I was chatting with a friend about budget-conscious brand revitalization strategies, the importance of creating employee-friendly corporate cultures and how to drive more passionate employee engagement today, and I was suddenly reminded of something John Moore – over at Brand Autopsy – wrote on his blog back in 2007:
“Astonish employees and they will, in turn, astonish customers.”
Simple enough, right?
Yet so rare.
Most companies have fallen into a little bit of a rut when it comes to doing something special for their employees, except around Christmas time or when they’ve had a decent quarter. And even then, we are talking about a $25 gift certificate to The Home Depot or your choice of a company pen, T-shirt or flashlight. Nice, but not exactly stunning.
The term John used is “astonish,” which implies a little more effort and attention than just giving your employees an empty token of “gratitude” that is as bland as it is… (well, let’s say it) kind of insulting.
Note to all department managers: If you’re going to reward your staff with T-shirts, make them the types of T-shirts that you want your employees to actually get excited about. (Hire a hot local graphic designer to design something unique or fun or cool . It’s cheaper than you think, and the impact will be pretty phenomenal.)
But enough about T-shirts. We’re talking about “astonishing” your employees – not merely giving them a perfunctory nod, which is exactly what the folks at Macintosh did a while back when they surprised all of their US employees with a brand new iPhone.
In John’s words:
“Giving every full-time employee a $600 (retail value) iPhone is an astonishing act that will only help to feed the already vibrant evangelical corporate culture within Apple. (…)At Starbucks, we would also spend marketing money on employees. We knew if we could get Baristas jazzed, they would get customers jazzed.”
Think back to an experience you’ve had recently (or not so recently) when you walked into a store or dealt with someone who was absolutely in love with either their job or the company they worked for. How was your perception of that company affected by their enthusiasm? (How likely were you after that experience to a) recommend that business to friends and peers, and b) do business with that company again?)
Now think back to your last experience with a bored, apathetic grocery store cashier, or with an unqualified telephone customer service rep, or with a passive-aggressive waitress who REALLY needs a vacation. How different might your perception of that company be? How likely is it that you will make that business your first choice? How likely is it that you will speak well of this business and recommend it to friends?
All things being equal: Pricepoint, quality of the work or food or product, product performance, cool packaging, etc. – the quality of the experience surrounding human touch-points becomes primordial.
Two average grocery stores can have a radically different image or reputation based SOLELY on the way their employees behave. The same is true with any business in which people (employees) interact with other people (customers): Restaurants, banks, retail establishments, medical offices, auto mechanics shops, etc.
Employee behavior can be radically impacted by their managers’ positive or negative treatment.
Therefore, customer experience can be radically impacted by the way a company treats its employees:
Good treatment of employees = good customer experience.
Great treatment of employees = great customer experience.
… And so on.
So rather than tossing the occasional cheapo bone to your employees to maintain morale (or whatever,) start thinking of ways that you might make them feel special. Think of ways of rewarding them, or of saying “thank you,” or making them feel truly appreciated that kind of… well, stand out. Get them jazzed about working for you. Make them feel proud and excited and vibrant.
The point here isn’t to bribe them or buy their loyalty with expensive gifts. The point is to show genuine, profound, unmistakable appreciation for what they do and for the importance of their daily contribution. If you don’t have a budget for something like this yet, get creative. Give them Friday off, out of the blue. Give them an extra vacation day, on the house. Mail them a thank you card with a real message inside, not just some cheesy drugstore quotation. Offer to introduce them to people they don’t normally have access to. Bring them into projects they aren’t senior enough to have a voice in.
Though fancy electronics like iPods, Zunes, Flip cameras and the likes usually do the trick as well.
This isn’t “team building,” mind you. This is just saying thanks. This is just giving them a hug and a pat on the shoulder, looking them in the eye and saying “We’re really glad you’re here.” And meaning it.
Every once and again, you have to stop what you’re doing, put off fighting your daily little fires, and remember to make your employees feel that they aren’t just easily replaced pawns. (And if you’re hiring intelligently, they are most definitely not easily replaceable pawns.)
Make your employees realize that you truly understand their value to the success of the brand they help shape in the public’s eye every single day.
The way you treat your employees is the way your customers will be treated.
Perhaps this should be the very first rule of management.
Have a great Wednesday, everyone. 😉
This is a tough sell. Mainly because corporate culture can’t be changed over night and it is often more effective to begin a company with these ideas then implement them retroactively.
