Internal Marketing: Importance, Strategy, Examples

These days, internal marketing refers to the strategies companies employ to promote their values, products, and services to their employees. It is a crucial part of an effective marketing strategy, and it’s something businesses should prioritize. In its simplest terms, internal marketing is when an organization promotes its mission, company’s vision, objectives, culture, products and services, and brand to its employees.

When companies market internally, they typically have different goals and intentions than when they market externally. With external marketing, a company is seeking to promote its brand outside of its company’s physical confines in order to make connections with customers and stakeholders.

The goal of internal marketing is to keep employees engaged, share information about the company’s activities, and help ensure employees possess a positive view of their organization’s culture and brand.

Additionally, internal marketing efforts can support employees in becoming brand ambassadors and advocates. In fact, brand messages reach 561% further when shared by employees vs the same messages shared via official brand social channels. In this way, a company’s employees can be seen as their most important marketing tools.

What is Internal Marketing?

Definition and Purpose

Internal marketing focuses on promoting a company’s products, services, values, and mission to its employees. The primary purpose of internal marketing is to increase employee engagement, satisfaction, and retention by ensuring they understand and support the company’s goals and objectives. By treating employees as “internal customers,” internal marketing helps create a positive and productive work culture. This, in turn, leads to improved customer satisfaction, increased employee loyalty, and ultimately, business success.

Importance of Internal Marketing

Employee engagement

There are many benefits associated with having engaged employees including helping build a better work culture, reducing staff turnover, and increasing productivity. Internal marketing can help workers understand their place within the organization leading them to become more engaged, motivated, and productive in their roles. A successful internal marketing strategy can significantly enhance employee engagement by aligning their roles with the company’s vision and goals. The benefits of internal marketing include enhanced employee engagement, alignment with the company's vision, and improved organizational culture.

Company culture

According to Inc., 73% of employees are more engaged when they believe they work for a purpose-driven company. When a company clearly communicates its mission and goals through internal marketing strategies, it will create an organizational culture that staff members are excited to participate in while also making the company a more positive place to work. Internal marketing campaigns play a crucial role in reinforcing the company’s mission and values, thereby strengthening the organizational culture. Educating team members on the company's mission can improve culture, drive motivation, and enhance communication within the organization.

Employee retention

By 2030, the US is going to lose $430 billion annually due to low talent retention. Employees often choose to leave their company when they don't feel valued or believe their organization is not a good culture fit for them.

Internal marketing is the perfect opportunity for leaders to remind their staff why their company is a great place to work and to highlight all the positive aspects of being an employee there.

Employee recruitment

Along with retaining employees, internal marketing is useful when it comes to recruiting new hires as it makes it easier to market job openings and attract talented employees. Effective internal marketing will show potential hires a culture of collaboration, communication, and positivity, making them much more eager to become a member of staff at the organization.

Benefits for the Company

Internal marketing offers numerous benefits for companies, including:

• Improved Employee Engagement and Satisfaction: When employees are well-informed and feel valued, their engagement and job satisfaction levels rise.
• Increased Employee Retention and Reduced Turnover Rates: A positive work environment and clear communication can significantly reduce the likelihood of employees leaving the company.
• Enhanced Customer Satisfaction and Loyalty: Engaged employees are more likely to provide better service, leading to happier customers.
• Increased Productivity and Efficiency: When employees understand the company's goals and feel motivated, their productivity and efficiency improve.
• Better Alignment of Employee Efforts with Company Goals and Objectives: Clear communication ensures that all employees are working towards the same objectives.
• Improved Brand Reputation and Advocacy: Satisfied employees are more likely to become brand advocates, enhancing the company's reputation.

Internal Marketing Strategies

Setting Goals and Objectives

To develop an effective internal marketing strategy, companies should set clear goals and objectives. These may include:

• Increasing Employee Engagement and Satisfaction by a Certain Percentage: Setting measurable targets helps track progress and success.
• Improving Customer Satisfaction Ratings: Engaged employees contribute to better customer experiences.
• Reducing Employee Turnover Rates: Aiming to lower turnover rates can help retain valuable talent.
• Increasing Productivity and Efficiency: Setting productivity goals can drive performance improvements.
• Enhancing Brand Reputation and Advocacy: Encouraging employees to become brand advocates can boost the company’s image.

Internal marketing programs should be designed with specific goals and objectives to ensure their effectiveness.

By setting these goals, companies can create a focused and effective internal marketing strategy that drives positive outcomes.

Cultivate a good marketing team

To ensure effective internal marketing, businesses must start by cultivating a great internal marketing team. A capable marketing team understands that internal marketing is just as important to a company's success as external marketing and for this reason must be able to build up a business and its culture both inside and outside the organization. Developing an overall internal marketing strategy requires a designated owner responsible for its execution.

Educate employees

Helping employees understand the history and mission of their company is an essential component of an organization's internal marketing strategy. Onboarding is the perfect time to introduce new employees to their new company and its corporate culture. Soliciting feedback from employees during onboarding helps improve internal marketing strategies.

This might include presentations, videos, or graphics explaining how the company has grown and evolved since its inception. By helping employees to feel like they are part of something bigger, they may be more likely to participate in brand advocacy.

Create interactive content

Studies have found that interactive web technologies have been key to creating engaging platforms for employee communication, learning, and development. This will help build a strong internal brand identity that can power employee advocacy to your target audience of potential customers. Interactive content should be accessible to everyone on every device and easy to use, while also being creative and innovative to keep employees engaged.

