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Employee Engagement and Ambassadorship - Beyond Philosophy Webinar


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Employee Engagement and Ambassadorship - Beyond Philosophy Webinar

  1. 1. Linking Employee Engagement and Employee Ambassadorship Driving A Successful Customer-Centric Culture Through Employee Commitment to the Company, the Value Proposition, and the Customer
  2. 2. Your Beyond Philosophy hosts… Colin Shaw Founder & CEO Michael Lowenstein Principal
  3. 3. We are Customer Experience Thought-Leaders 3 We work globally with offices in London and North America; with associate experience in Middle East, Africa, India & Asia Customer Experience is all we do! Customer Experience is all we do.. Since 2002! Thought leadership is our differentiator. We have written 4 books We are an evidence based consultancy We maintain links with academia to keep us ahead of the latest trends We focus on the emotional and subconscious side of customer experience i.e. we are experts in this area Beyond Philosophy © All rights reserved. 2001-2013
  4. 4. 4 We have dealt with many large organisations Beyond Philosophy © All rights reserved. 2001-2013
  5. 5. Increase in Net promoter Score: “As a result of its customer experience efforts, NPS has improved from -10 to +30” Increases shipping volume. “Maersk correlated a 4 point increase in Net Promoter Scores with a 1% increase in additional volume shipped by customers”. Training improves Net Promoter Scores in local regions. “The 55 regions that have set up local councils also received a three-day training course in customer experience improvement methods. The result: of participating local offices showed a 10 points higher score on their NPS than those offices that opted out”. Beyond Philosophy © 2001-2012 All rights reserved.
  6. 6. www.beyondphilosophy.com6 EMOTIONAL Based on Trust • Sense of personal relationship with brand or company • Reinforced by service experiences • Supported by customer touch points RATIONAL Based on Satisfaction • Relationship based on meeting functional expectations • Reinforced by ongoing performance quality • Value for the money RATIONAL CONNECTION EMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Customers
  7. 7. EMOTIONAL Based on Trust and Commitment • Sense of personal relationship with company • Participation and contribution, belief in direction • Alignment with culture and values • Opportunities for advancement and growth • Recognition and reward • Accomplishment RATIONAL Based on Satisfaction • Salary and benefits (including training) • Safety and environment • Opportunities for advancement and growth RATIONAL CONNECTION EMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Employees
  8. 8. Linkage of Stakeholder Groups Customers who actively (vocal, level of favorability, reduced consideration set, etc.) express their personal commitment to a supplier can be strongly positive (advocates), neutral, or negative (saboteurs). Employees, similarly, can significantly impact customer loyalty behavior toward their employer through a range of attitudes and behaviors on behalf of the brand, company and customer. These attitudes and behaviors, like customers, can range from highly positive, to indifferent, to highly negative.
  9. 9. www.beyondphilosophy.com9 The Role of People… Why They Can Be So Critically Important 70%41%68% …of customers LEAVE because of poor employee attitude …of customers are LOYAL because of a good employee attitude …of customer brand perception is determined by experiences with PEOPLE UK retailer: 1% increase in employee commitment = 9% increase in monthly sales Enterprise IG Source: Parkington and Buxton, Study of the US Banking Sector, Journal of Applied Psychologyy Source: MCA Brand Ambassador Benchmark Source: Ken Irons, Market Leader
  10. 10. www.beyondphilosophy.com10 Why Do Customers Stop Doing Business With a Firm? Why Do Companies Lose Customers? • Customers who complain to an organization and have their complaints satisfactorily resolved, tell an average of 5 other people about the good treatment they received, and 20 people if they receive poor treatment. • Of the customers who register a complaint, between 54% and 70% will do business with the organization again if their complaints are resolved. This figure goes up to 95% if the customers feel the complaints are resolved professionally, quickly and proactively, depending upon both systems and positive employee attitudes and behaviors. The Technical Assistance Research Program (TARP) studies show:
  11. 11. www.beyondphilosophy.com11 Further Proof Points of Employee Attitude/Action Linkage to Customer Behavior Northwestern University: Study in hotel chain showed that, for ‘The extent to which employees try to satisfy customers’, a 10% increase in this factor resulted in a 22% increase in customer spending per hotel visit. Sears: Study in 800 stores showed that a 5 percent documented improvement in employee attitudes toward their jobs and commitment to the company directly resulted in a 1.3% increase in customer perceptions toward the retailer and, in turn, a .5% increase year-over-year revenue. Royal Bank of Canada: Studies have shown that level of employee commitment accounts for 60% to 80% of customer satisfaction; and 40% of the difference in how customers view RBC’s services can be linked directly to their relationship with bank staff.
