fans, but we have good reason to recommend our brand of car. If I can't handle shoveling, I can just drive through the snow. And trust me, with the winter we're having in New England this year, that is an amazing ability to have. Driving down Commonwealth Ave. or Beacon Street in the winter time is just like off roading- too many potholes to avoid. I'm not afraid of getting stuck in one. Point being, my Subaru hasn't let me down yet and for that alone, I'm Loyal and will recommend it to anyone. Now some might argue that my car is lacking in some of the extras, but I've got a remote starter, so I get into a warm and cozy car even on the coldest of mornings. I also have seat warmers, which is the greatest invention ever. My experience with the sales and maintenance folks was and is always pleasant. All in all, Subaru hits on all the dimensions that make up a Loyal relationship.