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The Pros and Cons of Social Media Automation

Posted: 19 Dec 2013 06:37 AM PST

The Pros and Cons of Social Media Automation image social media marketing2 300x300Social media gives people a unique opportunity to connect with others and share ideas all around the world. While individuals make great use of social media to stay connected with friends and family, businesses are also using social media as a marketing strategy. What makes some businesses effective with social media while others flounder in the vast sea of social media content? While some businesses may have the resources to hire someone to focus on their social media strategy all the time, many don’t, and with all the other responsibilities employees have as well as the many tasks that need to be accomplished, it can be difficult to spend even a fraction of the time necessary to maintain an effective social media strategy.

Social media automation is one solution for increasing social media effectiveness. It allows social media users to create content and schedule their posts to be shared on a variety of different social media platforms throughout the day. Sounds perfect, right?

While there are many benefits to using social media automation, it’s important to also realize some of the drawbacks before committing to using it as part of a social media strategy.

The Pros of Social Media Automation

Convenience

Probably the most obvious benefit to automating social media content is the convenience. With programs like Hootsuite, Buffer, and even Facebook's own scheduling system, you can create content and schedule it to appear at a specific time on multiple platforms. This is great for companies operating on multiple social sites and need a way to quickly post messages to each of them.

Reaching More People More Often

With the added convenience of automation, users can schedule their posts for the most valuable times throughout the day—the times when their followers are most active and engaged. Automation allows businesses to post their content when it is most likely to be seen and make an impact, which is especially important for sites like Facebook, where when you post matters for your overall reach.

Delivering Content Consistently

The convenience also allows businesses to ensure that they are constantly updating their platforms with new content. Consistency in delivery helps a business to build a loyal following because they’ve proven they’re reliable. Even if something unexpected comes up, automation allows a business to still meet their audience’s expectations by ensuring that updated content is delivered on time.

The Cons of Social Media Automation

Potential for Neglect

When a business uses automation—especially if it’s business on the busy side of things—it can be easy to let the social media aspect of the business to get neglected. If your automated posts aren't monitored for their overall impact, posts can quickly become irrelevant and your audience could leave. Businesses also lose out on vital opportunities for human connection by using a third-party app instead of posting and interacting by hand.

Potential Loss of Human Connection

Social media is meant to be just that: social. An effective strategy is about building relationships. However, if a business falls into the trap of neglecting their social media strategy, human connections are negatively impacted because of the lack of interactivity between the brand and the audience. A complete reliance on automation can strip a business of the opportunity to respond to the questions and concerns of its audience in real-time.

Posting During Tragedies/Emergencies

Automating content can unfortunately create some negative opportunities when potentially insensitive posts are shared during a time of tragedy or emergency. Businesses need to remember that automation ensures consistency in their delivery, but this is an area where it can backfire on them. An example of a social media fail in the midst of tragedy was when Guy Kawasaki’s Twitter continued to post and re-post his content after the Boston Marathon bombing. The posts stuck out in the midst of a stream of other posts about the tragedy. When someone suggested he turn his tweets off, he responded negatively. Many people found this to be insensitive.

The Pros and Cons of Social Media Automation image GuyKTweet6

Is Automation Right for Me?

Knowing the pros and cons of social media automation allows you to better decide if this method is right for your business. However, no matter if you choose it or not, you should follow these simple tips to avoid social media disasters:

  • Stay connected. Businesses need to keep in mind that social media provides the opportunity to build relationships and gain a loyal following. Therefore, automation should supplement the genuine human component of a social media strategy.
  • Keep the audience in mind. Being sensitive to when tragedy strikes is just one way to keep the audience in mind. It’s also important to give people content they need when they need it, even—and maybe especially—during an emergency.

By being aware of the pros and cons of automating social media content, any business can increase their social media effectiveness.

Google Plus: 6 Reasons You Should Be Using It

Posted: 19 Dec 2013 06:11 AM PST

Social networking platforms run the gamut of features, usage patterns, and adoption, and Google Plus is no different. If you are in the social media marketing game, you should already know a lot about Google Plus. That includes the biggest knock on it as a social media platform – that adoption remains too low for most social marketing professionals to care.