  12. 12. Customer-Employee Perceptual Gap Profiling A Customer-Centricity Two-Sided ‘Mirror’
  13. 13. www.beyondphilosophy.com13 Conceptual Model of Service Quality (Berry/Parasuraman/Zeithaml SERVQUAL Model, Updated in 2000) Word-of-Mouth Communications Personal Needs Expected Service Perceived Service Service Delivery Service Quality Specifications Management Perceptions of Customer Expectations CUSTOMER PROVIDER Past Experience External Communication to Customers GAP 1 GAP 5 GAP 3 GAP 2 GAP 4
  14. 14. Employee ‘Mirror’ Research: Customer-Supplier Perceptual Gap Profiling Valuable staff debriefing device Counterpoint for customer research findings; adds significant, unique insight Alignment determination is foundation for training and process improvement Can be utilized for employee incentive and motivation programs Effective for staff communication continuity
  15. 15. 15 Purchasing Agents Sales Mgmt Marketing Mgmt Perceptual Gap Profile Purchasing Agents vs. Sales Mgmt vs. Marketing Mgmt 1. Consistent product/service quality * Based on % high (5) performance ratings on a 5-point scale 0% 40% High Performance* 50% 60% 70%30%20%10% 2. On-time performance/delivery 3. Knowledge of needs & requirements 4. Proactive communication 6. Accurate billing 7. Competitive pricing 8. Quick, responsive problem solving 9. Accessibility of supplier contact/ service staff 10. Attention to details 11. Rapport/relationship with supplier 12. Knowledge/expertise of supplier contact staff 13. Value-added service support 14. Ability to anticipate your needs 15. Dependability of supplier contact staff 16. Flexibility and adaptability of supplier 17. Availability of multiple communica- tion channels with supplier 18. Availability of multiple purchase channels 5. Speed of follow-up: requests/inquiries
  16. 16. Measuring Customer and Staff Alignment 0% 20% 40% 60% 80% 100% Product, Service Knowledge Interest in My Needs, Goals Follow-through on Problems Responsiveness Makes Me Feel Part of a Special Group Anticipates My Needs Inspires My Trust Gets Answers Quickly Staff All Customers HNW Customers Significant misalignment * Based on % 6/7 performance ratings on a 7-point scale
  17. 17. Perceived Performance Gap Profile Staff vs Special Education vs Mainstream Subject Areas High Performance* Special Education MainstreamStaff 70% 90%50%30%10% * Based on % high (5) performance ratings on a 5-point scale 1. Simplicity of materials 2. Appropriateness of materials for reading levels 3. Overall cost 4. Responsiveness to service requests 5. Shipment accuracy 6. Range of mainstream materials available 7. Range of remedial materials available 8. Effectiveness in helping reach teaching goals 9. Overall graphic content 10. Contemporary nature of material 11. Speed of order delivery Overall Performance
  18. 18. Mirroring (Overall) – Satisfaction with Performance Areas 67% 42% 28% 53% 47% 50% 40% 38% 53% 58% 40% 49% 36% 39% 35% 35% 44% Service quality/Netw ork reliability Service management or problem resolution Pricing Technical support staff Service activation or installation Sales or account management Ordering/Booking Billing or invoicing Overall reputation Q820 How satisfied or dissatisfied, overall, do you feel LLL’s external customers would say they are with the organization’s performanceon . . . ? Base: Employees– Total (n=4552); Group A – Total (n = 69-101); Group B – Total (n=239-260)  Chart displays Top 2 Box Scores (ratings of “6” or “7”) 35% 38% * Employee Rank Ordering of Importance(#1) * Top 2 Box score from employees. Note: Attributes are rank-orderedby CMG/WMG/EMGimportance. 14% 36% 33% 16% 20% 30% 19% 2 7 4 6 8 9 3 1 5 Top 2 Box score from employees overall. Top 2 Box score from Group A customers,overall. Top 2 Box score from Group B customers, overall. The importance employeesthink customersattach to the specified attribute/area.