However, I do think this is an excellent point you DO need to create a happy (non-cultish), vibrant work place. The results should begin to manifest themselves quickly.
Good point. All I can say is – if businesses aren’t making the effort right now to adapt to changing conditions, if they aren’t looking for ways to gain a competitive edge in the marketplace, then they simply won’t make it through this recession. And even if they do, they will come out of it battered, bruised, and at the bottom of a very steep hill.
While many companies are trying to cut costs to deal with a drop in business with no clear idea as to how they can stand out and steal marketshare from their competitors, this is kind of a no-brainer. It is a lot cheaper than an advertising campaign, stickier than a BOGO type promo, and more financially sound than a price cut. Let’s face it: When your revenue is down 20%, the last thing you want is to also cut into your profits. That is a LAST RESORT tactic. What I am talking about here is a first resort strategy. Companies that were already doing this are still doing relatively well. Companies that haven’t been doing this need to take a very close look at turning their employees into their biggest asset.
Companies were not willing to change their cultures when things seemed to be going well, and I get that. I’ve experienced this firsthand for many years. But in this climate? Necessity and survival ought to help company execs rethink the way they do business. (One can hope.)
I am still seeing company execs using this recession to retain employees via proxy scare tactics: They can cut out bonuses and other benefits, even their pay to “cut costs” (i.e. secure their own bonuses) because they know what their employees are thinking: Right now, a lousy job is better than no job at all. With 1 out of 12 Americans being unemployed right now an very little hiring going on, leaving a job that is no longer pleasant or rewarding is seen as a ticket to the unemployment line. It’s sad, but that is what we have to deal with, sometimes.
On the flip side of that scenario are employers who have taken the opportunity to actually get down in the trenches with their employees and earn their respect, trust and affection. Some employers have become more aware that the morale and engagement of their employees is directly tied to the company’s well-being. (And having an engaged, positive workplace is also pretty good for the soul, especially when things are a little scary all around us. Who wants to manage a team of folks who sees you as a slave driver and thinks of customers as a necessary evil?)
So you’re right: It’s a tough sell. But it’s also a smart strategy on every level: Cheaper than marketing campaigns, more effective than price reductions alone, stickier than logo redesigns and silly cosmetic rebrandings, and probably the best and fastest way to turn transient customers into loyal customers. An increase in customer loyalty / repeat business is what businesses want right now. Loyal customers tend to shop more often (frequency), spend more (yield) and recommend you to their peers (reach). These are the three basic things business development typically focuses on. So in terms of ROI and impact on a business, it’s pretty solid when done right.
😉
Nice article Olivier and so true. I especially like the thoughts about issues with budgets – sometimes mentoring or “special” projects can mean more than gifts.
The issue is how not to make it mechanical. I know of an example where the company created special cards to be given to employees for doing a great job – great idea but the implementation didn’t go so well. When the boss shows the employee one of 4 card designs and says pick one it kinda lost its impact.
Great post Oliver- thanks.
Zappos is living proof of this philosophy. And, as Stuart points out, it was done from the start rather than retro-fit.
The relationship is symbiotic- they feed each other. Treating employees like they are special does unleash their best for customers. At the same time, the team is inspired by the shared vision and goal of delighting the customer.
The good news it more and more companies are waking up to a embrace higher, multi-stakeholder visions based in values for the common good. When work has meaning it is also fun- which in turn feeds great customer experience. A virtuous business cycle! Who knew?
Olivier, you are spoiling us, because this kind of insightful, dig-deeper-than-most, thinking is what we have come to rely on from you.
From the space of user experience I usually play in, I am often talking about customer service, customer experiences, the effect of branding and advertising on the customer, and customer processes, but you’re so right to point out that true evangelism begins at home. If your employees aren’t enthused, how can you expect your customers to be, no matter how witty the ad campaign or how cheap the price???
Right now there is NO better time, amidst the layoffs and innuendo and worries about jobs, to go the extra mile internally, to make sure relationships are smooth and solid externally. Before there are channel partners, public relations agencies, ad agencies and even social media efforts, there are employees and every single one of them are critical to continued company growth.
You urge, “Every once and again, you have to stop what you’re doing, put off fighting your daily little fires, and remember to make your employees feel that they aren’t just easily replaced pawns.”
Great reminder and one that I hope will be seen by the right people who visit your blog, who can use this as inspiration to rejuvenate their workforce.
I love it when you guys leave great comments here. 🙂
Fantastic post, Olivier.
