Human Resources: Employee Ambassadorship

An Actionable New Research Framework for Understanding the Performance and Bottom-Line Impact of Employee Commitment to the Brand Promise, Organization and Customers Employee Ambassadorship represents new, contemporary thinking for organizations seeking to understand, leverage and improve, how what employees think and do – regarding their jobs, feelings about the organization and its products and services, and the company’s customers – to influence and drive highly desirable (and profitable) loyal customer behavior. Employee Ambassadorship arms HR, as well as an organization’s business and customer loyalty leaders, with advanced “inside-out” research that demonstrates and diagnoses key areas of linkage whereby employee attitudes and actions, on behalf of the company, directly affect customer behavior – increasing loyalty, advocacy and ultimately top- and bottom-line business performance.

It is well understood that employee-to-customer interaction has strong influence on customer perceptions and relationships with a supplier. Linking employee attitudes, beliefs, and actions to customer behavior also has direct financial consequences for any organization. More than an intuitive statement, the level of impact can be significant. One study, conducted by a major international brand consulting firm, found that companies with high customer brand commitment had 60% higher five year shareholder return compared to the S & P Index. Companies with both higher customer and employee commitment had 220% higher return over the same period.

Another study, with a UK retailer, showed that, for every 1% increase in employee commitment, there was a 9% increase in monthly sales. Corporate leaders have become very much aware of numbers like these. Increasingly, HR, alone or with market research support, is being challenged to make certain that all employee research provides action regarding individual and group performance and contribution. The question is, do current research approaches offer this kind of actionability?

Today, customers have more ways to engage with suppliers of goods and services than at any time in the past. So, companies have more ways to succeed in creating a relationship, and also more ways to fail. Employees are the common denominator in optimizing the customer experience. Making the experience for customers positive and attractive at each point where the company interacts with them requires an in-depth understanding of both customer needs and how what the company currently does achieves that goal, particularly through its employees. It requires that companies understand, and leverage, the impact employees have on customer behavior. Employee satisfaction and engagement will both have relatively passive linkage, but Employee Ambassadorship and Commitment will result in stronger financial performance on every key measure of performance.

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