Employee Engagement and Ambassadorship - Beyond Philosophy Webinar

www.beyondphilosophy.com
Linking Employee
Engagement and Employee
Ambassadorship
Driving A Successful Customer-Centric Culture
Through Employee Commitment to the Company,
the Value Proposition, and the Customer

Your Beyond Philosophy hosts…
Colin Shaw
Founder & CEO
Michael Lowenstein
Principal

We are Customer Experience Thought-Leaders
3
We work globally with offices in
London and North America;
with associate experience in
Middle East, Africa, India & Asia
Customer Experience is
all we do!
Customer Experience is
all we do.. Since 2002!
Thought leadership is our
differentiator. We have
written 4 books
We are an evidence based
consultancy
We maintain links with
academia to keep us ahead
of the latest trends
We focus on the emotional
and subconscious side of
customer experience i.e. we
are experts in this area
Beyond Philosophy © All rights reserved. 2001-2013

www.beyondphilosophy.com 4
We have dealt with many large organisations
Beyond Philosophy © All rights reserved. 2001-2013

Increase in Net promoter Score: “As a
result of its customer experience efforts,
NPS has improved from -10 to +30”
Increases shipping volume. “Maersk
correlated a 4 point increase in Net
Promoter Scores with a 1% increase in
additional volume shipped by customers”.
Training improves Net Promoter Scores
in local regions. “The 55 regions that
have set up local councils also received a
three-day training course in customer
experience improvement methods. The
result: of participating local offices showed
a 10 points higher score on their NPS than
those offices that opted out”.
Beyond Philosophy © 2001-2012
All rights reserved.

www.beyondphilosophy.com6
EMOTIONAL
Based on Trust
• Sense of personal relationship with brand or company
• Reinforced by service experiences
• Supported by customer touch points
RATIONAL
Based on Satisfaction
• Relationship based on meeting functional expectations
• Reinforced by ongoing performance quality
• Value for the money
RATIONAL CONNECTION
EMOTIONAL
CONNECTION
Defining Rational and Emotional Bonds
For Customers

EMOTIONAL
Based on Trust and Commitment
• Sense of personal relationship with company
• Participation and contribution, belief in direction
• Alignment with culture and values
• Opportunities for advancement and growth
• Recognition and reward
• Accomplishment
RATIONAL
Based on Satisfaction
• Salary and benefits (including training)
• Safety and environment
• Opportunities for advancement and growth
RATIONAL CONNECTION
EMOTIONAL
CONNECTION
Defining Rational and Emotional Bonds For
Employees

Linkage of Stakeholder Groups
Customers who actively (vocal, level of favorability,
reduced consideration set, etc.) express their personal
commitment to a supplier can be strongly positive
(advocates), neutral, or negative (saboteurs).
Employees, similarly, can significantly impact customer
loyalty behavior toward their employer through a range of
attitudes and behaviors on behalf of the brand, company
and customer. These attitudes and behaviors, like
customers, can range from highly positive, to indifferent, to
highly negative.

The Role of People…
Why They Can Be So Critically Important
70%41%68%
…of customers LEAVE
because of poor
employee attitude
…of customers are LOYAL
because of a good
employee attitude
…of customer
brand perception
is determined by
experiences with PEOPLE
UK retailer:
1% increase in employee commitment =
9% increase in monthly sales
Enterprise IG
Source: Parkington and Buxton, Study
of the US Banking Sector, Journal of
Applied Psychologyy
Source: MCA Brand Ambassador
Benchmark
Source: Ken Irons, Market Leader

Why Do Customers Stop Doing Business With a Firm?
Why Do Companies Lose Customers?
• Customers who complain to an organization and
have their complaints satisfactorily resolved, tell
an average of 5 other people about the good
treatment they received, and 20 people if they
receive poor treatment.
• Of the customers who register a complaint,
between 54% and 70% will do business with the
organization again if their complaints are
resolved. This figure goes up to 95% if the
customers feel the complaints are resolved
professionally, quickly and proactively, depending
upon both systems and positive employee
attitudes and behaviors.
The Technical Assistance Research Program (TARP) studies show:

