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Internal branding strategies are used to significantly reinforce an organization’s corporate purpose, values and culture. These strategies ultimately raise the level of employee engagement and consequently have an incredibly positive impact on your business.

In reality, external and internal branding are almost identical, so leveraging internal branding will be a natural extension of your business. Below is a quick comparison of each.

External Branding
Builds customer loyalty
Shortens the buying cycle and increases repeat business
Increases in brand preference

Internal Branding
Increases in employee loyalty
Increases in employee productivity
Increases level of employee’s alignment with the company

Who Decides What A Brand Stands For?
One myth we need to debunk before we go any further is this: Most people think that the marketing department defines the external company brand. This is not true; customers define the brand. Customers enter a store, visit a website or talk to a company representative on the phone. When the experience is over, they make their own conclusions about the company and its brand. The external brand is ultimately defined by the customer experience. They are the judge and jury to the meaning of any corporate brand.

The lynchpin to the success of an external brand is the company employee. The employee has the power to weave the company brand into every customer experience. The only way to make sure that a brand is translated correctly is to integrate it at the employee level through an effective internal branding strategy.

Which Type Of Branding Is More Important—External Or Internal?
Although it may seem counterintuitive, internal branding is more important than external branding for the success of a business. A strong internal brand builds employee engagement, which compels employees to provide a higher level of service to customers. In the end, the high level of service will build a positive customer experience and deliver an equally strong external brand to the marketplace.

I can make this claim because I have seen it happen inside my own company. Years ago, I thought internal branding was a nice idea but not a realistic strategy to build a business. However, I had a change of heart and implemented a number of internal branding strategies with the ultimate goal of building a highly engaged workforce. Today my company is stronger, inside and outside, then it has ever been. I am a true believer in the power of internal branding with promotional products.

In my experience, employee engagement programs are the most effective way to create and sustain an internal brand. An employee engagement program is designed to reward employees who do their work with their brain and their heart—these employees are engaged.

The link between rising levels of employee engagement and positive business outcomes is growing stronger all the time. A recent study by The Gallup Organization found that engaged employees are:

• 18 percent more productive
• 16 percent more profitable
• Generating 18 percent higher earnings
• 12 percent better at engaging customers
• Creating 2.6 times higher growth rates
• Reducing quality defects by 60 percent

Employee Engagement And Employee Recognition
The experts recommend using an employee recognition program as a base for a dynamic engagement program. Promotional products are the source for effective recognition programs. When a company does this, employees who are recognized with promotional products know that what they are doing counts. Employees receive immediate feedback and become more productive; increasing customer satisfaction and company profits, according to a report by Northwestern University’s Forum for People Performance Management.

Companies favor employee recognition programs to increase engagement levels because they are measurable and produce results. A recent study conducted by World at Work reveals the following data:

• 86 percent of organizations have recognition programs in place
o 70 percent of those offer between three and six different programs
• In the next 12 months, 90 percent of these organizations plan to continue their programs
• Organizations implement recognition programs in order to:
o Honor years of service
o Create a positive work environment
o Motivate high performance
o Create a culture of recognition
o Increase morale

The factors listed above are exactly what an organization needs to increase employee engagement and build strong internal and external brands. Imprinted promotional products continue to be the most cost effective marketing medium to increase brand awareness!

Chuck Dahlgren is the president and CEO of Crystal D (UPIC: CRYSTALD), one of the industry’s leading recognition award companies. www.crystal-d.com