Many of you will have heard or read about the new report released by the CMO Council that describes the current role of the voice of the customer in marketing decision-making based on a survey of 480 executives. It is a dismal state of affairs given the sputtering we hear about the importance of customer service.

Reports have already been published in major industry publications such as AdAge and AdWeek, as well as blogs too numerous to mention.

Some key findings include;

• Nearly two-thirds of companies do not have a formal Voice of Customer program in place.
• Only 31 percent highly rate their organization’s commitment to customer listening.
• Only 13 percent of companies have deployed real-time systems to collect, analyze and distribute customer feedback.
• While 74 percent say they receive customer feedback via e-mail, only 23 percent say they track and measure the volume and nature of these messages
• Only 12 percent are using a word-of-mouth marketing platform to drive online customer advocacy.
• 58 percent of them believe the Internet and social media have changed the level of influence and expectations of their customers, but only 14.5 percent track word of mouth on the Internet and only 16 percent regularly monitor online message boards for complaints and feedback
• 37 percent said they gather insights from customer engagement situations
• 56 percent said they have no programs tracking or propagating positive word of mouth among customers
• Only 33 percent of the respondents think their companies are very good at resolving complaints
• 58 percent said their companies do not compensate any employees or executives based on customer loyalty, satisfaction improvements or analytics
• Only 29 percent said their companies rate highly in their ability handle and resolve customer problems or complaints

I think you would agree that this is a dismal state of affairs. From all this data, two things stand out for me.

1. What gets measured gets done: Unless people are being recognized and rewarded for an activity it will not get done.
2. Empowerment: If improving the customer experience is not central to your value system and everyone isn’t empowered to effect change, then change will not happen.

At the end of the day, even though everyone seems to espouse the value of customer service, it still isn’t being effectively leveraged to create a point of difference for organizations. I believe those of us who focus on these two truths will win the day.

Check out the articles (and some of the comments) – they make good reading. You can download the Executive Summary here.

The authors wrote in Industrial and Organizational Psychology that employees will feel — and act — engaged when their employer creates conditions that permit them to do so. The key condition for feeling engaged is fair treatment, which creates a feeling of trust and, in turn, feeling safe to be engaged.

They feel that some people confuse engagement with satisfaction and/or commitment and consider retention and turnover to be indicators of engagement. However, Macey and Schneider said employee engagement concerns both feelings of engagement, focus and enthusiasm, as well as engagement behavior, proactivity and persistence.

Engagement is not equal to satisfaction. Engagement connotes energy and not satiation, while satisfaction connotes satiation and contentment but not energy.

The authors contend that employees come to work ready to be engaged, and the challenge for organizations is to create conditions that will release that energy. I agree. Do you?

Cheers!

Most organizations have put considerable time and money into developing a benefits package that is a positive for their employees. Rightly, they expect that these benefits will contribute to a positive work environment and overall engagement.

However, Andy Philpott of Accor Services (one of the UK’s leading providers of employee benefits, rewards and loyalty services), reports that in a recent study they conducted of rewards, benefits and employee engagement that only one-third of employers (33%) believed staff understand what benefits are available.

More concerning is that just one in five employees (21%) claim to have a good understanding of the value of the benefits available and one in 10 admit they have no clue about the value of these benefits.

Employees also seemed unsure whether their pay, benefits and incentives packages were competitive when compared with people doing similar jobs in similar organisations. Only 33% felt their company was competitive on pay, 25% on benefits and just 17% felt their organisation offered competitive incentives.

It is critical that we communicate the value of our benefits package effectively to staff. Successful communication is an foundational element in building employee engagement and the resulting performance, motivation and productivity benefits are not maximized if people are unaware of what the benefits are.

Cheers!

Not that we need to say it again, but more recent research confirms that increasing employee engagement increases performance. Most boardrooms see employee engagement as a key priority for the future and investment in engagement is set to grow — even in the current economic environment.
This is a key finding of the comprehensive study of engagement practice undertaken in the UK, commissioned by employee engagement consultancy, Engage Group.

The survey of nearly 23,600 directors, managers and employees, conducted during October 2008 , reveals that effective engagement can demonstrably improve an organisation’s performance.

A high level of employee engagement is one of the top three drivers of an organisation’s performance, and nearly a third of the UK’s senior leaders see a fully-engaged workforce as one of the most critical factors in their organisation’s success.

Key findings from the report are as follows;

• Effective engagement can demonstrably improve an organisation’s performance
• Most boardrooms see engagement as a key priority for the future and net investment in engagement is set to grow, even in the current economic environment
• Despite growing board support for engagement, most employees still feel disengaged from their organisation – board buy-in has not yet, according to employees, been translated into action
• ‘New world’ aspects of engagement, particularly the appetite and ability of leaders at every level to share power and engage people in decision-making, emerge as powerful new elements of engagement
• Delivering on the ‘new engagement agenda’ will result in more engaged employees, more committed customers and faster growth
• Forceful ‘command & control’ styles of leadership have little, no or even a negative impact on engagement and performance levels – less than 40% of employees view their leader(s) as effective
• Employee satisfaction, the oldest assumed element of employee engagement, sinks near the bottom of the list of influential factors
• Internal measurement lags behind external measures of performance – only 28% of board members claim to use robust internal measures of employee engagement

This study confirms an earlier thesis, the outcome of an extensive research programme carried out in partnership with McKinsey & Company, that the drivers of employee engagement are steadily shifting towards a new inclusiveness

However, despite growing board support for engagement, most employees feel disengaged from their organisation. Only just over a third of employees believe their organisation engages them to perform well.

For those of us who live in the world of employee engagement this comes as no surprise, but for those clients who are still struggling to find the time, money or motivation, maybe this will help.

You can download a complete copy of the full report at Engage Group.

Recently MarketingProfs sent out a note about going the extra mile. In it they referenced an article (Giving Firms an ‘E’ for Effort: Consumer Responses to High-Effort Firms) by Andrea C. Morales, assistant professor of marketing at the Marshall School of Business, University of Southern California.

Their research indicated that customers reward companies that are seen to go the extra mile — even if they don’t personally benefit from that effort. In fact, customers are willing to pay more for a product, frequent one store rather than another, and, in general, have a more positive impression of a company or brand that is perceived to put in more effort.

Andrea’s explanation is that customers recognize that effort is a controllable behaviour, and as a result, feels gratitude toward firms that work hard.

It reminds me of a review an advertising agency got from a client (our customer) where I worked many years ago. In that review the client was very critical of the creative product and lukewarm on the media and production. However, they were very positive about the account service team because, in their words, “we worked so damn hard”.

They acknowledged that they were not always getting the level of service they expected, but were willing to be somewhat forgiving because of the obvious effort their daily account team was expending on their account. They gave us time to address the issues while putting senior management on notice that something had to be done.

According to the researchers, customers can view a company’s outstanding efforts as either general or personal.

• A company’s actions are considered to be general when they benefit the universe of customers, such as creating new products
• However, a company’s actions are considered personal when the action is deemed to benefit a specific customer (such as outstanding customer service), even if they are not the customer receiving the benefit.

We all know that personal wins because of the emotional connection. However, the interesting notion is the halo effect created by doing a good deed for someone else. My sense is that it is driven by the belief that the company (or person) would do the same for us in a similar circumstance.

I think this concept applies to personal behaviour as well as company behaviour. So demonstrate you are making the effort even if you can’t satisfy your customers need. They will recognize your efforts and appreciate and reward you for your attempt.

Cheers!