Further Proof Points of Employee
Attitude/Action Linkage to Customer Behavior
Northwestern University: Study in hotel chain showed that, for
‘The extent to which employees try to satisfy customers’, a 10%
increase in this factor resulted in a 22% increase in customer
spending per hotel visit.
Sears: Study in 800 stores showed that a 5 percent
documented improvement in employee attitudes toward their
jobs and commitment to the company directly resulted in a 1.3%
increase in customer perceptions toward the retailer and, in turn,
a .5% increase year-over-year revenue.
Royal Bank of Canada: Studies have shown that level of
employee commitment accounts for 60% to 80% of customer
satisfaction; and 40% of the difference in how customers view
RBC’s services can be linked directly to their relationship with
bank staff.

Customer-Employee
Perceptual Gap Profiling
A Customer-Centricity Two-Sided ‘Mirror’

Conceptual Model of Service Quality
(Berry/Parasuraman/Zeithaml SERVQUAL Model, Updated in 2000)
Word-of-Mouth
Communications
Personal Needs
Expected Service
Perceived Service
Service Delivery
Service Quality
Specifications
Management Perceptions
of Customer Expectations
CUSTOMER
PROVIDER
Past Experience
External Communication
to Customers
GAP 1
GAP 5
GAP 3
GAP 2
GAP 4

Employee ‘Mirror’ Research:
Customer-Supplier Perceptual Gap Profiling
Valuable staff debriefing device
Counterpoint for customer research findings; adds significant,
unique insight
Alignment determination is foundation for training and process
improvement
Can be utilized for employee incentive and motivation
programs
Effective for staff communication continuity

15
Purchasing Agents Sales Mgmt
Marketing
Mgmt
Perceptual Gap Profile
Purchasing Agents vs. Sales Mgmt vs. Marketing Mgmt
1. Consistent product/service quality
* Based on % high (5) performance ratings on a 5-point scale
0% 40%
High Performance*
50% 60% 70%30%20%10%
2. On-time performance/delivery
3. Knowledge of needs & requirements
4. Proactive communication
6. Accurate billing
7. Competitive pricing
8. Quick, responsive problem solving
9. Accessibility of supplier contact/
service staff
10. Attention to details
11. Rapport/relationship with supplier
12. Knowledge/expertise of supplier
contact staff
13. Value-added service support
14. Ability to anticipate your needs
15. Dependability of supplier contact staff
16. Flexibility and adaptability of supplier
17. Availability of multiple communica-
tion channels with supplier
18. Availability of multiple purchase
channels
5. Speed of follow-up: requests/inquiries

Measuring Customer and Staff Alignment
0%
20%
40%
60%
80%
100%
Product, Service
Knowledge
Interest in My
Needs, Goals
Follow-through on
Problems
Responsiveness Makes Me Feel
Part of a Special
Group
Anticipates My
Needs
Inspires My Trust Gets Answers
Quickly
Staff All Customers HNW Customers
Significant
misalignment
* Based on % 6/7 performance ratings on a 7-point scale

Perceived Performance Gap Profile
Staff vs Special Education vs Mainstream Subject Areas
High Performance*
Special Education MainstreamStaff
70% 90%50%30%10%
* Based on % high (5) performance ratings on a 5-point scale
1. Simplicity of materials
2. Appropriateness of materials for reading levels
3. Overall cost
4. Responsiveness to service requests
5. Shipment accuracy
6. Range of mainstream materials available
7. Range of remedial materials available
8. Effectiveness in helping reach teaching goals
9. Overall graphic content
10. Contemporary nature of material
11. Speed of order delivery
Overall Performance

