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September 2006. Enterprise Relationship Management Bringing Together Brand, Internal Marketing and Human Resources. Overview. Enterprise Relationship Management Background The Differentiator The Objectives Internalising Brand ERM Benefits Case Studies MWeb Business - mpower
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September 2006 Enterprise Relationship ManagementBringing Together Brand, Internal Marketingand Human Resources
Overview • Enterprise Relationship Management • Background • The Differentiator • The Objectives • Internalising Brand • ERM Benefits • Case Studies • MWeb Business - mpower • Planet Fitness - BOOST
Relationship Management Background • External Relationship Management upsurge since early 90’s (CRM) • Business systems gearing, telecentres, database, etc • Growth in loyalty initiatives, points-based programmes, clubs, etc • Big financial commitment with limited return • Mid-90’s saw a re-evaluation of RM initiatives - assessment of their value, ability to change behaviour and contribution to client loyalty
Relationship Management Background • The missing element was “identified” • Customer relationships depend on “dialogue”, on satisfaction of core needs and delivery on core expectations • Customer satisfaction achieved through service excellence and a positive brand experience are key to customer retention • At minimum the hygiene factor must be right – in fact, today, “delight” is becoming the norm • Research outcomes clearly indicated the need for ERM, for internal relationship management and marketing
Relationship Management Background • Customer loyalty cannot be achieved without a dedicated, passionate, educated and focussed internal team – at every level, each supporting the next • Standards setting becomes critical • Such standards and customer expectations are best communicated via a structured and architected programme where reward and recognition are intrinsic and a sense of belonging/improved internal loyalty are the objectives • The outcome of a well designed programme is improved Performance Management, “housed” within a named and structured programme
The Differentiator • Product – it’s a parity market • Pricing – seldom sustainable • Place – it’s a virtual world • Promotion – can differentiate, but then your brand is only as good as the customer’s experience • People – that’s the differentiator • Your customerexperiences your people, your people’s efficiency, people’s friendliness, people’s care – it’s a high touch world! • Your employees give you the edge
STRONG BRAND AND COHESIVE CULTURE STAFF Added value experience and offerings - “belonging” COMPANY Loyalty, “extra milers” for better bottom line / customer reward CUSTOMER WIN WIN WIN ERM Outcomes
Brand engagement internally to facilitate external engagement! Medium/Low Model Source: Enterprise IG The Objectives
Company Ambassador Leader and Decision Maker Established Staff Member ”Apprentice” New Employee ERM Objectives Stability and brand advocacy begins with human resources UNITY, TRUST, DIALOGUE, PRODUCTIVITY, PROFITS
A Quick Look at Brand • A brand is created by all the elements in the marketing mix working together, consistently, to create a clear prejudice in its favour among its customers. A brand has a place in people’s minds and in their hearts – staff and customers • A brand relationship is built on trust, expectancy and consistency • Brands that delight the external customer have internal staff (customers) who support and personify the brand • Brand affinity is difficult to break … which is exactly where we want staff to be …. in a meaningful, emotional and mutually satisfying relationship with the brand WHAT’S YOUR INTERNAL BRAND STATUS?
Internalising Brand • We want staff to live and project the brand • Greater culture, harmony and stability through internalisation • Educated, passionate and committed staff • High performers with a common vision, focussed on achieving business objectives A CUSTOMISED ERM PROGRAMME, DELIVERED VIA A RELATIONAL DATABASE, “POSITIONED”, STRUCTURED, MULTI-CHANNEL AND SEGMENTED… BEST ACHIEVES INDIVIDUAL AND ORGANISATIONAL OBJECTIVES AND GROWTH
Source : Reichheld Employee Referral Customer Referral Customer Retention Customer Selection Annual Employee Contribution Efficiency Training Hiring Years Service Adding Value • How long term employees create value 1 2 3 4 5 6 7 8
ERM Sets You Apart • Employers of choice attract best quality • An open platform to inculcate a culture of ownership and entrepreneurship • Align with global trends - staff from technicians and product peddlars tosolution providers • From paperwork to people work • Entitlement doesn’t fit the new rule book - its about staff adding value throughcreativity and relationships • ERM provides the platform
In Summary … • The result of a well planned and executed ERM Programme: A sound, cohesive and ongoing drive for corporate excellence, by happy, motivated and knowledgeable staff • “You have to look at leadership through the eyes of the followers and you have to live the message. What I have learned is that people become motivated when you guide them to the source of their own power and when you make heroes out of employees who personify what you want to see in the organisation.” – Annita Roddick, The Body Shop –
Case Studies MWeb Business Planet Fitness
MWeb Business mpower
An “embryonic” programme, commenced early this year Addresses culture/vision issues arising due to the amalgamation of Tiscali and Mweb Supports the building of a culture of service excellence towards internal and external customers Addresses areas for enhancement, identified via internal research Gets staff to “live the brand” and become advocates Adds an educational component to facilitate staff learning and skills development Adds “fun” into the organisation! Programme Overview
Driven by EXCO and identified “Champions/Change Agents” A phased programme designed with 3 phases – Phase 1 is nearing completion Architected across 3 Pillars: Pillar 1: Who is MWeb Business? Pillar 2: Who am I? Pillar 3: Who are we? (The company, me, the customer) The dominant theme of customer runs throughout the programme Each Pillar is colour-coded, facilitating ease of engagement and aiding re-call Each Pillar incorporates an OD intervention The architecture combines a classic ERM Programme methodology and adds a rewards/loyalty component – a cheque book of vouchers used by the MD who “catches” someone doing it right, or going the extra mile Programme Overview
This modern and fresh ERM programme will achieve its objectives within the next 12 months and provide an incredible platform for MWeb to do better business in a positive and motivated environment!
Programme Overview • A fledgling programme designed to re-energise Planet Fitness and to address key issues, identified from research – 8 months into the programme • The need to coach, mentor and empower staff are key to the programme construct and are form the bases of the OD interventions which are integrated into BOOST • Runs across 11 clubs – a “de-centralised” model supported by LD’s Relationship Hub • A combination of traditional communication elements plus high-tech and high-touch • Designed around key identified pillars each addressing a certain change requirement • Key to the programme is enhancing of internal communication and personal engagement • A key objective was to originate and get staff to live “The Planet Fitness Way”
Programme Overview • In-line with the Ritz Carlton methodology, a process of 15 minute “line-ups’” has been originated. • Everyday at a set time, each shift within each gym meets, to address, in a high-energy environment, key issues. There is a learning for the day and news is shared • All components of a traditional ERM programme are integrated into BOOST, plus a loyalty component • Some 80 job functions have been identified, KPI’s have been refined, and a limited number of these KPI’s selected for rewarding of staff – based on the principle that improved behaviours yield incremental revenue • Additionally, certain “cookie cutter” behaviours have been identified for standardisation across gym’s and for consistent customer experience • Reward pertains to individuals, teams, clubs and regions • LD has defined all the behaviour measures and created simple metrics enabling the accumulation of currency/”boosters” which are awarded for achieving certain behaviours
Programme Overview • As staff reach defined thresholds, so they are able to go on-line or into a catalogue, and via the outsourced Hub, can redeem their currency in exchange for rewards • This programme focuses on recognition as well as reward – the latter being of relatively small value. Line-ups are used to “recognise” • Just 8 months into the programme, communication has improved dramatically, staff are engaging, talking and caring more • Customers are noticing a change in those clubs where the personnel have embraced the programme • Overall – still in Phase 1 this programme has delivered motivated and enthusiastic staff who are having fun and through the daily line-up’s are consistently being educated on the “Planet Fitness Way”
