Internal marketing and employee engagement can be an effective brand building strategy. Employees are not simply cogs in a company wheel – they are the influential human face of the brand to consumers. Having a brand purpose can foster this level of employee passion and engagement. It is important to realise that the way a business markets itself not only impacts on consumers but also influences how it is perceived by prospective employees.

Definition

Internal marketing involves marketing to employees, which refers to any marketing communications efforts designed to appeal to prospective employees within the workforce, and internal marketing communications.

Key Insights

1. Customer-centricity won’t work if employees are not happy and engaged

Research by Glassdoor, the workplace welfare review site, looking at 293 large employers across 13 industries found a strong link between employee well-being reported on Glassdoor and customer satisfaction – with the highest customer satisfaction gains in industries with the closest contact between workers and customers, such as retail, tourism, restaurants, health care, and financial services. While the research did not prove causality, there were strong indications as, typically, employee satisfaction rises or falls before change occurs in customer satisfaction. Based on the research, there is a long-term financial benefit of employee satisfaction – it estimates a one-star improvement in Glassdoor ratings can boost long-term market valuations by between 7.8% and 18.9%, based on the expected improvement in customer satisfaction.