Mirroring (Overall) – Satisfaction with Performance
Areas
67%
42%
28%
53%
47%
50%
40%
38%
53%
58%
40%
49%
36%
39%
35%
35%
44%
Service quality/Netw ork reliability
Service management or problem resolution
Pricing
Technical support staff
Service activation or installation
Sales or account management
Ordering/Booking
Billing or invoicing
Overall reputation
Q820 How satisfied or dissatisfied, overall, do you feel LLL’s external customers would say they are with the organization’s performanceon . . . ?
Base: Employees– Total (n=4552); Group A – Total (n = 69-101); Group B – Total (n=239-260)
 Chart displays Top 2 Box Scores
(ratings of “6” or “7”)
35%
38% *
Employee Rank Ordering
of Importance(#1)
* Top 2 Box score from employees. Note: Attributes are rank-orderedby CMG/WMG/EMGimportance.
14%
36%
33%
16%
20%
30%
19%
2
7
4
6
8
9
3
1
5
Top 2 Box score
from employees
overall. Top 2 Box score
from Group A
customers,overall.
Top 2 Box score
from Group B
customers,
overall.
The importance employeesthink
customersattach to the specified
attribute/area.

Employee Mirroring:
Customer Need Importance Perceptual Gaps
Relative Importance Of Issue
.00 .10 .20 .30
Product Reliability
Tech Support
Customer Service
Product Features
Customers
Employees
Actual vs. Perceived Customer Needs

Employee
Satisfaction,
Values, and
Loyalty
Employee
Engagement and
Alignment
Employee
Commitment and
Ambassadorship
(Advocacy)
Employee Attitudes and Behaviors Research
Employee Research Approaches

Definitions of Employee Research Concepts
and Methods
Employee Satisfaction and Loyalty – Identifies employee attitudes and
behaviors leading to job satisfaction and employer loyalty
Employee Engagement and Alignment – Identifies employee attitudes
and behaviors leading to agreement with, and belief in, overall company
mission and objectives, as well as ‘fit’, or alignment, and productivity within
organizational culture
Employee Ambassadorship – Identifies the most active level of employee
commitment to the company’s product and service value promise, to the
company itself, and to optimizing the customer experience. It is linked to,
but distinctive from, the productivity and empowerment elements of
employee satisfaction, engagement, and alignment research because its
emphasis is building customer bonds through employee interaction.

Customer Commitment
and Advocacy
Optimizing Customer Experience
and Relationships
Linking Customer and Employee Commitment
to Business Results
Strong
Correlation
Weak and Intuitive
Correlation
Customer Loyalty
TQ and
Satisfaction
C
U
S
T
O
M
E
R
R
E
S
E
A
R
C
H
E
M
P
L
O
Y
E
E
R
E
S
E
A
R
C
H
Employee Commitment
and Ambassadorship
Employee Engagement and
Alignment
Employee Satisfaction &
Loyalty
Now Now
1990’s 1990’s
1980’s and earlier 1980’s and earlier

Many Ways to Define Employee Engagement
Analysis conducted by The Conference Board in 2006 showed
that, among twelve leading engagement research companies,
there were 26 key drivers, of which eight were common to all:
- Trust and integrity – How well do managers communicate and 'walk the talk‘?
- Nature of the job – Is it mentally stimulating day-to-day?
- Line of sight between employee performance and company performance – Do
employees understand how their work contributes to the company's performance?
- Career growth opportunities – Are there opportunities for growth within the company?
- Pride about the company – How much self-esteem do the employees feel by being
associated with their company?
- Coworkers/team members – How much influence do they exert on the employee’s
level of engagement ?
- Employee development – Is the company making an effort to develop the employee's
skills?
- Relationship with one's manager – Does the employee value relationship(s) with
manager(s), and is there trust and credibility between the levels?
Typically, little or no mention/inclusion of ‘customer’ or ‘customer
focus’ in measures or analysis of employee engagement. Though
customer experience, and resultant behavior, is impacted by
engagement, it tends to be more tangential than purposeful in nature.

