Forget your most important customer?


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We have always known how important it is to communicating well internally in order to help make the sales and operations teams more customer-centric. You can do all the data-mining in the world, develop stunning, game-changing insights, and it can all fall flat in the field (and often does).

This analysis, from South Africa, is the first I have seen that quantifies the value of effective internal communications on employee engagement and the impact on the bottom line. In terms of return to shareholders, companies with “effective internal communications” have 33% higher return to shareholders than companies who do not rate themselves as effective. That result is driven by a 4.5x higher level of employee engagement — wow.

Use these results as part of the “sell” — what you have to do to convince senior management that people don’t just do what they are told because it is part of their jobs, but because they are reached and motivated frequently and effectively.

Then set your benchmarks and measure like crazy to show the ROI in your organization.

According to the Watson Wyatt 2005/2006 Communication ROI Study, which analysed the communication practices and financial results of US and Canadian employers between 2000 and 2004, companies with effective internal communications were 4.5 times more likely to report high levels of employee engagement than other companies. Employee engagement, in turn, also had a positive impact on their bottom lines, with companies with the most effective internal communication programmes achieving a 91% total return to shareholders (TRS), versus 58% TRS among ineffective communicators.

Republished with author's permission from original post.

Mark Price
Mark Price is the managing partner and founder of LiftPoint Consulting (, a consulting firm that specializes in customer analysis and relationship marketing. He is responsible for leading client engagements, e-commerce and database marketing, and talent acquisition. Mark is also a RetailWire Brain Trust Panelist, a blogger at and a monthly contributor to the blog of the Minnesota Chapter of the American Marketing Association.


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