employee engagement and ambassadorship - beyond philosophy webinar

www.beyondphilosophy.com

Linking Employee

Engagement and Employee

Ambassadorship

Driving A Successful Customer-Centric Culture

Through Employee Commitment to the Company,

the Value Proposition, and the Customer


Your Beyond Philosophy hosts…

Colin Shaw Founder & CEO

Michael Lowenstein

Principal


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

www.beyondphilosophy.com 4

We have dealt with many large organisations

Beyond Philosophy © All rights reserved. 2001-2013

http://www.standardbank.co.za/vgn-ext-templating/v/index.jsp?vgnextoid=39b8b2e17e35b210VgnVCM100000c509600aRCRD

http://www.etisalat.ae/index.jsp?lang=en

http://www.roche.com/index.htm


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.


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


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


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.


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


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:


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.


Customer-Employee

Perceptual Gap Profiling A Customer-Centricity Two-Sided ‘Mirror’


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


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

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 communication channels with supplier 18. Availability of multiple purchase channels

5. Speed of follow-up: requests/inquiries


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


Perceived Performance Gap Profile Staff vs Special Education vs Mainstream Subject Areas

High Performance*

Special Education Mainstream Staff

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


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 performance on . . . ?

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-ordered by CMG/WMG/EMG importance.

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 employees think customers attach to the specified attribute/area.


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


Employee

Satisfaction,

Values, and

Loyalty

Employee

Engagement and

Alignment

Employee

Commitment and

Ambassadorship

(Advocacy)

Employee Attitudes and Behaviors Research

Employee Research Approaches


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.


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


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.


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


Employees That Score High on Commitment to the Company and

The Value Proposition Are Considered Engaged

Company Value

Proposition Engaged


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.


Employees That Score High on Commitment to the Company, The

Value Proposition, and the Customer Are Considered Ambassadors

Company

Customer

Value Proposition

Ambassador


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


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


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%

80%

7% 8% 9% 11%5% 7%

34%

44%

33%

25%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Guests are

committed to

continuing their

relationship

with the hotel

Guests are

loyal hotel

customers

Pe

rce

nt

To

p 2

Bo

x

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


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


Saboteurs

Indifferents

Employee

Ambassadors

What turns indifferent employees into ambassadors?

What turns indifferent employees into saboteurs?

Ambassador/Saboteur ‘Swing Voter’ Analysis (Discriminant Function Analysis)


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


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


Relevant and

Actionable Validation Leveraging Employee

Ambassadorship


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:


How Often Say Good Place/Bad Place To Work

by Ambassadorship Groups


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


Rarely/Never 50.5 86.5 98.1 77.7



Total 100 100 100 100


How Often Say Good/Bad Products/Services

by Ambassadorship Groups


Rarely/Never 46.0 7.9 1.6 18.1



Total 100 100 100 100


Rarely/Never 64.9 88.9 97.3 83.1



Total 100 100 100 100

Good Products/ Services

Bad Products/ Services


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.


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


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


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


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


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.


Colin Shaw Founder and CEO

Email: [email protected]

Michael Lowenstein

Thought Leadership Principal Email: [email protected]

Thank you!

employee engagement and ambassadorship - beyond philosophy webinar

Business

customer spending

customer perceptions

customer experience

india asia customer

customer loyalty behavior

positive employee attitudes

employee ambassadorship

employee engagement