Harmonising Image and Identity

Corporate Reputation and Competitiveness

Lecture 6

The Corporate Reputation Chain

Customer

View

Employee

ViewReputation

The Corporate Reputation Chain

Customer

View

Employee

View

Satisfaction

Loyalty

Revenue

Reputation

The Corporate Reputation Chain

Customer

View

Employee

View

Satisfaction

Loyalty

Revenue

Satisfaction

Retention

Reputation

The Corporate Reputation Chain

Customer

View

Employee

View

Satisfaction

Loyalty

Revenue

Satisfaction

Retention

Identity

Reputation

The Corporate Reputation Chain

Customer

View

Employee

View

Satisfaction

Loyalty

Revenue

Satisfaction

Retention

ImageIdentity

Reputation

The Corporate Reputation Chain

Customer

View

Employee

View

Satisfaction

Loyalty

Revenue

Satisfaction

Retention

ImageIdentity

Reputation

Other External Stakeholders: Suppliers,

InvestorsRecruitment

Managing Reputation: Creating the Chain

• Image and Identity must be harmonized• There must be symmetry: the same brand personality

must be relevant to both employees and customers.• There must be affinity, an emotional linkage between

the customer and staff such that what customers value in the brand employees value too

• There must be connection, a rational linkage, a reason why staff should be satisfied because customers are satisfied (sales incentives, stock options)

Forging Links

• Links between image and identity and between image and performance are rarely in place.

• It is the role of management to ensure that they exist

Corporate Personality

Agreeableness

Enterprise

Competence

Chic

Ruthlessness

Machismo

Informality

The 7 Dimensions of Corporate Personality

AGREEABLENESS

Reassuring

Concerned Honest

Sincere

Socially Responsible

TrustworthyStraightforward

Open

Pleasant

Cheerful

Empathy IntegrityWarmth

Agreeable

Supportive

Adventure

ENTERPRISE

Modernity Boldness

Imaginative

Up to Date

Exciting

Extrovert

Daring

Cool

Trendy

Young

Innovative

COMPETENCE

Technocracy

Corporate

Technical

Leading

Achievement Oriented

Ambitious

Hardworking

Secure

Reliable

Conscientiousness Drive

Prestige

CHIC

Snobby

Elitist

Refined

Exclusive

Prestigious

Elegant

Stylish

Charming

SnobberyElegance

RUTHLESSNESS

Dominance

Authoritarian

Inward Looking

Selfish

Aggressive

Arrogant

Egotism

Controlling

INFORMALITY MACHISMO

Rugged

Tough

Masculine

Easy going

Simple

Casual

So What does a Good Reputation Look Like?

When Customer Facing Staff have a Better View of the Organisation than the

Customer

Department Store No. 1

2

2.5

3

3.5

4Machismo

Informality

Ruthlessness

ChicCompetence

Agreeableness

Enterprise

staff customers

Department Store No. 2

2

2.5

3

3.5

4Machismo

Informality

Ruthlessness

ChicCompetence

Agreeableness

Enterprise

staff customers

Satisfaction

I am pleased to be associated with

Company X

I feel an affinity with Company X

I would recommend Company X to a

friend or colleague

Overall satisfaction with Company X

Do Happy Staff Mean Happy Customers?

It Depends!!