  19. 19. Employee Mirroring: Customer Need Importance Perceptual Gaps Relative Importance Of Issue .00 .10 .20 .30 Product Reliability Tech Support Customer Service Product Features Customers Employees Actual vs. Perceived Customer Needs
  20. 20. Employee Satisfaction, Values, and Loyalty Employee Engagement and Alignment Employee Commitment and Ambassadorship (Advocacy) Employee Attitudes and Behaviors Research Employee Research Approaches
  21. 21. Definitions of Employee Research Concepts and Methods Employee Satisfaction and Loyalty – Identifies employee attitudes and behaviors leading to job satisfaction and employer loyalty Employee Engagement and Alignment – Identifies employee attitudes and behaviors leading to agreement with, and belief in, overall company mission and objectives, as well as ‘fit’, or alignment, and productivity within organizational culture Employee Ambassadorship – Identifies the most active level of employee commitment to the company’s product and service value promise, to the company itself, and to optimizing the customer experience. It is linked to, but distinctive from, the productivity and empowerment elements of employee satisfaction, engagement, and alignment research because its emphasis is building customer bonds through employee interaction.
  22. 22. Customer Commitment and Advocacy Optimizing Customer Experience and Relationships Linking Customer and Employee Commitment to Business Results Strong Correlation Weak and Intuitive Correlation Customer Loyalty TQ and Satisfaction C U S T O M E R R E S E A R C H E M P L O Y E E R E S E A R C H Employee Commitment and Ambassadorship Employee Engagement and Alignment Employee Satisfaction & Loyalty Now Now 1990’s 1990’s 1980’s and earlier 1980’s and earlier
  23. 23. Many Ways to Define Employee Engagement Analysis conducted by The Conference Board in 2006 showed that, among twelve leading engagement research companies, there were 26 key drivers, of which eight were common to all: - Trust and integrity – How well do managers communicate and 'walk the talk‘? - Nature of the job – Is it mentally stimulating day-to-day? - Line of sight between employee performance and company performance – Do employees understand how their work contributes to the company's performance? - Career growth opportunities – Are there opportunities for growth within the company? - Pride about the company – How much self-esteem do the employees feel by being associated with their company? - Coworkers/team members – How much influence do they exert on the employee’s level of engagement ? - Employee development – Is the company making an effort to develop the employee's skills? - Relationship with one's manager – Does the employee value relationship(s) with manager(s), and is there trust and credibility between the levels? Typically, little or no mention/inclusion of ‘customer’ or ‘customer focus’ in measures or analysis of employee engagement. Though customer experience, and resultant behavior, is impacted by engagement, it tends to be more tangential than purposeful in nature.