But hey, times change and 2014 is upon us. If you haven't gotten on board with Google Plus yet, now is a great time to re-evaluate your reasons for not doing so. While you are reflecting on it, take a moment to review our reasons for using Google+ below. No matter what your overall goals are, there is a place for Google Plus in your overall strategy.

1. Google Plus Adoption Is Increasing Rapidly

Google Plus is no longer a fledgling platform aiming to get on the map. It has surpassed every other social network aside from the almighty Facebook. Multiple sources have reported this growth, going all the way back to the early part of 2013.

Take a look at the numbers from the second quarter of 2013, as reported by Jeff Bullas, below.

Google Plus: 6 Reasons You Should Be Using It image Social media facts figures and statistics 2013 1

SOURCE: http://www.jeffbullas.com/2013/09/20/12-awesome-social-media-facts-and-statistics-for-2013/

With such widespread and growing adoption, user engagement on the site has been on the upswing. Like all social networks, Google Plus gives you as much value as you put into it. If you spend time curating good content, connecting with the right people, and generally helping out where you can, you'll find that it isn't quite the ghost town many have made it out to be.

When you also consider Facebook's missteps regarding privacy, news feed ads, and now auto-play video advertising, the opportunity for Google Plus to kick in the door and push for the top spot is ripe for the picking. Regardless of what you think about Google, when they set their minds to achieving something significant, they hit the mark more often than not.

2. Content Indexes Quickly When Posted on Google Plus

Among the SEO sect, it is common knowledge that links posted to Google Plus are not only DoFollow (as opposed to the standard NoFollow on most social networking platforms), but they also cause the page being referenced to index very quickly. We have tested this on both our own content and others. Especially if you or your client is less knowledgeable in SEO, this is an easy way to get content crawled and indexed without having to dig into more technical items such as managing an XML sitemap or pinging the new page from a ping service.

Did you also realize that Google Plus updates themselves are automatically indexed by Google and can rank for keywords or semantic matches to the text in the update? That makes for a second SEO opportunity to rank. One thing I like to do is to share the link to the original content, which targets a primary keyword. Then add a description with another variation of the keyword to position yourself for some semantic or long tail upside.

3. Authorship Markup Improves SERP Visibility

Although studies have come out in 2013 claiming that Authorship Markup adoption is high, the reality is that most of those adopting it are within the communities of tech writing, SEO, content marketing, and similar areas. Most enterprises are still not on board fully, as it highlights individual authors rather than just pushing the brand and the company's products.

I can't stress strongly enough how much of a competitive advantage authorship can provide for your search presence. Not only does it position you as a key author / entity on Google, with special expertise in your area of focus, but it also helps increase CTR in the SERPs.

For those of you who are unfamiliar with how authorship markup modifies your SERP listings, take a look at my own listing below from Return On Now.

Google Plus: 6 Reasons You Should Be Using It image Tommy Landry Authorship Markup

Similar to all the other benefits of Semantic Markup, the addition of the thumbnail in the above listing helps highlight it among the other results on the page. According to a study fielded by Catalyst Search Marketing, rich snippets such as authorship markup can improve CTR by as much as 150%!

4. There Are Some Great Google Plus Communities

Google Plus: 6 Reasons You Should Be Using It image Google Plus CommunitiesThis is more from my own personal observation, but I've managed to find some great and vibrant communities that stay active on Google Plus. Similar to Facebook Groups and LinkedIn Groups, not all communities are a hit. Some of them start off with a lot of momentum but fall off a cliff in short order. Others stay active intermittently, but not enough to stay top of mind.

And then there are the groups that curate participants and content carefully, have great moderators, and incite a great deal of useful conversation. I have at least two solid SEO groups on Google Plus that are great for discussing the latest Google algorithm antics and the best ways to manage semantic markup for SERP visibility. Yes, they are uber-geeky topics, but surely you can find at least one or two communities of value in your own area of focus. For me, this stuff is fascinating and important.