Sat i sf act i on

R2 = 0. 54

3.45

3.5

3.55

3.6

3.65

3.7

3.75

3.8

3.85

3.4 3.5 3.6 3.7 3.8 3.9 4

Staff Satisfaction

Cus

tom

er S

atis

fact

ion

Financial Services Distributor: Satisfaction Scores by Branch

R2 = 0.3805

3.54

3.56

3.58

3.60

3.62

3.64

3.66

3.68

3.70

3.72

3.30 3.50 3.70 3.90 4.10 4.30 4.50

Staff Average Scores

Cu

sto

me

r A

vera

ge

Sco

res

Customer Chic & Satisfaction

R2 = 0.6498

2.6

2.65

2.7

2.75

2.8

2.85

2.9

2.95

3

3.05

3.1

3.4 3.5 3.6 3.7 3.8 3.9 4

Satisfaction

Ch

ic

Customer Satisfaction & Agreeableness

R2 = 0.6574

3.5

3.55

3.6

3.653.7

3.75

3.8

3.85

3.4 3.5 3.6 3.7 3.8 3.9 4

Satisfaction

Ag

reea

ble

nes

s

Customer Satisfaction and Sales Growth

R2 = 0.4507

-10-8-6-4-20246

3.4 3.6 3.8 4

Customer Satisfaction

Sa

les

Gro

wth

Do Image & Identity Correlate?

Oh Yes and How

Informality

R2 = 0.7056

2.5

2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

2.5 2.7 2.9 3.1 3.3 3.5 3.7

Staff

Cu

sto

mer

s

Machismo

R2 = 0.6104

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

2.5 2.7 2.9 3.1 3.3 3.5

Staff

Cu

sto

mer

s

Agreeableness

R2 = 0.8537

2

2.5

3

3.5

4

4.5

2 2.5 3 3.5 4 4.5

Staff

Cu

sto

mer

s

Ruthlessness

R2 = 0.3963

22.1

2.22.3

2.42.5

2.62.7

2.82.9

2 2.5 3 3.5

Staff

Cu

sto

mer

s

Chic

R2 = 0.8779

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

1 1.5 2 2.5 3 3.5 4

Staff

Cu

sto

mer

s

Competence

R2 = 0.8655

3

3.2

3.4

3.6

3.8

4

3 3.2 3.4 3.6 3.8 4 4.2

Staff

Cu

sto

mer

s

Enterprise

R2 = 0.9103

2

2.5

3

3.5

4

2 2.5 3 3.5 4 4.5

Staff

Cu

sto

mer

s

Customer and Staff Satisfaction

R2 = 0.2822

3.4

3.5

3.6

3.7

3.8

3.9

4

4.1

3 3.5 4 4.5

Company Values & Brand Values

Innovative and Modern

Friendly and Helpful

Honest and Down to Earth

Efficient and Simple

Ethical and Community Conscious

So that the company will be Trusted, Admired and Liked

Marketing PerspectiveHuman Resource Perspective

Be energetic, innovative

Look after our people so they look after our customers

Trust and respect each other

Support each other and praise more than criticise

Enjoy work, celebrate success

How do you Manage Harmony?

There are Various Tools

The Balanced ScorecardComplaints

SatisfactionCustomer Loyalty

Market Share

Sales Growth

Cost Control

Profitability

Added Value

Staff Loyalty

Training

Morale

Vacancies

Stock

Waste

Availability

Productivity

Queue Length

Micro Behaviours

• Actions including those at a subliminal level such as body language that, collectively, affect image and identity.

• Micro behaviours can be trained, but often the training will in itself create a negative impression of employees going through the motions.

The Corporate Reputation Chain

The

CorporateCustomer

View

Employee

View

Satisfaction

Loyalty

Revenue

Satisfaction

Retention

ImageIdentity

Persona

THE BRANDED EXPERIENCE

Generally:

Product brands build associations using media advertising

Service brands build associations through the experiences customers have and the tangibles (buildings, people) associated with the service

THE BRANDED EXPERIENCE

-1 Preconceptions, Expectations, Prior Experience1 Access to the store, signage, parking, availability of

trolleys, first sight of store2 Entrance “welcome”, floors, lighting, staff greeting,

signage, temperature, product display, smell, busyness3 Lead department, colour, smell, sound, flooring,

cleanliness, mood4 Crowding, price points, impressions of other customers,

number of staff uniforms in sight, music, product range and display, clutter.

THE BRANDED EXPERIENCE (cont.)

5 Time perception, quality perception, significant incidents, staff contact, moments of delight

6 Checkout, bagging, staff contact, perception of staff, satisfaction with experience, ease of exit

7 Reaction of “significant others” to mention of experience, own reaction, sources of reinforcement