  24. 24. Building Our Framework/Model: The Two Components of Engagement Commitment to Company - Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), and to being a contributing, and fully aligned, member of the culture. Commitment to Value Proposition - Commitment to, and alignment with, the mission and goals of the company, as expressed through perceived excellence (benefits and solutions) provided by products and/or services
  25. 25. Employees That Score High on Commitment to the Company and The Value Proposition Are Considered Engaged Company Value Proposition Engaged
  26. 26. The Three Components of Employee Ambassadorship Commitment to Company - Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), and to being a contributing, and fully aligned, member of the culture. Commitment to Value Proposition - Commitment to, and alignment with, the mission and goals of the company, as expressed through perceived excellence (benefits and solutions) provided by products and/or services Commitment to Customers - Commitment to understanding customer needs, and to performing in a manner which provides customers with optimal experiences and relationships, as well as delivering the highest level of product and/or service value.
  27. 27. Employees That Score High on Commitment to the Company, The Value Proposition, and the Customer Are Considered Ambassadors Company Customer Value Proposition Ambassador
  28. 28. Employee Commitment Categories Employee Ambassadors (Advocates) – the most active level, representing employees who are strongly committed to the company’s brand promise, the organization itself, and its customers. Also, and importantly, they behave and communicate in a consistently positive manner toward the company, both inside and outside. Positive Loyalists – employees who exhibit positive feelings about their job and emotional kinship with the company. They are favorable about the company, overall, have every intention of remaining with the company, and actively and positively perform on its behalf. Though their communication about the company to others is infrequent to nil, when they do communicate, the messages are largely positive. Indifferents– employees who are generally satisfied with their jobs but rather ambivalent to mildly positive about the company overall, their relationship with it, and its products. They may communicate some generally positive messages about the company to others, but rarely and inconsistently. Disinterested Seatfillers – employees who, because of their lack of interest, favorability toward or kinship with the company and its products, either do not communicate positive messages about the company internally or externally, or do not communicate at all. For these minimally involved members of staff, employment with the company is ‘just a job’, and very little more. Employee Saboteurs – employees who, though still drawing a paycheck from the company, are active, and frequently vocal, detractors about the organization itself, its culture and policies, and its products and services. These individuals are negative advocates, communicating their low opinions and unfavorable perspectives both to peers inside the company and to customers, and others, outside the company
  29. 29. Comparisons of Key Results Fram & McCarthy Employee Brand Champions and Employee Ambassadorship Low to High Brand Loyalty (Difference in % Points) Saboteur to Ambassador (Difference in % Points) Attitudes Toward Employer • Organization is well-managed +27 +62 • Like the company +32 +65 • Proud to work for company * +20 +64 (Comparative) Attitudes Toward Employer’s Products/Services • Number of product/service features +20 +30 • Overall product/service quality +32 +33 • Overall value of products/services +27 +37 • Perceived prestige of organization +24 +36 * = Element of employee ambassador technique
  30. 30. Mirroring Diagnostic Elements (Top 2 Box Scores – 7 Point Scale) Employee Ambassadors were dramatically more likely to rate Las Vegas Hotel/Casino highly when compared to Saboteurs 41% 38% 40% 44% 49% 38% 43% 73% 71% 79% 84% 71% 7% 8% 9% 11% 5% 34% 44% 33% 25% 37% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Guests are committed to continuing their relationship with the hotel Guests are loyal hotel customers PercentTop2Box Guests would continue to stay at the hotel because of the high level of personal service they receive Guests would continue to stay at the hotel because of the fun and fulfilling experience it provides Guests All Employees Employee Ambassadors Employee Saboteurs Guests would continue to stay at the hotel because of the value of what they receive for the price Guests would continue to stay at the hotel because of the exceptional quality of the experience
