Employees are the new customers

According to a recent article in Harvard Business Review, loyal and engaged employees are more aligned to customer’s needs and generate 37 per cent higher sales and 31 per cent higher productivity on average. This drives customer loyalty, and in turn, profitability.

RedBalloon was initially an experiment to see if a company could be successful by putting the focus on great customer service, and behind the scenes, great employee engagement to drive this customer experience.

RedBalloon founder Naomi Simson is a staunch advocate for employees as the new customer – she fundamentally believes that if your people are happy, this will trickle through to customers. And this attitude behind the reason RedBalloon has become a sought after employer, evidenced by making the BRW Best Places to Work list four years in a row (one of only 13 companies to do so).

It makes sense. Happy employees are more likely to go above and beyond; they are productive; and far more likely to stick around over the long term. Retention is one of the biggest issues facing businesses right now and with the cost to replace someone estimated at 150 per cent of their salary; simple maths demonstrates the return on investment of employee engagement.

“The principles behind building a strong and enduring brand are all about building great relationships – with your customers, your suppliers, your clients and especially your employees as they’re the greatest brand ambassadors you have!” Ms Simson said.

The 2010 Dream Employers survey concluded that the top 20 companies on the list had been selected in 41 per cent of cases because of their brand or company reputation. It was the most appealing of all reasons for choosing an employer – from a list which also included work/life balance, culture, pay and benefits and equal opportunities.

Why? “Because brands are built in the hearts of our customers and employees through the relationships they have with that organisation,” Ms Simson said.
“Every touch point adds or detracts from that relationship, because a brand is not advertising, but how people experience and feel about an organisation. It is the people they meet, the stories they hear, what they see on social network sites that form opinions about a business.
“People question if they can trust or believe the story. And it is no different in building an employer brand. In the Dream Employers report we see that Australians and Kiwi’s believe in the brands they dream about representing, and the number one way that people validate what they believe in is by checking with existing employees. If the story that employees tell about a business is different to what people believe to be true, then the brand reputation is damaged.”
“You have to listen to your customers, clients and employees so you can deliver a positive experience every time they engage with your brand. 

“At RedBalloon we know that a high level of customer service starts with happy employees who are more willing to go the extra mile to ensure a positive customer experience every time, and that’s why our company values are fundamental to everything we do.”
 
This is why employees are the new customers. Each employee has a voice (and could be a personal publisher). As such it is up to leadership teams to stay vigilant and committed to the employee experience – because that will mirror the customer experience, and ultimately the brand itself.

Date: 20/08/2012