Internal brand engagement rarely adds to bottom line, report says

The majority of internal brand engagement programmes do not improve the financial performance of an organisation, and the people who run these programmes tend to be less excited about these than external marketing activity, a new report shows.

The report by comms agency Involve, which surveyed 150 marketing, brand and customer experience directors from a variety of industries, found just 46 per cent said internal brand engagement had improved financial performance. Six per cent said it delivered no benefit.

It also found 60 per cent of the respondents were slightly or significantly less excited about these internal activities than their external marketing activity, mainly due to lower creativity and expenditure in these programmes.

However, respondents did point to other benefits of such programmes, with 94 per cent saying they improved staff motivation, and 91 per cent saying they improved customer experience.

The report found 69 per cent of companies used internal brand engagement programmes during the launch of a new product or brand, making it by far the most common time for these programmes, compared with 47 per cent of respondents saying they ran them regularly but not tied to a specific event, and 20 per cent saying they used them at the time of changes in senior personnel.

Jeremy Starling, managing director of Involve, said: "Most marketing and brand directors understand the value of engaging their employees, but external marketing activities are still thought of as more prestigious and influential.

"Employees are a company’s most powerful weapon; its best brand ambassadors in fact. Only employees can deliver the lofty promises that a brand makes to its customers, and involving your people in how to do that is the most effect way of guaranteeing a truly differentiated customer experience."

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