  31. 31. Swing Voter Analysis of Employee Ambassadorship “Swing voter analysis” for employees, as it does in politics, deals with how to move the undecided and leaning “voters” into the desirable camp and how to avoid moving them into the undesirable camp. In multivariate terms, this approach is the same as discriminant function analysis In this case the desirable camp is the Employee Ambassador group and the undesirable camp is the Employee Saboteur group. In particular, this analysis shows how to move the Indifferents, the middle group, into the Ambassador camp. It also shows which attributes put at risk the same middle group, the Indifferents, that are closest to becoming Saboteurs
  32. 32. Saboteurs Indifferents Employee Ambassadors What turns indifferent employees into ambassadors? What turns indifferent employees into saboteurs? Ambassador/Saboteur ‘Swing Voter’ Analysis (Discriminant Function Analysis)
  33. 33. Swing Voter Analysis Importance Scores for Selected Attributes (“Swing Up” To Ambassadors, “Swing Down” To Saboteurs) Swing Up Swing Down I trust the hotel 28% 4% My work gives me a sense of personal accomplishment 8% 4% The hotel is focused on attaining the highest quality possible 7% - Overall value of service provided 6% 23% I very much enjoy doing my job 6% 10% I feel a lot of stress at work 6% 6% The hotel is very loyal to its employees 6% 2% My immediate supervisor 4% - The hotel will do whatever it takes to makes guests happy 4% - I have a clear understanding of the hotel’s mission, goals, and objectives 2% 13% The extent of diversity of co-workers - 8% I am very committed to my work 2% 5% Delighters Dissatisfiers Dual effects
  34. 34. Ambassadorship Groups By Selected industries (Sorted by % Ambassadors) Total Base = 4,312 Industry N >/= 70) Industry Unconnected Indifferent Ambassadors Total N Total % Religious /Non-Profit Organizations 12.8 55.6 31.6 117 100 Construction (heavy/special trades) 24.3 47.3 28.4 74 100 Legal Services 26.4 50.6 23.0 87 100 Insurance 23.2 58.5 18.3 82 100 Banking and Finance 28.2 55.0 16.8 131 100 Healthcare and Social Assistance 27.3 56.2 16.5 557 100 Engineering Services 31.5 52.2 16.3 92 100 Other Services 32.5 51.2 16.3 166 100 Education 25.2 58.5 16.2 702 100 Technology Services 25.5 59.1 15.4 149 100 Retail Trade 36.9 51.2 11.8 287 100 Arts, Entertainment, and Recreation 22.9 65.7 11.4 70 100 Public Administration /Government 30.5 58.7 10.8 223 100 Accommodation and Food Services 36.0 53.5 10.5 114 100 Manufacturing 37.5 52.9 9.6 293 100 Telecommunications 31.1 59.5 9.5 74 100 Transportation and Warehousing 40.0 51.0 9.0 100 100 Administrative Support Services 36.5 58.4 5.1 137 100
  35. 35. Relevant and Actionable Validation Leveraging Employee Ambassadorship
  36. 36. Employee Loyalty* By Ambassadorship Group Saboteur Indifferent Ambassador Total Low 61.0 3.2 0.0 19.8 Medium 38.5 84.3 27.3 61.9 High 0.5 12.5 72.7 18.3 Total 100 100 100 100  Overall, how would you rate your organization as a place to work?  If a friend or a family member were to consider applying for a job at your organization, how strongly would you recommend it as a place to work?  I feel very loyal to my organization. * PLS factor of the following three metrics:
  37. 37. How Often Say Good Place/Bad Place To Work by Ambassadorship Groups Saboteur Indifferent Ambassador Total Rarely/Never 55.5 7.0 0.9 20.4 Sometimes-Very Often 42.4 63.6 13.4 49.6 Almost Always/Always 2.1 29.4 85.7 30.1 Total 100 100 100 100 Good Place To Work Bad Place To Work Saboteur Indifferent Ambassador Total Rarely/Never 50.5 86.5 98.1 77.7 Sometimes-Very Often 42.3 13.0 0.7 19.8 Almost Always/Always 7.1 0.5 1.2 2.6 Total 100 100 100 100
  38. 38. How Often Say Good/Bad Products/Services by Ambassadorship Groups Saboteur Indifferent Ambassador Total Rarely/Never 46.0 7.9 1.6 18.1 Sometimes-Very Often 50.3 65.7 20.1 54.1 Almost Always/Always 3.8 26.5 78.2 27.8 Total 100 100 100 100 Saboteur Indifferent Ambassador Total Rarely/Never 64.9 88.9 97.3 83.1 Sometimes-Very Often 31.6 10.5 1.0 15.3 Almost Always/Always 3.5 0.5 1.6 1.6 Total 100 100 100 100 Good Products/ Services Bad Products/ Services
  39. 39. Examples of Corporate Employee Ambassadorship Programs Zappos - One of the company’s 10 core values is “Deliver WOW Through Service”, and the culture is focused on building the best customer experiences. Hewlett-Packard - Several times a year, HP ‘Demo Days’ program has current/retired employees volunteer and train to spend days at local electronic retailers as company brand ambassadors NCR - Ambassadorship program created to drive customer loyalty and advocacy, and enhanced company culture, for customer-facing and non customer-facing employees. Employees are recruited and trained in customer interaction soft skills, and NCR overall company and brand information. Program participants are also required to report back on their experiences as ambassadors.