5. Google Plus Activity Already Impacts Local SEO

I recently came across a guest post on Search Engine Journal by Sergiu Draganus, which summarized a study to identify what the most important ranking factors were for the local carousel. The results were very interesting to say the least.

Google Plus: 6 Reasons You Should Be Using It image Google Local Carousel Organ

Google properties, including Google Plus, are incredibly important to the carousel. They are also very impactful on the 7-pack of local results, which is still important when it appears in the SERPs. Check out Sergiu's overarching observations from the data he collected below:

The correlation chart indicates that Google considers its own factors as the most important:

qty of +1-es on Google+ Business Page
qty of +1-es on URL
number of reviews on Google+
number of citations
rating score in Google+

As you can see, nearly all of the top factors are related to Google Plus. If you operate a local store or other facility where customers can visit you, it would be in your best interest to start taking Google Plus / Pages and your overall Local SEO strategy seriously heading into 2014.

6. Publisher Markup: Poised To Make An Impact

Are you aware of what Publisher Markup is? Similar to Authorship Authority, Google is clearly analyzing ways to assign authority to publishers, i.e. websites across the web.

As of now, publisher markup is available and recommended but not really impacting SERPs or ranking in any discernible manner. However, the very fact that Google has established it has rather large potential implications.

For one, it allows website owners to verify that they are real entities with Google, much like authors can establish themselves as individual entities. While that has value for verification of authenticity (a key component of the Google Plus strategy), I am convinced that there is more to it.

Many of us write for multiple websites. For example, I write my own content on Return On Now, but also contribute to Search Engine Journal, CMSwire, Social Media Today, and other websites. Since there is no clear hierarchy of ownership between a publisher and an author, Google needs some way to verify identities without forcing one entity to be a subset of another.

Enter Publisher Authority.

If your website is a verified entity and you are a verified entity, then Google can one day start incorporating rankings according to both website and author authority. They keep telling us not to worry about PageRank and other legacy authority metrics, and I'm convinced that this is the center of a new authority measurement system they have in the works.

Summary

There are many more reasons to consider using Google Plus more actively, but these six are enough to keep me engaged with the platform. If I am right about the publisher authority commentary above, 2014 is stacking up to be a very important year in the evolution of SEO and Google's ranking approach. I, for one, can't wait to see where this all takes us.

Now go sign up for Google Plus already!

3 Stats About the Not-So-Secret Weapon of Marketing Automation

Posted: 18 Dec 2013 11:00 AM PST

3 Stats About the Not So Secret Weapon of Marketing Automation image charts graphsA recent study by Lenskold Group and The Pedowitz Group reveals some interesting stats about the state of marketing automation and which marketers are using it successfully. Let's take a look at those numbers so we can learn more about what this means for you.

63% of Companies That Are Outgrowing Their Competitors Use Integrated Marketing Automation

This is an impressive stat. It tells us that if you want to grow—and if you want to beat your competition—there is some advantage to be found in marketing automation. Marketing automation has increasingly become a not-so-secret weapon for businesses seeking to grow their customer base, and the voice-based component is just one more tool to keep in the arsenal. Marketing automation for lead gen uses emails and web forms, and voice-based marketing automation is just a building block to supplement that foundation, using call analytics from your marketing ads and campaigns to improve results and voice broadcasts, IVR phone surveys, and SMS texts to generate more phone leads. Used separately, they are excellent. Used together, they are unstoppable.

40% of Higher-Growth Companies Are More Likely to Use Marketing ROI to Assess Campaigns

This stat is a definite sign of marketing smarts. Marketers who keep an eye on what generates leads and what doesn't and use that information to make decisions about campaigns are on the right track for truly optimized marketing strategy. There is a critical gap, however, that even the smartest marketers don't always know how to fill, and the voice component of marketing automation can do the job. If we're not tracking phone calls, then our picture of our ROI isn't complete. When prospects pick up the phone to call, traditional marketing automation can't track that event, but voice-based marketing automation can patch that leak.

