Categories
Engagement Marketing

Internal Marketing vs. Internal Branding

I’ve gotten a lot of questions lately about the difference between internal marketing and internal branding. Some folks use the terms interchangeably, but there are a number of differences beyond semantics … or so I thought until I began to clarify what these concepts mean, how they’re different, and where they overlap.

I asked my colleague Debra Semans, an Atlanta-based marketing & branding consultant, to help me with this. Debra has extensive experience with internal branding.

Exploring the Two Concepts

I define internal marketing as “the application of marketing inside an organization to instill customer-focused values.” It bridges marketing with HR (Human Resources) to attract, motivate, and retain employees, with an emphasis on getting employee commitment to marketing and organizational goals. Think of it as an umbrella concept encompassing any & all activities, events, internal public relations, etc., that reinforce the importance of customers AND the employees who take care of them.

According to Debra, internal branding is “the process of aligning day-to-day activities, business processes, job designs, and recognition & rewards with the brand identity to drive business results.” It is part of a focused brand strategy that helps employees understand and integrate brand value(s) in their respective roles to ensure they can effectively deliver on the brand promise.

Where Internal Marketing & Internal Branding Overlap

  • Both approaches recognize employees ARE the brand. As a result, both are focused on engaging employees.
  • Both are part of organizational and marketing strategy to strengthen competitive advantage.
  • Both involve leadership – i.e., neither can be effective without management commitment.

Where They Differ

  • Internal Marketing is based on the self-reinforcing relationship between employee- and customer satisfaction (“take care of the employees & they’ll take care of the customers”), whereas Internal Branding is based on making the brand part of the organization’s operations (“getting employees focused on delivering the brand promise”).
  • Unless Internal Marketing and Internal Branding are part of an organization’s culture from Day 1, their trigger points vary. The application of Internal Marketing may be in response to problems with employee- and/or customer satisfaction or turnover, whereas organizations may turn to Internal Branding when launching a new brand or revitalizing an existing one.
  • Internal Marketing focuses on organizational culture and values, whereas Internal Branding focuses primarily on brand values that are aligned and consistent with organizational values. [Hmmm … maybe this belongs with the “Overlap” list above?]

Regarding this last bullet point – as Debra describes Internal Branding’s scope: “From understanding the piece parts of the brand so that they can use it as a guide or standard for their day-to-day decision making, to communicating about the brand in ongoing internal communications vehicles, to building brand-based rewards into compensation models, Internal Branding is geared to making the Brand part of the organization’s operations – and yes, culture.”  [OK, the two concepts are similar in this context in that they both impact organizational culture.]

The Bottom Line

So the differences between Internal Marketing and Internal Branding aren’t as clear cut as I thought. Some of their tactical executions may vary, but the desired outcome is the same: engaging employees for marketing and organizational success.

As Debra says of her work and mine: “Internal branding and internal marketing aren’t all that different. Maybe the only difference is that I’ve been riding the brand wagon and you’ve been on the customer service train.”

What Do You Think?

And now, dear readers, tell me what you think of all this. Semantics aside, what do Internal Marketing and Internal Branding mean to you?  I’d love your input.

To Learn More …

For anyone who wants to learn more about either or both topics, come see Debra and me at the American Marketing Association’s Marketing Workshop this spring in Austin, TX.  On March 13, 2006, I’ll be presenting my session on Internal Marketing (“Marketing from the Inside Out: Engaging Employees for Strategic Advantage”), and Debra will be doing her session on Internal Branding (“Living the Brand – the Dimensions of Internal Branding”) on March 15, 2006.

Categories
Engagement

Managing All-Employee E-mail Communication

As mentioned in a previous post on employee communications, most organizations have more than enough content and sufficient communications tools they can use.  Because it’s easy for departments to issue all-employee e-mails, it’s not unusual to hear folks complain about being bombarded with internal e-mails.

Even if controls are in place to manage the stream of “need to know” info, there is still a need to communicate the “nice to know” stuff so employees know what’s going on and feel connected … the challenge is finding a way to effectively & efficiently communicate both types of information without overloading people.

Meeting the challenge

Just about a year ago, Hudson Valley Community College, based in Troy, NY, launched the Hudson Valley Campus Chronicle as the school’s official employee newsletter “dedicated to providing information that helps the employees fulfill the college’s mission.”  Information is categorized under the headings of general news, upcoming events, “accolades” (faculty & staff achievements), and classifieds (the ever-popular “items for sale, swap, or wanted”).

The project was a joint collaboration between the school’s Internal Communications Committee and Computer Services Department.  [In full disclosure, I helped the Committee develop their initial internal communications plan in which they identified the need to streamline their employee e-mail.  However, I was not involved in any follow up design or implementation.  This post reports on their experience that I thought may be helpful to others.]

According to Eric Bryant, Assistant Director of Communications & Marketing, the Hudson Valley Campus Chronicle has been well received.  I recently got a sneak peek at it & was impressed with how user-friendly it is.  So I asked Eric to share his experience in developing and managing the Campus Chronicle.