Building Our Framework/Model:
The Two Components of Engagement
Commitment to Company - Commitment to, and being positive about,
the company (through personal satisfaction and an expression of pride),
and to being a contributing, and fully aligned, member of the culture.
Commitment to Value Proposition - Commitment to, and alignment
with, the mission and goals of the company, as expressed through
perceived excellence (benefits and solutions) provided by products
and/or services

Employees That Score High on Commitment to the Company and
The Value Proposition Are Considered Engaged
Company
Value
Proposition
Engaged

The Three Components of Employee Ambassadorship
Commitment to Company - Commitment to, and being positive about, the
company (through personal satisfaction and an expression of pride), and to
being a contributing, and fully aligned, member of the culture.
Commitment to Value Proposition - Commitment to, and alignment with,
the mission and goals of the company, as expressed through perceived
excellence (benefits and solutions) provided by products and/or services
Commitment to Customers - Commitment to understanding customer
needs, and to performing in a manner which provides customers with
optimal experiences and relationships, as well as delivering the highest
level of product and/or service value.

Employees That Score High on Commitment to the Company, The
Value Proposition, and the Customer Are Considered Ambassadors
Company
Customer
Value
Proposition
Ambassador

Employee Commitment Categories
Employee Ambassadors (Advocates) – the most active level, representing employees
who are strongly committed to the company’s brand promise, the organization itself, and
its customers. Also, and importantly, they behave and communicate in a consistently
positive manner toward the company, both inside and outside.
Positive Loyalists – employees who exhibit positive feelings about their job and emotional kinship with the company.
They are favorable about the company, overall, have every intention of remaining with the company, and actively and
positively perform on its behalf. Though their communication about the company to others is infrequent to nil, when
they do communicate, the messages are largely positive.
Indifferents– employees who are generally satisfied with their jobs but rather ambivalent to mildly
positive about the company overall, their relationship with it, and its products. They may communicate
some generally positive messages about the company to others, but rarely and inconsistently.
Disinterested Seatfillers – employees who, because of their lack of interest, favorability toward or kinship with the
company and its products, either do not communicate positive messages about the company internally or externally, or
do not communicate at all. For these minimally involved members of staff, employment with the company is ‘just a job’,
and very little more.
Employee Saboteurs – employees who, though still drawing a paycheck from the
company, are active, and frequently vocal, detractors about the organization itself, its
culture and policies, and its products and services. These individuals are negative
advocates, communicating their low opinions and unfavorable perspectives both to peers
inside the company and to customers, and others, outside the company

Comparisons of Key Results
Fram & McCarthy Employee Brand Champions and Employee Ambassadorship
Low to High
Brand Loyalty
(Difference in %
Points)
Saboteur to
Ambassador
(Difference in %
Points)
Attitudes Toward Employer
• Organization is well-managed +27 +62
• Like the company +32 +65
• Proud to work for company * +20 +64
(Comparative) Attitudes Toward Employer’s
Products/Services
• Number of product/service features +20 +30
• Overall product/service quality +32 +33
• Overall value of products/services +27 +37
• Perceived prestige of organization +24 +36
* = Element of employee ambassador technique

Mirroring Diagnostic Elements
(Top 2 Box Scores – 7 Point Scale)
Employee Ambassadors were dramatically more likely to rate Las Vegas
Hotel/Casino highly when compared to Saboteurs
41%
38% 40%
44%
49%
38%
43%
73% 71%
79%
84%
71%
7% 8% 9% 11%
5%
34%
44%
33%
25%
37%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Guests are
committed to
continuing their
relationship
with the hotel
Guests are
loyal hotel
customers
PercentTop2Box
Guests would
continue to stay
at the hotel
because of the
high level of
personal service
they receive
Guests would
continue to stay
at the hotel
because of the
fun and fulfilling
experience it
provides
Guests All Employees Employee Ambassadors Employee Saboteurs
Guests would
continue to stay
at the hotel
because of the
value of what
they receive for
the price
Guests would
continue to stay
at the hotel
because of the
exceptional
quality of the
experience

