Internal branding values ignored

Terry Behan, MD of The Fearless Executive and a specialist in the field of brand success, says: "Companies spend millions on building a brand only to disable it by neglecting to communicate with their employees on what the brand stands for and how to deliver it to its customers.

"Without ongoing brand integration, the promises made to customers are fundamentally not achievable. As we move into an experience driven market, bridging the divide between what a brand says and what a brand does is key to the protection of market share and growth."

Behan says few companies get this right because of the silo mentality within company departments, management's resistance to change and a lack of know-how in the basics of branding at the operational level: "These shortcomings are universal and not peculiar to any one industry. However it is a sobering thought that brands that do get it right out-perform their competition by a ratio of three to one.

"Executive management have to start recognising that their people are their biggest brand asset and that employees deliver a performance everyday that shapes a brand either positively or negatively in the minds of the consumer."

According to Behan there is a direct correlation between customer service and increased revenue. He quotes the figures as a 1% improvement in employee loyalty equals a 2% improvement in the bottom line: "In a study done in 1994, it was established that companies that consistently focus on developing a strong corporate culture over a period of several decades out-performed companies that didn't by a factor of six and out-performed the general stock market by a factor of 15.

"And between 1999 and 2002, companies with highly engaged employees generated a staggering 200% higher three year returns to shareholders than low commitment companies."

Behan says that leadership alignment needs to take place in order for brand participation to filter down through the company to all levels. Processes need to be put in place with supporting systems and an employee focused culture needs to be developed, which has been summed up so well by Richard Branson: When asked who his customers are, he replied they are his staff.

Behan adds: "The recipe for closing the brand gap is firstly based on a company's complete understanding of what its brand should mean to its target audience. Once this is established, a full independent brand audit needs to be conducted. This allows for benchmarking of the results of a customised brand behaviour improvement programme, which is inculcated into the culture of a company.

"A company's brand is nothing more than the promise made to its market and once all of its people are acting in accordance with that promise - the business will be in perfect alignment. Only then will it be possible to enjoy business leadership and an increased bottom line that comes with owning a powerful brand."