CEO contact with the public a driver of sales
When public relations professionals approach their customer engagement strategies, one of the biggest issues they will often face is trying to convey authenticity and build a connection with the public. As CEOs have become public figures for many organisations, the personalities and reputation of senior managers are increasingly being used as a PR resource. Communications…
When public relations professionals approach their customer engagement strategies, one of the biggest issues they will often face is trying to convey authenticity and build a connection with the public. As CEOs have become public figures for many organisations, the personalities and reputation of senior managers are increasingly being used as a PR resource.
Communications from the C-suite can also have a measurable impact on company performance, at least according to recent research from Michigan State University (MSU).
The research looked at customer retention rates at an up-market restaurant and measured the impact of an email from the CEO thanking patrons for dining with them, sent within a week of the meal. The study found that individuals who received this email were 50 per cent more likely to make another purchase at the restaurant.
The party size on these return visits also increased significantly, with returning patrons bringing a larger number of individuals with them when they dined a second time.
Importantly, the email needed to be delayed by a few days. Emails sent instantly after a diner left a restaurant had very little impact, while those sent within a week had the greatest impact.
Clay Voorhees, MSU associate professor of marketing and lead author of the study, suggested this exercise also outranked other efforts to engage with the public – such as offering a rewards program.
“These findings suggest that simple, sincere gestures are enough to drive feelings of gratitude among consumers,” said Mr Voorhees. “Sweetening the pot with rewards really didn’t matter.”
For businesses, the study reveals the importance of finding the right tactics for engaging honestly and sincerely with the public, especially at the CEO level. By building corporate communications that meet this need, companies can evoke the right feelings among the public and in turn drive greater sales.
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