2. Our Perspective and RoleatHarris Interactive Stakeholder Relationship Consulting
3. HarrisInteractiveStakeholderRelationship Consulting Concept& Model ofCustomer and Employee Commitment StrengtheningBonds&BuildingRelationships HARRIS INTERACTIVE Loyalty 4.
RATIONAL CONNECTIONEMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Customers 5.
RATIONAL CONNECTIONEMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Employees 6. Linkage of Stakeholder Groups
7. Connection of Employee Attitudes and Beliefs to Customer Behavior HARRIS INTERACTIVE Loyalty 8. The Role of People in Leveraging Behavior Why They Can Be So Critically Important 70% 41% 68% ofcustomers LEAVEbecause of poor employee attitude ofcustomers are LOYALbecause of a good employee attitude of customerbrand perception is determined byexperiences 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 9. Further Proof Points of Employee Attitude/Action Linkage to Customer Behavior
10. Mirroring Research: Correlating Employees Perceptions of Value Delivery to Those of Customers HARRIS INTERACTIVE Loyalty 11. Employee Mirror Research: Customer-Supplier Perceptual Gap Profiling
12. Measuring Customer and Staff Alignment Significant misalignment * Based on % 6/7 performance ratings on a 7-point scale 13. Customer Need Importance Perceptual Gaps Relative Importance Of Issue Actual vs. Perceived Customer Needs 14. Nine Employee AmbassadorshipBest Practices
15. Essence of Employee Ambassadorship
16. Defining the Employee Ambassador Research Framework HARRIS INTERACTIVE Loyalty 17. Employee Research Approaches Employee Satisfaction, Values, and Loyalty Employee Engagement and Alignment Employee Commitment and Ambassadorship (Advocacy) Employee Attitudes and Behaviors Research 18. Definitions of Employee Research Concepts and Methods
19. 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 andSatisfaction Employee Commitment and Ambassadorship Employee Engagement and Alignment Employee Satisfaction & Loyalty 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 Now Now 1990s 1990s 1980s and earlier 1980s and earlier 20. Many Ways to Define Employee Engagement
21. Our Framework: The Two Components of Engagement Commitment to Company-Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), andto 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 22. Employees That Score High on Commitment to the Company and The Value Proposition Are Considered Engaged Company Value Proposition Engaged 23. Though Engagement is Useful,Employee Ambassadorship is More Actionable 24. The Three Components of Ambassadorship Commitment to Company-Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), andto 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. 25. Employees That Score High on Commitment to the Company, The Value Proposition, and the Customer Are Considered Ambassadors Company Customer Value Proposition Ambassador 26. First Generation Employee Ambassadorship Research Findings September, 2006 HARRIS INTERACTIVE Loyalty 27. Employee Commitment Categories Employee Ambassadors (Advocates) the most active level, representing employees who are strongly committed to the companys 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 28. Overall Ambassadorship Method Findings * weighted N Employee Ambassadors Positive Loyalists Indifferents Dis-interested Seatfillers Employee Saboteurs Harris Poll Baseline
612* 15% 27% 27% 20% 11%
441* 15% 31% 27% 16% 9% Las Vegas Hotel/Casino
2,622 23% 28% 25% 15% 9% 29. Harris Poll Service Employee Baseline ResultsThoughts/Feelings About Company Percent I trust the company I like the company (16%)* (18%)** (20%)* (8%)** * = Top Box % on 5-point description scale ** = Bottom Box % on 5-point description scale Employee Ambassadors Employee Saboteurs 30. Harris Poll Service Employee Baseline ResultsCompany Attributes/Diagnostics Percent The organization is well-managed The organization is focused on attaining the highest quality possible * = Top Box % on 5-point description scale ** = Bottom Box % on 5-point description scale (12%)* (16%)** (25%)* (6%)** The organization is very loyal to its employees (13%)* (16%)** Employee Ambassadors Employee Saboteurs 31. Harris Poll Service Employee Baseline ResultsComparative Assessments (Fram & McCarthy Diagnostics) Percent # of product/ service features we provide Overall product/ service quality * = Percent rating their company Much Better compared to competition (5-point scale) (29%)* (33%) (31%) (29%) (34%) (25%) (30%) Overall value of product/ service Trust among customers Long-term relationships with customers Perceived prestige of the organization Benefits of products/ services to customers Employee Ambassadors Employee Saboteurs 32. Comparisons of Key Results Fram & McCarthy Employee Brand Champions andEmployee Ambassadorship * = Element of employee ambassador technique Low to High Brand Loyalty (Difference in % Points) Saboteur to Ambassador (Difference in % Points) Attitudes Toward Employer
+27 +62
+32 +65
+20 +64 (Comparative) Attitudes Toward Employers Products/Services
+20 +30
+32 +33
+27 +37
+24 +36 33. Mirroring Diagnostic Elements (Top 2 Box Scores 7 Point Scale)
Guests are committed to continuing their relationshipwith the hotel Guests are loyal hotel customers Percent Top 2 Box 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 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 Guests All Employees Employee Ambassadors Employee Saboteurs 34. Swing Voter Analysis HARRIS INTERACTIVE Loyalty 35. Swing Voter Analysis of Employee Ambassadorship
36. Ambassador/Saboteur Swing Voter Analysis Saboteurs Indifferents EmployeeAmbassadors What turns indifferent employees into ambassadors? What turns indifferent employees into saboteurs? Swing Voters 37. Swing Voter Analysis Importance Scores for Selected Attributes (Swing Up To Ambassadors, Swing Down To Saboteurs) Delighters Dissatisfiers Dual effects SwingUp 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 hotels mission, goals, and objectives 2% 13% The extent of diversity of co-workers - 8% I am very committed to my work 2% 5% 38. Second Generation Employee Ambassadorship Results, Spring, 2008 HARRIS INTERACTIVE Loyalty 39. Ambassadorship Groups By Selected industries (Sorted by % Ambassadors) Total Base = 4,312Industry 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 40. Validation 41. Employee Loyalty* By Ambassadorship Group *PLS factor of the following three metrics: 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 42. How Often Say Good Place/Bad Place To Work by Ambassadorship Groups Good Place To Work BadPlace To Work 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 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 43. How Often Say Good/Bad Products/Services by Ambassadorship Groups Good Products/ Services Bad Products/ Services 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 ambass1 Total 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 44. Examples of Corporate Employee Ambassadorship Programs
45. Best In Class Customer Service Directly Linked to Business Results Leadership engagement Customer and Employee Linkage Model Creating Employee Ambassadors Employee Ambassadors Engaged Employees Employees An Ambassador is an employee who promotes NCR bothinternally and externally Creating Customer Advocates Customer Advocates Satisfied Customers Customers An Advocate is an customer who promotes NCR within or beyond their own company 46. Services Survey: Category Impact on CommitmentTotal Respondents 4 47. Ambassador Program Summary
48. Nine Employee AmbassadorshipBest Practices
49. Concluding Thought
50. Based on Ambassadorship Research, What Actions Should Companies Be Taking?
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