78% of High-Performing Marketers Indicate That Marketing Automation Systems Are More Responsible for Improving Revenue Contribution

Marketers know the value of impressions, clicks, and leads, but smart marketers know that what really matters is revenue. Tracking your online conversions is one thing: downloads via web forms, newsletter signups, email list registrations are all great data points and should be tracked. Tracking phone calls, and more importantly what drives those phone calls, is also extremely important in order to understand how well your marketing efforts are performing. However, what you really need to know is how those online and phone leads get moved through your sales funnel to revenue. That's how you really understand ROI. So if you want to see what is contributing to revenue, the buck doesn't stop with just marketing automation: you need to automate your voice interactions as well.

These stats tell us that marketing automation is no secret: companies across many industries are using it to improve their business. The secret, then, is the combination of marketing automation and voice-based marketing automation: a double whammy that is sure to take your campaigns to the next level. To learn more, download this free white paper, Tracking Phone Leads: The Missing Piece of Marketing Automation.

Top 16 Social Media Predictions For 2014

Posted: 18 Dec 2013 05:47 AM PST

Top 16 Social Media Predictions For 2014 image iStock 000029456582Small

For me the New Year is always an opportunity to look back on what we have learned, how we have grown and focus on where we are going.

Seems like just yesterday we were writing out predictions for 2013, excited for where the year would take us both personally and professionally.

2013 delivered a wake-up call for many brands. Smart business leaders realized (if they hadn't already) that social media is here to stay. They also started to understand it's much deeper than a tweet stream or Facebook page. Smart brands know it's about social integration, about taking steps toward being a social business more than it is learning how to tweet.

It's a journey, not a destination. There is not some magical end point that a brand can boldly claim, "we are a social business." Instead, it is a journey of transformation, learning and growing. It's about becoming more humble and transparent than ever before. We must embrace imperfect perfection and embrace the fact that authenticity trumps perfection at every stage of social business evolution.

So what's in store for 2014? I could write on this for days but finally landed on 16 top predictions for now. Would love to hear your thoughts and if you agree with me. What are your predictions?

16 Social Media Predictions for 2014

1. Brands will begin to learn what it means to be a social business.

Now that the hype of Facebook is settling in, the Facebook algorithm is tanking and the excitement to build fan pages is decreasing, brand leaders will accept the only way they are going to see the positive side of the ROI equation is to roll up their sleeves and get to work. There is no fast track, magic pill or social media made easy button. Businesses of all sizes must know their audience, define their goals and align social where it can have the most positive impact. Business leaders must realize quickly, becoming a social business is a journey, not a destination.
Read-> Can Your Social Business Touch Its Toes? and Time to Grow Up! Social Businesses Mature, Yet Many Still Lack a Strategic Foundation (Brian Solis)

Top 16 Social Media Predictions For 2014 image iStock 000014976597XSmall2. Can't buy me love.

The fallacy some brands fell to believe that buying fans is a recipe for success will be put to bed in 2014. Marketers will get a big wake-up call that they should not have and should not ever put their social eggs in one basket, particularly a social network basket you do not own. You can not buy fans, friends, relationships. Relationships take time to nurture and don't always happen at first tweet. Brands must learn to invest in communities and the human beings within them. Brands will only get as much as they give. Watch Video-> Is Your Social Community Listening?

3. Experts will argue about social business semantics vs focus on the problems.

Arguing over social business semantics will continue. While the self proclaimed experts spend the first few months of 2014 arguing about if we should be referring and using terms such as social business, the smart business leaders, marketers, consultants and agencies will be implementing and solving real business problems. Go on, argue away. We'll have our heads down making real business happen. Read-> Quit Telling me What Words I Can't Use in Social Business

4. Human beings at the core.

Top 16 Social Media Predictions For 2014 image photodune 6249533 hand xs2Human beings have been and always will be at the core to social media and social business. Social media is about people, relationships and conversations that happen 1:1. It is human beings who are behind the avatars. It's humans who listen, read, click, like, follow, share and talk about your brand. Brands must realize that it is human beings they need to inspire, not just Facebook algorithm and scientific formulas. The heartbeat of social media is you. The question is will you be a healthy, contributing part of social media in 2014? Watch Video-> Heartbeat of Social Media is You

5. Branded content and native advertising will take center stage.

You will see branded content and native advertising become an increased focus for smart brands. Brands will continue to struggle with where, when and how to implement. Key challenge will also be in measurement. Branded content can offer unique opportunities for brands to better inspire, connect with their target audience in fun and unique ways. Native advertising will become a must do vs want to do or try for brands that want to see real traction, penetrate new markets and keep the eyeballs and hearts attentive to their brand.

