(PRLEAP.COM) Businesses that understand engagement, the emotional bond between customers and employees, are more profitable. However, most companies battle over quality and price rather than focus on building an emotional connection with employees and customers. The power of engagement, its critical components and why it is important, is examined in “Discover Engagement,” a new White Paper available from Allegiance, the leader in Enterprise Feedback Management.

Engagement is defined as a deep relationship that employees and customers develop through repeated experiences and interactions with a company accumulated over time. Businesses with engaged employees and customers experience reduced employee turnover and training costs and receive price premiums and positive word-of-mouth from customers.

Through a process developed by experts, including Ph.D.s, statisticians and loyalty consultants, Allegiance identifies the drivers of employee and customer engagement. The paper also discusses three engagement challenges faced by businesses, which include:

Most companies deal with problems after they happen. To overcome this, companies need to collect and review feedback and survey data regularly from both employees and customers. This will allow them to spot problem areas before they negatively affect sales or profits.

Many organizations do not allow information to be readily available and shared. Typically, several departments within an organization collect data, whether it is human resources, marketing, sales, etc. All information should be accessible from a central repository, including everything from branch performance data to customer attitudes toward a new program.

Businesses often collect data, but few actually link it to business outcomes. For example, does an increase in customer satisfaction actually result in an increase in sales or profits? How does employee training impact employee retention? Metrics and measurement tools should be available to track and report on the impact of all activities on business performance.

“Companies that make engagement fundamental to their business cannot be touched by competitors. They enjoy more profits during tough times and grow faster during good times,” said Adam Edmunds, CEO of Allegiance. “It truly presents an untapped opportunity just waiting for those that understand its potential.”

The White Paper was authored by Allegiance experts Gary Rhoads, Ph.D. and David Whitlark, Ph.D. To download the full paper, visit www.allegiance.com/discoverengagement.