  40. 40. Best In Class Customer Service Directly Linked to Business Results Creating Employee Ambassadors Employee Ambassadors Engaged Employees Employees An “Ambassador” is an employee who promotes NCR both internally and externally Creating Customer Advocates Customer Advocates Satisfied Customers Customers An “Advocate” is an customer who promotes NCR within or beyond their own company Leadership/Engagement NCR Customer and Employee Linkage Model
  41. 41. NCR Employee Ambassador Program Summary Currently open to all Services employees Special invitations to those identified via survey 2-3 hour initial training requirement to become an ambassador Training Covers: Ambassadorship, in general and at NCR; Company information, including branding; Customer Interaction soft skills – Customer Service, Professionalism, Communication skills Welcome letter, gift, and access to SharePoint site provided upon completion of training Expectations of Ambassadors Participation in ambassador opportunities – PR, Marketing, Community Relations, Internal Communications (based on availability) Incorporate ambassadorship into everyday activities On-going training Periodic reporting back Benefits for Ambassadors Welcome gift Broad and sometimes advanced access to information Special ambassador events and professional development opportunities Reward program to acknowledge extraordinary contributions
  42. 42. Nine Employee Ambassadorship Best Practices Build a climate of trust and authenticity Train, train, train (and cross-train in customer sensitivity and value proposition) Make certain everyone has a career path Provide frequent evaluations/contribution reviews Seek to inform, seek to debrief, and be transparent Recognize and reward customer-focused initiative Don’t just ask employees what they want, provide it By all means, have fun Hire the ‘right’ employees in the first place Source: Customer WinBack, Jill Griffin and Michael Lowenstein
  43. 43. Concluding Thought “Every Honeywell employee is a brand ambassador. With each customer contact, and whenever we represent Honeywell, we have the opportunity to either strengthen the brand or cause it to lose some of its luster and prestige. Generations of Honeywell employees have built our powerful brands with their hard work, spirit of innovation, passion for quality, and commitment to customers. I am counting on every Honeywell employee to continue that legacy.” Message from David Cole, Chairman and CEO Honeywell International, Inc. August, 2004 to company’s 120,000+ employees
  44. 44. Based on Ambassadorship-Based Research, What Actions Should Companies Be Taking? Employees, at all levels and in all functions, need to have a thorough understanding of what is important to customers so that their actions match customer expectations and performance requirements. Employees’ behavior needs to be aligned around positive customer experiences and customer loyalty. Management must build processes, technology, training, reward, recognition, and organizational/cultural practices that support employees being able to optimize customer experience. Companies should evaluate the effectiveness of metrics associated with delivering customer value – financial and non-financial performance, addressing customer life cycle, amount of cross-functional collaboration to support customers.
  45. 45. 455Beyond Philosophy © All rights reserved. 2001-2009 $ 50 reduction on Employee engagement training module Watch out for email!
  46. 46. Colin Shaw Founder and CEO Email: Michael Lowenstein Thought Leadership Principal Email: Thank you!