6. Brands become the media, and buy it too.

Not only will more brands finally realize and understand the opportunity to "BE" the media, they will also purchase the media platforms vs build themselves. Agility, reach and community building will be key goals that will drive such actions. Brands will continue setting up newsrooms, production studios and innovating new ways to quickly create compelling and relevant content in multiple formats to inspire, engage and entertain their audience with agility. Read-> You Are the Media!

7. Smarter workforces.

Top 16 Social Media Predictions For 2014 image photodune 4162365 human capital concept in tag cloud xsAccording to a recent study from IBM, 71% of CEOs believe human capital is a key source of sustained economic value. The real question is will they put their money where their mouth is. The smart ones will. Employees are the greatest asset and potentially the best brand evangelist you can have. Social media doesn't transform your organization when you jump on Facebook. Social media reveals your organization, good and bad. Investing in the human beings within your organization is time, effort and money well spent. Data, analytics, technology, and mobility will all play critical roles in this advancement of smarter, more agile, collaborative and innovative workforces. Read-> Humans at the Core of 2014 Social Trends; #GetRealChat with #IBMConnect

8. Social listening is not an option, but a requirement.

Social listening is not for the rich and famous. Brands of all sizes will start to understand that they must invest in social listening strategies, tactics and technologies to truly understand, inspire and connect with their audiences. Managing and protecting brand reputation must start from the inside out. They must listen not only to their external audience but also to what their own employees are doing. The conversation must become two way on all fronts. Ignoring what is being said to or about you is not a strategy, it's a band-aid and a recipe for disaster. Social media policies and crisis preparedness plans should be considered as a top priority in proactive brand and reputation management. Don't wait until a crisis happens to determine how you will handle such. Read-> Is Your Social Community Listening to You?

9. Brands will try to bridge the social digital divide, c-suite and beyond.

The digital divide is going to get wider before bridges are built. As the baby boomers age and begin to leave the workforce we run the risk of losing the subject matter experts, brand evangelists and knowledge as they escape to the tropics. Brands must find innovative ways to engage those both young and older who are not participating in social media today. We must leverage the technology they are comfortable with versus expecting them to become a Twitter rockstar from day one. Smart business leaders will see much success with these strategies and tactics when implemented correctly. Read-> Bridging the Social Digital Divide, C-Suite & Beyond

10. Mobile gets embedded in the DNA of strategic marketing and business plans.

Top 16 Social Media Predictions For 2014 image photodune 3673280 customer service on smartphone showing online support xsIDC predicts there will be 1.3 billion mobile workers by 2015. It's no longer "should I build a mobile website or blog," it's now "how can I build the best possible customer experience both on and offline. Mobility must come first, not second or as a band-aid. Customers are not thinking "what device should I use that Brand A's website will look best on". Instead they will grab whatever device is charged and not stolen by their 10 year old, spouse or co-worker. You have approximately 5 seconds to deliver a good experience on your digital and social platforms or else they will go elsewhere. Read-> 1.3 Billion Mobile Workers by 2015; #GetRealChat Recap with IBM Social Business

11. Integrated platforms become a requirement, not an option.

Many brands will have an unfortunate wake-up call with the changes in organic social search, social network algorithms. Those who put their eggs in one social network basket such as Facebook are not going to be happy in 2014. They must now slow down to speed up. They must get in the head of their audience, define business goals and objective and build an integrated digital, online platform that provides a seamless user experience across their own properties and weaves in the value, communities and conversations of the social networks. They must know where their target audiences are hanging out and spending time so that they can best integrate and build a killer user experience that makes them come back for more, again and again.