Use intranet software

An organization's intranet facilitates communication, collaboration, and information sharing. An efficient intranet works as a marketing target as it will also drive and grow company culture and educate employees on new initiatives.

Depending on the organization, intranets can manifest as a website, internal communications platform, collection of collaboration tools, knowledge-sharing platform, or even a social network.

Employee recognition programs

An effective employee recognition program can be the central pillar of an internal marketing campaign. Employee recognition programs deliver vital data, nurture trust, reinforce company values, drive engagement, and promote excellence. Not only this but recognising employees lets them know their hard work is seen and appreciated by their employers.

Using the right HR software platform, you can design and manage suitable employee recognition programs.

Align Employees with Company’s Mission

Aligning employees with the company’s mission is a cornerstone of a successful internal marketing strategy. When employees understand and are invested in the company’s mission, they are more likely to be engaged, motivated, and productive. Internal marketing efforts should focus on clearly communicating the company’s vision, values, and goals through various channels such as internal communications, training programs, and team-building activities.

Effective internal marketing strategies help employees see how their individual roles contribute to the company’s overall mission. This sense of purpose and meaning can significantly boost employee engagement, motivation, and job satisfaction. Moreover, when employees are aligned with the company’s mission, they are more likely to become brand advocates, promoting the company’s products and services to customers and potential customers. By fostering a deep connection between employees and the company’s mission, businesses can create a more cohesive and driven workforce.

Creating a Positive Employee Experience

Creating a positive employee experience is essential for any internal marketing plan. When employees have a positive experience working for the company, they are more likely to be engaged, motivated, and productive. Internal marketing efforts can focus on enhancing the employee experience by providing opportunities for growth and development, recognizing and rewarding contributions, and fostering a positive work culture.

A positive employee experience not only boosts engagement but also leads to increased employee retention and reduced turnover rates. When employees feel valued and supported, they are more likely to stay with the company long-term. Additionally, a positive employee experience can lead to higher customer satisfaction, as happy employees are more likely to provide excellent customer service. By prioritizing the employee experience, companies can create a more loyal and productive workforce.

Implement Effective Internal Communication Systems

A large part of internal marketing is good communication systems. Regularly sharing important information and updates across all levels of staff contributes towards encouraging employees to share the overall vision, goals, and values of the company. Successful internal marketing relies heavily on effective communication systems to keep employees informed and engaged.

Additional strategies to consider:

• Allow top performers to provide feedback on internal marketing and HR issues
• Use newsletters or in-house radio programs to spread information and reinforce organizational culture
• Create performance-based incentives
• Position the brand as part of a narrative that employees can relate to and participate in
• Use technological tools like blogs, message boards, and wikis to spread information
• Tailor internal marketing messages to each department
• Highlight success like new contracts awarded or sales targets met
• Encourage collaboration between departments
• Delivering internal marketing messages through multiple channels ensures reach and effectiveness

Effective Communication Channels

When it comes to implementing internal marketing into an organization, there are a number of simple but effective examples to try. Common avenues and channels for internal marketing include:

• Social media profiles
• Company websites
• Job listings and promotion opportunities
• Company benefits and perks
• Work-life balance initiatives
• Training and development opportunities
• Internal communications, including emails, instant messages, and phone calls
• Workshops
• Employee brainstorming sessions
• Employee Recognition Programs
• Company meetings
• Employee performance reviews
• Feedback opportunities
• Company news, updates, milestones, and achievements
• Face-to-Face Interactions and Town Hall Meetings:

By using these communication channels, companies can ensure that their internal marketing efforts are effective in engaging and motivating employees, ultimately leading to improved business outcomes.

The Role of Leadership in Internal Marketing

Leadership plays a pivotal role in the success of internal marketing strategies. Leaders should be actively involved in the development and implementation of these strategies, ensuring they align with the company’s overall mission and goals. Effective leaders communicate the company’s vision, values, and goals to employees, providing them with a sense of purpose and meaning.

Leaders can also empower employees to promote the company’s brand by providing the necessary tools and resources to become brand advocates. Recognizing and rewarding employees for their contributions fosters a positive work culture and increases employee engagement and motivation. By taking an active role in internal marketing, leaders can drive the company’s mission forward and create a more engaged and motivated workforce.

Measuring and Evaluating Internal Marketing

Measuring and evaluating internal marketing efforts is crucial to ensure their effectiveness. Key metrics to consider include employee engagement, employee retention, customer satisfaction, and brand awareness. Effective internal marketing strategies should also incorporate Employee Net Promoter Score (eNPS) to gauge the impact of internal marketing efforts.

These metrics can help identify areas for improvement and guide adjustments to internal marketing strategies. Additionally, understanding the return on investment (ROI) of internal marketing efforts allows companies to allocate resources and budget more effectively. By regularly measuring and evaluating internal marketing efforts, companies can ensure they are driving positive outcomes and continuously improving their internal marketing initiatives.

Key Takeaway

Internal marketing is how a business communicates information including product updates, personnel changes, the company's mission and values, and more, with its employees. Just like external marketing, internal marketing needs to be professional and engaging. Internal marketing campaigns are often led by a company's human resources department.

When carried out effectively, internal marketing strategies will improve the employee experience, boost company loyalty and increase employee engagement, ultimately leading to a better-performing business. Employees that believe in the brand are more likely to be more motivated to communicate their enthusiasm to the clients and to become brand ambassadors on social media.