Swing Voter Analysis
of Employee Ambassadorship
“Swing voter analysis” for employees, as it does in politics,
deals with how to move the undecided and leaning “voters” into
the desirable camp and how to avoid moving them into the
undesirable camp.
In multivariate terms, this approach is the same as discriminant
function analysis
In this case the desirable camp is the Employee Ambassador
group and the undesirable camp is the Employee Saboteur
group.
In particular, this analysis shows how to move the Indifferents, the middle
group, into the Ambassador camp.
It also shows which attributes put at risk the same middle group, the
Indifferents, that are closest to becoming Saboteurs

Saboteurs
Indifferents
Employee
Ambassadors
What turns indifferent employees into ambassadors?
What turns indifferent employees into saboteurs?
Ambassador/Saboteur ‘Swing Voter’ Analysis
(Discriminant Function Analysis)

Swing Voter Analysis
Importance Scores for Selected Attributes (“Swing Up” To Ambassadors, “Swing Down” To
Saboteurs)
Swing
Up
Swing
Down
I trust the hotel 28% 4%
My work gives me a sense of personal accomplishment 8% 4%
The hotel is focused on attaining the highest quality possible 7% -
Overall value of service provided 6% 23%
I very much enjoy doing my job 6% 10%
I feel a lot of stress at work 6% 6%
The hotel is very loyal to its employees 6% 2%
My immediate supervisor 4% -
The hotel will do whatever it takes to makes guests happy 4% -
I have a clear understanding of the hotel’s mission, goals, and objectives 2% 13%
The extent of diversity of co-workers - 8%
I am very committed to my work 2% 5%
Delighters Dissatisfiers Dual effects

Ambassadorship Groups
By Selected industries (Sorted by % Ambassadors)
Total Base = 4,312 Industry N >/= 70)
Industry Unconnected Indifferent Ambassadors Total N Total %
Religious /Non-Profit Organizations 12.8 55.6 31.6 117 100
Construction (heavy/special trades) 24.3 47.3 28.4 74 100
Legal Services 26.4 50.6 23.0 87 100
Insurance 23.2 58.5 18.3 82 100
Banking and Finance 28.2 55.0 16.8 131 100
Healthcare and Social Assistance 27.3 56.2 16.5 557 100
Engineering Services 31.5 52.2 16.3 92 100
Other Services 32.5 51.2 16.3 166 100
Education 25.2 58.5 16.2 702 100
Technology Services 25.5 59.1 15.4 149 100
Retail Trade 36.9 51.2 11.8 287 100
Arts, Entertainment, and Recreation 22.9 65.7 11.4 70 100
Public Administration /Government 30.5 58.7 10.8 223 100
Accommodation and Food Services 36.0 53.5 10.5 114 100
Manufacturing 37.5 52.9 9.6 293 100
Telecommunications 31.1 59.5 9.5 74 100
Transportation and Warehousing 40.0 51.0 9.0 100 100
Administrative Support Services 36.5 58.4 5.1 137 100

Relevant and
Actionable Validation
Leveraging Employee
Ambassadorship

Employee Loyalty*
By Ambassadorship Group
Saboteur Indifferent Ambassador Total
Low 61.0 3.2 0.0 19.8
Medium 38.5 84.3 27.3 61.9
High 0.5 12.5 72.7 18.3
Total 100 100 100 100
 Overall, how would you rate your organization as a place to work?
 If a friend or a family member were to consider applying for a job at your
organization, how strongly would you recommend it as a place to work?
 I feel very loyal to my organization.
* PLS factor of the following three metrics:

How Often Say Good Place/Bad Place To Work
by Ambassadorship Groups
Rarely/Never 55.5 7.0 0.9 20.4
Sometimes-Very Often 42.4 63.6 13.4 49.6
Almost Always/Always 2.1 29.4 85.7 30.1
Total 100 100 100 100
Good
Place
To Work
Bad
Place
To Work
Rarely/Never 50.5 86.5 98.1 77.7
Total 100 100 100 100