12. Less is more.

Top 16 Social Media Predictions For 2014 image iStock 000010510308XSmall1Many business leaders will want to throw in the social business towel. After they attempt to throw in the towel, get fired or quit they will then realize they must dig their head out of the social sand. They need to set goals, objectives and focus on achievable strategies and tactics that they can implement with their given resources. They must cross as many things off of their list as they add to it! It's about making data driven decisions, doing more of the right stuff versus just doing more social stuff to beat out Facebook. Remember, that's what got most of them into trouble with the Facebook algorithm to begin with. Work smarter, not harder. Read-> Slow Down to Speed Up

13. Visual marketing gets more meaningful.

Thanks to the tanking of Facebook newsfeed algorithm, we may see a slow death of the "caturday" viral videos and images many lazy marketers have used to drive engagement. Marketers must look beyond vanity metrics and create compelling visual content that inspires, connects and most importantly drives desired action. Remember, unless your core business is a counseling center or psychiatrist, quit posting heart warming quotes with flowers and paisleys and cat photos 24/7. Brands that are doing this are diluting and damaging their brands more than helping it. Every image you post is a representation of your brand. Think quality images and visual connection, not just inflated Klout and other influence scores. Read-> Move From Social Media Buzz to Social Media Bucks

14. Communities become more formalized.

Top 16 Social Media Predictions For 2014 image communities create markets1Brands that invest in infrastructure for their communities will see improved results. People are overwhelmed with brands and community leaders begging them to join their communities. Brands must step up and be able to demonstrate why anyone should take the time to invest in their community and the people within it. Read-> Communities Create Markets, 13 Tips to Create Loyal Tribes of Brand Evangelists

15. Brands invest in earning loyal brand advocates.

Brands will better value and appreciate every action their community members take. They will no longer take their likes, follows, clicks, follows for granted. The number one question business leaders must still ask is WHY. Why should anyone follow or like you? Why should they comment, click, pin, post +1 or read your content? Why should they invest in you and your brand? Why should they give a rip you and your brand exists? Brands must give them value on the other side of each click, follow and like. It's what happens after the like that matters most. Brands will dive deeper into understanding the difference between a brand influencer, advocate and evangelist. Unfortunately to date, many have been treating them one and the same. The truth is they are not and should be nurtured far different.

16. Much earned media will become paid media.

The days of brands thinking they can tweet to top influencers, beg for free blog real estate and time and talent for free are coming to a close. Many thought leaders have been more successful than some large brands at building a digital platform and engaged community. They do not need the exposure or awareness from the big brand as much as the brands think they do. Industry thought leaders are being bombarded by these requests and they are tired of it. Brands must step up and offer more than a free seat to an event or a link on a website for an event they want the influencer to invest hours if not days attending and covering. If you want to play with those who can truly help you reach your target audience, you are going to need to pay, period.

"Get Fit Social Business Series"

Top 16 Social Media Predictions For 2014 image iStock 000022550389Small1We are going to help you get integrated and stomp the Random Acts of Marketing (RAMs) once and for all in this new series, "Get Fit Social Business."

Subscribe to the series to be notified of upcoming training, podcasts, videos, Google Hangouts, events and even an upcoming 2014 social business planning webinar!

This Trumps Customer Experience

Posted: 17 Dec 2013 06:30 AM PST

This Trumps Customer Experience image build a business

Is there really anything more important than a great customer experience?

A few weeks ago, I wrote a guest post for Jeannie Walters of 360Connext titled, A Great Customer Experience Trumps… . At the end of the post, I posed the question: “What trumps a great customer experience? Only one thing. Can you guess?

Today, I’m going to answer the question. Quite simply, the answer is: the employee experience.

I’ve been talking about the importance of employees in the customer experience equation since my days at J.D. Power and Associates 20 years ago, and yet, in the heat of customer experience design efforts, employees are forgotten.

Don’t believe me? There’s a ton of evidence out there now that makes the link between the employee experience and the customer experience and, ultimately, on business outcomes.

