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Employee attitude matters more than advertising

December 2, 2009 By 2 Comments

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Companies spend so much on acquiring new customers, hiring the best talent possible, taking chances on innovative marketing concepts. But engaging employees often seems to a stepchild, loved, but in a less passionate way.

Given the influence of employees on customer loyalty, maybe the priorities need to be altered. At yesterday’s Conference Board conference Engelina Jaspers, HP’s vice president of corporate marketing, shared three stats that can help focus management’s attention on employee engagement:

  1. 68 % of customers leave a company because of poor employee attitude
  2. 41% of customers are loyal because of good employee attitude
  3. 70% of brand perception determined by experiences with people from the company

Brian Ray of McDonald’s is quantifying the value of committed employees in revenue and profitability for McDonald’s owners/operators. (85% of McDonald’s are franchises), and has just completed an project to create an employee value proposition.

(So interesting that every company seems to have a customer value proposition and mission, but not so for employees.)

To develop this “EVP” McDonald’s spent just $65,000 and asked two simple questions, which got an amazing 79% response rate from frontline workers in 33 countries:

  • What do you love about working for McDonald’s?
  • What do you love the least about working for McDonald’s?

What do your employees love the most and least about your company?  These two simple questions asked at least annually can provide the insights you need to understand how to make your employees your best marketing advocates.

Filed Under: Advertising, Communicating, Research, Word of mouth Tagged With: , , , ,

New online community study: what's working, what's in the way, advice from trenches

July 16, 2008 By 3 Comments

Today my firm, Beeline Labs, Deloitte, and the Society for New Communications Research released highlights of an online communities study among 140 organizations which create and maintain communities. Some of the highlights, more of which can be found here:

Greatest value of communities:

  • increasing word of mouth (35%)
  • increasing brand awareness (28%)
  • bringing new ideas into the organization faster (24%)
  • increasing customer loyalty (24%)

Greatest obstacles

  • getting people involved in the community (51%)
  • finding enough time to manage the community (45%)
  • attracting people to the community (34%)

What contributes most to effectiveness:

• ability for community members to connect with other like-minded people: 54%
• ability for members to help others: 43%
• focusing community  around a hot topic or issue: 41%
• quality of the community manager/community management team: 33%

Advice for others

When asked what their most important piece of advice is for others creating communities, survey participants’ advice focused around these eight areas:

1.    Start with the end in mind: “Start with a business strategy, defining carefully what you want to accomplish through the community.”

2.    Focus on the value to the members:  “Make sure you deliver real, special, unique, obvious value to the core group you’re hoping to attract.”

3.    Don’t start with the technology: “Too often people get drunk with Web 2.0 tool excitement and then try to push their business and customer goals into the wrong tool.”

4.    Keep it simple and intuitive:  “Focus on the least common denominator first. Keep it easy to navigate with simple tools to use.”

5.    Keep it fresh and active:  “Keep activity levels up, constantly add new content.”

6.    Have dynamic community leaders: “Make sure you devote enough time to managing the community; letting it fester is worse than not having it in the first place.”

7.    Think through who to involve – or not. “Get Legal and PR to buy-in and help on design, but keep them out of active management.”

8.    Get a passionate core of participants active before launching:  “Make sure you have a committed core of passionate users before you launch.”
Many thanks to everyone who took the time to take the survey and talk to us as part of the qualitative surveys. The complete results are on their way to you this morning.

Filed Under: Communities, Research, Social media strategy, Word of mouth Tagged With: , , , ,