Especially timely, since so many business leaders are defaulting to scare tactics and defensiveness during these tough economic times. How we treat our “internal customers” has a direct correlation to how they will in turn treat our “external customers.” The energy recycles!
I really like your ideas of introducing employees to people they wouldn’t normally meet … or including them on “senior” projects for which they wouldn’t ordinarily contribute. When this occurs as an expression of affirmation, it reinforces to people worried about their jobs that they are valued by the company.
With all the talk these days about brand, it’s great to see someone actually talking about an organization’s people. If you can’t engage your own employees, if they don’t embrace the organization’s brand and aren’t allowed to become part of the delivery of the brand (regardless whether it’s a product or service organization), then there’s some serious value missing from the brand itself. It’s never too late to begin internal brand adoption programs but the key is that its got to start at the top – with the CEO, not simply HR.
Kudos to you Olivier for this post and for getting more people to talk about the true value of engaging a core internal asset.
Great topic Oliver!
Some recommended reading if you are interested in exploring this concept further (and more detailed suggestions on implementation):
“Hug Your Customers” by Jack Mitchell
“Hug Your People” by Jack Mitchell
http://www.hugyourcustomers.com
“Instant Turnaround” by Harry Paul and Ross Reck (available April 21)
http://www.instantturnaround.net
Thanks for bringing this issue up in regards to brand, it’s simply good business sense, isn’t it?
Thanks for the link love Olivier. An earlier comment is totally correct … employee engagement has everything to do with company culture.
When talking about the importance of building a company culture to engage employees, I usually drop this quote from Frederick Reichheld (the Net Promoter guy): “I have yet to find a company with high levels of customer loyalty without first earning high levels of employee loyalty.”
Right on Fred, right on.
Thanks for the comments! 🙂
John, Frederick is so right. I love that.
Pamela, thank you. I am going to check those out.
Kim and Elyse, thank you. 🙂
Fantastic post Olivier. “The quality of the experience surrounding human touch-points” is where brands are established amongst consumers. Many companies forget this important principle.
I agree that you should do more for your employees but it is amazing what a pen or golf ball will do for morale. Enthusiasm is contagious and for that matter negativity can be as well. Employee loyalty does lead to customer loyalty. Thanks again for reminding us of this critical brand component.
Thanks David. I guess with the pen and golf ball, the trick is to create them specifically for your employees then.
If that kind of branded shwag is intended as a promo for customers and managers hand out extra ones to their staff, the impact won’t be the same.
🙂
I think the key to achieving the type of employee engagement you are talking about is to genuinely care for your employees. The cheapest trinket can have large impact on morale if given sincerely (think underpaid teachers) and no bonus can make up for being treated like a machine.
I disagree with Kim that this type of change needs to start at the CEO level. Obviously, have a CEO passionate about their employees is a great first step but what is more important is how the front-line managers feel about their direct reports.
Lastly, I think the delusion bug also plays a large factor here. I can not remember the numbers but recently I heard on the gap between how much we think people trust us and how much they actually trust us and it was quite large.
Great post Olivier
Great points, Raul: The delusion element definitely applies here. And the trinket given with sincerity I also agree with completely. 🙂
Olivier,
I’m catching up on my blog reading and this post really made me think!
As you and many of those who have commented have already said, too many organizations are using the economy as an excuse to cut bonuses, eliminate salary increases and remove professional development dollars from their budgets. Many companies did away with their holiday parties last year and AIG has made “retreat” a dirty word.
If now is the time to get closer to your clients or customers, I would hate to have my front line of spokespeople (aka my employees) looking like a group of blank-faced hostages. I buy from companies that treat their employees well. Alternatively, I don’t buy from companies that do the opposite. For example, after I read about Radio Shack laying off people via e-mail and voicemail in 2006, I swore never to do business there again. (Which leads me to an entirely different rant – how a company fires or lets someone go says a lot about them, too.).
If I were your customer, I would want to hear from you that you’re trimming ridiculous, wasteful costs and pumping your available resources into your people. That’s a brand I want to support and see succeed. The organizations who see the economy as an opportunity to build deeper, more meaningful relationships with their personnel deserve to thrive.
Thanks!
Great post. Hopefully that means you’ll get a great comment in return, right? 🙂
I like the argument, but there’s one factor that will play a huge role in whether the astonishment accomplishes its goals… Sincerity.
Employees aren’t dumb. They can smell it when that perk is a bribe and not a genuine thank you.
And that comes back to the existing corporate culture…
Absolutely, Debbie. Sincerity is vital here. 🙂