We’ve talked before on this program about the link between employee satisfaction and customer loyalty. And actually there is widespread acceptance that energized, engaged employees produce more satisfied, loyal customers. Books, articles, and tons of research have been written about this seemingly simple formula. But is it true…is there really a “happy employee = happy customer” formula? According to my guest today, yes. But it's not as direct as you may think. In fact, he says it's rather indirect.

Back with me today was Rick Garlick. He’s the Director of Consulting and Strategic Implementation for Maritz Research and I asked him to talk about the results of a recent Maritz Research poll of employees representing a cross-section of industries to better understand what employees can tell us regarding their role in producing a positive customer experience.

The indirect nature of the happy employee=happy customer relationship has to do with the fact that there is no direct correlation between the two. Rather it is a long series of elements that come into play that indicate a cause/effect relationship. He does a much better job of explaining this than I ever could so you'll have to listen to the show to get his view.

But there are two excellent take aways from the show today...

1. Toward the end of the program Rick suggest four straightforward things that senior leadership, mid-level managers, and line employees can do immediately to make a significant and positive impact on customer loyalty through employee satisfaction.
2. Rick emphasized the importance of organizational alignment and ensuring that policies and procedures made it easy for employees to satisfy customer needs. This was a common theme in the show as today's myopic focus on operational efficiencies in companies is a root cause of customer dissatisfaction.

A great topic and very practical insights for anyone wanting to make a positive change in customer satisfaction rates through employee engagement and relations.

-- David Kinard, PCM

Posted by David Kinard at 12:39 PM | Permalink | Comments (0) | TrackBacks (0)

A recent report by the Selig Center on the multicultural economy and multicultural purchasing power projected that in 2009 the combined buying power of the three racial groups of African Americans, Asian Americans, and Native Americans will more than triple its 1990 level of $456 billion, and account for 14.1% of the nation's total buying power. That’s more than $1.3 trillion folks! Add in the Hispanic ethnic market segment, and it is obvious why marketers recognize that it would be economically ill-advised to not aggressively go after these diverse segments.

If we add in the Hispanic ethnic market segment it becomes increasingly obvious that marketers must recognize the economic advantages of aggressively going after these diverse segments. However, you may not have the right team to meet the relevancy these groups demand.

With me today to talk not just diversity in marketing, but also the diversity of marketers is Jerome Williams. He’s a distinguished professor in communications at the University of Texas, Austin, and vice chair of the AMAF.

I asked about the symbiotic relationship between academia and the marketplace, and Williams described it as this:

...increased diversity among marketing faculty leads to increased diversity among students majoring in Marketing at all levels, which in turn leads to greater diversity in individuals working in marketing and advertising departments. This in turns leads to marketing and advertising programs that are more sensitive to the needs of consumers from diverse backgrounds.

We also talked about how most of today's marketing principles are based on a very white and mainstream perspective. Williams noted:

…with an increasingly diverse population, it becomes questionable whether theories developed and tested for, by, and of the dominant consumer group (i.e., White, Euro-Americans) can be appropriately applied to ethnic minority consumer groups (e.g., African-Americans, Hispanics, Asian-Americans, etc.), who perhaps differ in terms of household compositions, values, lifestyles, self-perceptions, and aspirations. A significant challenge facing marketing researchers will be to adapt the methods and approaches that have been successful with non-minority populations to the special circumstances of racial/ethnic minorities.

Overall a great program for anyone interested in sensitizing their marketing, and even for anyone interested in making a difference by mentoring or contributing to the success of minority marketing students. Williams highlighted two ways.

1. Contribute to and be a part of the AMA Foundation' s Valuing Diversity Scholarship Program.
2. Contribute to and be a supporter of the Ph.D. Project.

-- David Kinard, PCM

Posted by David Kinard at 12:21 AM | Permalink | Comments (0) | TrackBacks (0)