19. Why Do Strategies Fail?
Lack of Validation
– Strategies are often designed without customer
input that links to business performance
Lack of Alignment
– Employees are not engaged and fail to carry out the
tactics that support the strategy
– The corporate culture has not communicated the
Importance of the strategy or established clear
accountability
20. Simple Strategy For Long-Term Growth
Make validated, data-driven decisions
– Validation – Your Customers have positively indicated
that the strategy will improve your relationship and
increase their spend with you
Align employees to deliver on the validated strategy
– Alignment – Your employees are on board and fully
informed about their role in the strategy
21. Validating Your Strategy
Gather un-biased customer data that either
proves or disproves your hypothesis
Design your strategies so that they provide
value to your customers. Value that will
positively impact your organization’s
performance
23. What is Customer Engagement?
Your Customer’s
psychological commitment
to the organization
Level of commitment has
huge impact on
profitability
Strategies can be validated
by studying “Engagement
Drivers”
24. Why Measure Customer Engagement?
Helps us understand what
drives business performance
with Customers
Allows us to understand what
conditions must exist to build
a better relationship, thereby
increasing profitability
25. Customer Commitment Index (CCITM)
• Overall Satisfaction
• Likelihood to continue to do business
• Likelihood to recommend Loyalty
• Organization stands above most
others in its commitment to Differentiation
customer service
• Organization shows Customers
Respect
they really appreciate their
business
• Can always trust organization
to keep its promises Trust
26. Driving Customer Engagement – Sales
• People showed genuine enthusiasm 5.7
for their jobs and for their customers
• My salesperson always put my needs 3.6
first & had my best interest at heart
• People made me feel confident they 3.2 Fully
can tackle the toughest challenges
2.1 Engaged
• How well problem was handled (if had
one)
1.9
• People took real pride in being best at
what they do; driven to make things (Odds Ratios)
better
27. Aligning Your Organization
Leverage the engagement of your employees
to drive better performance
Create clear expectations and
communications so that each employee
knows their role
Measure the level of employee commitment
to gauge the organization’s alignment
33. What is Employee Engagement?
Employee Engagement = Business Performance
34. What is Employee Engagement?
Psychological/emotional
commitment to an
organization
Engagement happens with
each interaction
Managers are responsible for
each employee’s level of
engagement
35. Why do we Measure Employee
Engagement?
Engaged teams are more
productive, profitable, and
efficient
The level of Employee
Engagement can be changed
37. Engaged Employees are more willing and
able to engage their Customers.
Sales teams in the top quartile for
“My Engagement” are 3.4 times
more likely to earn high Customer 3.4 High
Sales Customer
Engagement scores than teams Engagement
with lower Employee Engagement
scores.
38. Employee Commitment Index (ECITM)
The basics of
My Job the workplace
My My
organization Manager Perceptions of
Employee loyalty manager behavior
and pride
My Customers My Team
Teamwork, trust
Perceptions of
Customer care My Growth
Perceptions of
growth trajectory
39. Summary
Validate your strategies by obtaining Customer
feedback that draws a clear correlation between
your strategy and business performance
Align the organization around the strategy by
understanding the state of the work
environment, then removing barriers so
Employees can deliver on the strategies
Validation: Southwest terminals – tvs, AMR investing in 1st class seat installsAlignment: Sysco SAP investment wasted
Talking Points:Sales Engagement Drivers – these are odds ratios. These results are based on the composite data from all Advance Group dealers. If someone gave a “5” to People showed genuine enthusiasm for their jobs and for their customers, then they are 5.7 times more likely to be Fully Engaged. These odds ratios identify the most important things a dealership can do to drive Customer engagement. Some things are not easy or able to be “trained in.” The items shown here are likely best achieved in terms of hiring practices and job alignment of the appropriately talented individuals. (Change slide)