How Often Say Good/Bad Products/Services
by Ambassadorship Groups
Rarely/Never 46.0 7.9 1.6 18.1
Total 100 100 100 100
Rarely/Never 64.9 88.9 97.3 83.1
Total 100 100 100 100
Good
Products/
Services
Bad
Products/
Services

Examples of Corporate Employee Ambassadorship
Programs
Zappos
- One of the company’s 10 core values is “Deliver WOW Through
Service”, and the culture is focused on building the best customer
experiences.
Hewlett-Packard
- Several times a year, HP ‘Demo Days’ program has current/retired
employees volunteer and train to spend days at local electronic
retailers as company brand ambassadors
NCR
- Ambassadorship program created to drive customer loyalty and
advocacy, and enhanced company culture, for customer-facing and
non customer-facing employees. Employees are recruited and trained
in customer interaction soft skills, and NCR overall company and
brand information. Program participants are also required to report
back on their experiences as ambassadors.

Best In Class Customer Service
Directly Linked to Business Results
Creating Employee Ambassadors
Employee
Ambassadors
Engaged
Employees
Employees
An “Ambassador” is an employee
who promotes NCR both
internally and externally
Creating Customer Advocates
Customer
Advocates
Satisfied
Customers
Customers
An “Advocate” is an customer
who promotes NCR within or
beyond their own company
Leadership/Engagement
NCR Customer and Employee Linkage Model

NCR Employee Ambassador Program Summary
Currently open to all Services employees
Special invitations to those identified via survey
2-3 hour initial training requirement to become an ambassador
Training Covers: Ambassadorship, in general and at NCR; Company information,
including branding; Customer Interaction soft skills – Customer Service,
Professionalism, Communication skills
Welcome letter, gift, and access to SharePoint site provided upon completion of
training
Expectations of Ambassadors
Participation in ambassador opportunities – PR, Marketing, Community Relations,
Internal Communications (based on availability)
Incorporate ambassadorship into everyday activities
On-going training
Periodic reporting back
Benefits for Ambassadors
Welcome gift
Broad and sometimes advanced access to information
Special ambassador events and professional development opportunities
Reward program to acknowledge extraordinary contributions

Nine Employee Ambassadorship
Best Practices
Build a climate of trust and authenticity
Train, train, train (and cross-train in customer sensitivity and
value proposition)
Make certain everyone has a career path
Provide frequent evaluations/contribution reviews
Seek to inform, seek to debrief, and be transparent
Recognize and reward customer-focused initiative
Don’t just ask employees what they want, provide it
By all means, have fun
Hire the ‘right’ employees in the first place
Source: Customer WinBack, Jill Griffin and Michael Lowenstein

Concluding Thought
“Every Honeywell employee is a brand ambassador. With each
customer contact, and whenever we represent Honeywell, we
have the opportunity to either strengthen the brand or cause it
to lose some of its luster and prestige. Generations of
Honeywell employees have built our powerful brands with their
hard work, spirit of innovation, passion for quality, and
commitment to customers. I am counting on every Honeywell
employee to continue that legacy.”
Message from
David Cole, Chairman and CEO
Honeywell International, Inc.
August, 2004
to company’s 120,000+ employees

Based on Ambassadorship-Based Research,
What Actions Should Companies Be Taking?
Employees, at all levels and in all functions, need to have a
thorough understanding of what is important to customers
so that their actions match customer expectations and
performance requirements.
Employees’ behavior needs to be aligned around positive
customer experiences and customer loyalty.
Management must build processes, technology, training,
reward, recognition, and organizational/cultural practices
that support employees being able to optimize customer
experience.
Companies should evaluate the effectiveness of metrics
associated with delivering customer value – financial and
non-financial performance, addressing customer life cycle,
amount of cross-functional collaboration to support
customers.

Colin Shaw
Founder and CEO
Email: Colin.Shaw@beyondphilosophy.com
Michael Lowenstein
Thought Leadership Principal
Email: Michael.Lowenstein@beyondphilosophy.com
Thank you!

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