Temkin Group published their Employee Engagement Benchmark Study earlier this year, and here are some findings:

Among companies whose financial performance is significantly better than that of their peers, 75% of employees are highly or moderately engaged, compared to 47% at under-performing companies. Companies with a significantly better customer experience than their competitors, 75% of employees are highly or moderately engaged, compared to 34% at lagging companies.

Edelman put together a compilation of seven studies on employee engagement. One of those studies is by Aon Hewitt, and according to Edelman, it reveals:

Every one percent increase in employee engagement indicates a 0.6 percent growth in sales, accordingly to Aon Hewitt's 2013 Trends in Global Employee Engagement report. Applying this logic to a $5 billion company with a gross margin of 55 percent and 15 percent operating margin, a one percent increase in engagement would be worth $20 million – hardly pocket change.

Gallup has done a lot of research, as we know, on employee engagement. They recently published some findings:

In a recent study, Gallup examined 49 publicly traded companies with EPS data available from 2008-2012 and Q12 data available from 2010 and/or 2011 in its database. This study found that businesses with a critical mass of engaged employees outperformed their competition:

  • Companies with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147% higher EPS compared with their competition in 2011-2012.
  • Companies with an average of 2.6 engaged employees for every actively disengaged employee, in contrast, experienced 2% lower EPS compared with their competition during that same time period.

This graphic summarizes nicely how employee engagement drives business outcomes.

This Trumps Customer Experience image gallup impact of employee engagement

Towers Watson has conducted their own employee engagement research, and their findings show that companies with high levels of employee engagement saw a 19.2% increase in operating income, while those with low levels of engagement experienced a 32.7% decline in operating income.

An HBR article fr0m 2010 states this interesting statistic: “…some – including Starbucks, Limited Brands, and Best Buy – can precisely identify the value of a 0.1% increase in engagement among employees at a particular store. At Best Buy, for example, that value is more than $100,000 in the store's annual operating income.”

Beyond Morale offers an e-book with 99 interesting statistics about employee engagement, like this one:

Increased employee engagement was accompanied by a 12% increase in customer satisfaction and significant double‐digit revenue and margin growth over the past three years. -Serco Study

And this one:

Companies in the Best Companies to Work Study for in the period 2004 – 2008 increased their revenues by 94% and their profits by 315%.

In their Sharpen Customer Experience Focus with Employee Engagement report, Forrester cites this example:

Dell found that customer Net Promoter Scores (NPS) were twice as high for experiences delivered by highly engaged employees.3 And a meta study of 7,939 business units in 36 companies, published in the Journal of Applied Psychology, found that higher employee engagement scores correlated with higher customer satisfaction and loyalty measures.

Brian Gareau has put together a page of resources that highlights some of the research done over the last 10 years that proves the linkage between employee experience and business performance.

I’ve taken liberties in this post to skip right from the employee experience to business performance without mentioning the customer experience. We already know, with perhaps one exception, that a great customer experience drives business growth and success. What we fail to acknowledge is that the people behind the delivery of that customer experience must come more first.

Need one more bit of evidence? I could cite a bunch of other studies, but let’s go to the grandfather of all evidence, the Service-Profit Chain. Read the HBR article – as well as their follow-up, which shows how companies are applying its principles today – and the book(s).

This Trumps Customer Experience image Service Profit Chain

Image courtesy of HBRThis 1999 article from Harvard Business School’s Working Knowledge summarizes the work that Sears executives did to rebuild the company to focus on customers. The article talks about the new business model and what they discovered: “There is a chain of cause and effect running from employee behavior to customer behavior to profits.” Imagine this: their model is data-based. (See the notations regarding the colors/shapes in the sub-heading of the image below.)

This Trumps Customer Experience image sears model

Make no mistake. Employees who enjoy their work – are passionate about what they are doing and for whom they are doing it – deliver results. I wrote previously: Because of that enthusiasm and passion for the brand, for the business, employees are eager to contribute to its success. And when we’re all working together for the success of the business, I believe that, ultimately, customers will win, too. As will your shareholders.

If people relate to the company they work for, if they form an emotional tie to it and buy into its dreams, they will pour their hearts into making it better. -Howard Schultz

 
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