Lessons Learned

  • Employees were anxious for an alternative to streamline the all-campus e-mails they received, so getting buy-in for this e-newsletter was not as difficult as anticipated.
  • In getting employees to use the Campus Chronicle, it was important to convey that it’s THEIR publication – an open platform for information, not just top-down communication.
  • Those involved in the project worked hard to make it easy to navigate (so people would read it) and easy to submit information via template (so people would use it).
  • Recognizing some employees need extra hand-holding to become more comfortable in submitting information (especially those who are not web-savvy), Eric felt they could have been more proactive in providing training in this area.

For other communications professionals about to engage in a similar initiative to streamline all-employee e-mail communications, Eric acknowledged an ongoing effort in continually “tweaking” the newsletter to meet employees’ communication needs and continually promoting it.  He also advises being flexible and having some fun with it.

Thanks for sharing, Eric.  And I’d love to hear from others who have experience with this.

Categories
Engagement Marketing Training & Development

2006: Recognizing A Special Anniversary

This new year is a very special one: 2006 marks the beginning of my 18th year in business as Quality Service Marketing.

Most small business statistics cite the first five years as being critical for survival, which is the reason I celebrate my business anniversary in five year increments.  But the number 18 has special significance for me – in Hebrew numerology, it represents “life.”  So I wanted to recognize this special year by acknowledging:

  • My clients (past & present) – I’ve enjoyed working with all of you, and it’s been an honor to serve you over the years, helping you with internal marketing & communications, marketing & strategic planning, and marketing & customer-focused training.
  • Special thanks to my long term relationships with Peg Portz & Jim Brown at Lehigh University’s Office of Distance Education; Pat Lawless at the Northeast PA Area Health Education Center; Ned Boehm at Keystone College; and Pat Goodrich, Lynn Brown & the rest of AMA’s professional development staff.
  • My colleagues – I’m fortunate to have a truly incredible network of marketing professionals & mentors whom I’ve relied on since starting QSM.  Time & space preclude me from mentioning everyone who’s helped me, but I need to acknowledge a number of special advisers (in no particular order): Frank Haas, Chris Bonney, Alan Kay, Toby Bloomberg, Len Berry, Steve Brown, Mike McDermott, Bill & Carolyn Neal, and Linda McAleer (she may not remember, but she helped convince me to start my business).  Special thanks, also, to my colleagues who continue to help make QSM look good: Glenn Wampole of Waitz Corporation and John Bartorillo & AJ Zambetti of Maslow Lumia Bartorillo Advertising.
  • Last (but certainly not least), my family and inspiration – my devoted husband, Michael (who’s still waiting for me to define success beyond professional & personal fulfillment. He loves to say, “Show me the money!”), and my wonderful son (and technological adviser), Jason.  I also need to acknowledge my mother, Ruth Fischman – a retired English & journalism teacher, who is still there for me when I need help with my writing.

Thanks to all for helping me reach this milestone 18th anniversary.  I couldn’t have done it without you!

Categories
Engagement Marketing

When Employee Engagement is a Joke

For some time now, I’ve enjoyed the tongue-in-cheek philosophy of E. L. Kersten, author of The Art of Demotivation and provider of anti-motivational posters & products on his site: www.despair.com. Here are a few choice quotes:

  • Apathy: If we don’t take care of the customer, maybe they’ll stop bugging us.”
  • “Get to Work: You aren’t being paid to believe in the power of  your dreams.”
  • “Worth: Just because you’re necessary doesn’t mean you’re important.”

(Enjoy checking out the complete list of demotivational quotes.)

But I’ve also had mixed feelings.  We all need to lighten up (like Sergeant Hulka, I have a “hell of a sense of humor”), yet I wonder if displaying these cynical, anti-Successories-type items might send the wrong message or be misinterpreted.

The sad truth is Kersten’s Despair, Inc. business wouldn’t be successful if it didn’t resonate with people.  There are too many organizations out there whose only effort to engage employees is to display motivational posters and/or initiate token recognition programs. Kersten’s satire is an effective way to deal with these shallow efforts.

And for those of us who are passionate about employee engagement, it’s also an opportunity to poke fun at ourselves … while reminding us of the importance of our work.

Categories
Customer service Engagement Marketing

Employee & Customer Trauma Cause Brand Damage

My recent posts dealt with the employee-customer happiness/satisfaction link and employees as personification of the brand.

Unfortunately, some managers may be blind to these self-reinforcing relationships, but not customers.

Customers are quick to pick up on signals of employee frustration & dissatisfaction, whether conveyed deliberately or not.  Consider a consumer’s experience in dealing with employees who:

  • lack sufficient product knowledge to help customers
  • are not clued in to the marketing messages being communicated to customers
  • genuinely want to help customers, but are hampered by a lack of internal support.

Any one of these situations that repeatedly occur reflect negatively on a company, its employees, and management.  Even worse, it puts an organization at risk to:

  • lose customers & income
  • lose employees (while incurring turnover expense)
  • negatively impact the company’s reputation (as a result of customer & employee churn), and
  • inflict serious brand damage.

Here’s a case where preventative medicine is preferable to acute care.  My prescription?  A healthy dose of internal marketing’s 3 Rs (Respect, Recognition & Reinforcement) applied regularly.

