Internal Market: Selling the inside
When you think of marketing, you more than likely think of marketing to your customers: How can you persuade more people to buy what you sell? But another “market” is just as important: your employees, the very people who can make the brand come alive for your customers. Yet in our work helping executives develop and carry out branding campaigns, my colleagues and I have found that companies very often ignore this critical constituency.
Why is internal marketing so important? First, because it’s the best way to help employees make a powerful emotional connection to the products and services you sell. Without that connection, employees are likely to undermine the expectations set by your advertising. In some cases, this is because they simply don’t understand what you have promised the public, so they end up working at cross-purposes. In other cases, it may be they don’t actually believe in the brand and feel disengaged or, worse, hostile toward the company. We’ve found that when people care about and believe in the brand, they’re motivated to work harder and their loyalty to the company increases. Employees are united and inspired by a common sense of purpose and identity.
Unfortunately, in most companies, internal marketing is done poorly, if at all. While executives recognise the need to keep people informed about the company’s strategy and direction, few understand the need to convince employees of the brand’s power—they take it as a given.
Employees need to hear the same messages that you send out to the marketplace. At most companies, however, internal and external communications are often mismatched. This can be very confusing, and it threatens employees’ perceptions of the company’s integrity: They are told one thing by management but observe that a different message is being sent to the public. One health insurance company, for instance, advertised that the welfare of patients was the company’s number one priority, while employees were told that their main goal was to increase the value of their stock options through cost reductions. And one major financial services institution told customers that it was making a major shift in focus from being a financial retailer to a financial adviser, but, a year later, research showed that the customer experience with the company had not changed. It turned out that company leaders had not made an effort to sell the change internally, so employees were still churning out transactions and hadn’t changed their behavior to match their new adviser role.
Enabling employees to deliver on customer expectations is important, of course, but it’s not the only reason a company needs to match internal and external messages. Another reason is to help push the company to achieve goals that might otherwise be out of reach. In 1997, when IBM launched its e-business campaign (which is widely credited for turning around the company’s image), it chose to ignore research that suggested consumers were unpre-pared to embrace IBM as a leader in e-business. Although to the outside world this looked like an external marketing effort, IBM was also using the campaign to align employees around the idea of the Internet as the future of technology. The internal campaign changed the way employees thought about everything they did, from how they named products to how they organised staff to how they approached selling. The campaign was successful largely because it gave employees a sense of direction and purpose, which in turn restored their confidence in IBM’s ability to predict the future and lead the technology industry. Today, research shows that people are four times more likely to associate the term “e-busi-ness” with IBM than with its nearest competitor.
Perhaps even more important, by taking employees into account, a company can avoid creating a message that doesn’t resonate with staff or, worse, one that builds resentment. In 1996, United Airlines shelved its “Come
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