Categories
Customer service Engagement Marketing

Happy Employees & Customers

I came across a great post (one of many) in Olivier Blanchard’s The Brand Builder blog that reinforces the happy employee-happy customer link (it even sports a title similar to one of my earlier posts).

What I love about Olivier’s post is “The Wheel of Customer Service and Brand Identity Doom” that models what he describes as “a self-perpetuating vicious cycle of substandard customer-to-brand experiences.”

It’s a great visual and one that many managers need to be reminded of.  Sadly, there are also too many consumers and employees who would agree.

More to follow in my next post …

Categories
Customer service Engagement Marketing

Employees Personify the Brand

In his blog, From the Marketing Trenches, Jonathan Dampier reinforces the critical role employees play in presenting a company’s brand to the public.  And he laments the fact that there are organizations out there who still don’t get it.  (As consumers, we all have our horror stories about these companies.)

With the best intentions and creativity, a company can put out a spectacular marketing message; i.e., the brand promise.  But if the customer’s experience – as actually delivered by employees – is inconsistent or conflicts with the company’s marketing message, who are customers gonna believe:  the marketing or their own experience?

That’s why organizations need to be reminded that employees ARE the brand.  As Len Berry, marketing professor at Texas A&M, so aptly put it: “the brand walks around on two feet.”

Categories
Engagement Marketing

Keeping Up with Employee Communication

My last post covered the results of a research study that found a distressing number of organizations failed to effectively communicate to employees the purpose of their jobs along with their corporate mission & strategy.

It’s not as if organizations don’t have enough communications tools to use.

Check out New Frontiers in Employee Communications: 2005 featured in Christopher Hannegan’s blog. Christopher heads Edelman’s Employee Engagement Practice.

Here are the key findings from Edelman’s survey on employee communication trends:

  • While in-person communication was found to be the most effective tool for general employee communications, it is not the tool most frequently used; i.e., cost-effectiveness does not equal communication effectiveness.
  • Communicators have a much greater awareness of new communication tools over the past year.  Despite high awareness of blogs and wikis, these tools aren’t being applied for internal or external communication.
  • Most standard communications policies do not yet include guidelines covering the new tools, notably employee blogs.  The absence of such guidelines puts companies and their blogging employees at risk (depending on blog content and tone).

Note: For more info on employee blogs, check out Edelman & Intelliseek’s white paper: Talking from the Inside Out: The Rise of Employee Bloggers.

Bottom Line

There’s no lack of available communication tools – both new and traditional – in organizations.  And there’s certainly no lack of content to be communicated.  The key is to focus on what employees need to know in order to do their jobs, apply the appropriate communications tools, AND find the right balance between too little and too much information.

Categories
Engagement Marketing

Companies Fail to Engage, Connect with Employees

Here are some scary statistics from a recent survey by IABC (International Association of Business Communicators) and Right Management Associates:

  • nearly half (48%) of 472 organizations surveyed acknowledged that their management failed to effectively communicate to employees the purpose of their jobs and their business mission and strategy
  • only 37% of those surveyed said their employees are effectively aligned with their organization’s mission and vision.

Talk about a disconnect!

Internal Marketing Fundamental

Effective communication is one of the basic precepts of internal marketing – to engage employees, an organization needs to communicate (at a minimum):

  • what the organization stands for (i.e., its mission, vision & values)
  • what its goals & objectives are (strategy), and
  • what is expected of employees in helping achieve the mission & strategy (where they fit in “the big picture”).

How can employees effectively help their organizations move forward if they don’t know where it’s going or what is expected of them?!

Consider this

I’ll avoid going off the deep end here (no wringing of hands or gnashing of teeth).  And I won’t waste time pondering the many reasons why this happens in organizations.

My question, dear readers, is this: where would your organization find itself in this survey? And if you think you’d be in the company of the 48% above, what will you do to improve your situation?

Categories
Engagement Marketing

Goodbye, Peter Drucker – You’ll be Missed

I had to comment on the recent passing of Peter F. Drucker, aka the “father of modern management.”  I’ve followed his teachings throughout my career, especially as my work in services marketing evolved to focus on internal marketing and nonprofit marketing.

Drucker was truly a visionary who advocated:

  • Employee value … “People are a resource and not just a cost.”
  • Customers as the focal point of business … “To satisfy the customer is the mission and purpose of every business.”
  • Marketing as “the distinguishing … unique function of business” (see Customers above), and
  • the Importance of the Social Sector … “The nonprofit exists to bring about change in individuals and in society.”

Here’s my favorite quote from Peter Drucker, and it comes to mind every time I finish up an internal marketing session:

“If a client leaves this room feeling he has learned a lot he hadn’t known before, he is either a stupid client or I’ve done a poor job as a consultant.  He should leave saying, ‘I know all this — why haven’t I done anything about it?'”*

Thank you, Peter, for your incredible legacy.  You’ll be greatly missed.

*Note: No offense meant to those who attend my internal marketing programs; I truly value their interest & willingness to learn more about it.  Most feel internal marketing is intuitive and already buy-into the concept (hence my experience of “preaching to the choir”) … the challenge is getting more organizations to put it into practice.