With the popularity of the Internet constantly rising, a strong online presence is a must-have for the majority of businesses. Competent use of digital channels in communication with consumers helps brands acquire and retain customers. No doubt firms have become more digitally mature, yet according to research CEOs are most of the time absent on digital channels. Just have a look at facts and figures: a mere 7 percent of the sample of FTSE 350 firms researched have a Personal Touch leader.

The results of the survey seem surprising, given the fact that ‘Personal Touch’ or digitally connected leadership approach really pays off. According to the study conducted by Sitecore, a leading web content management and customer experience management software company, retailers in the FTSE 350 who are digitally connecting with their customers are actively seizing the opportunity to converse with them in two-way communication. By doing so, they are boosting commercial performance of their businesses. Research reveals that CEOs using the ‘Personal Touch’ approach are more likely to benefit from an increase in online traffic with half of them having around 150 authors writing about them on the internet, compared with 33% of corporate companies.

Tesco top performer in Two-Way communication

There are three types of connection investigated in the survey run by Sitecore; One-Way, Two-Way, and Corporate. One-way does not reach beyond a simple act of broadcasting information by the company such as an update on new offers, service or other less-personal connections. Two-Way is all about a dialogue and personal replies with the customer. Example: HTC and its micro-blogging on Twitter. Finally, corporate communication is a domain of a department within the company, which is responsible for PR and/or marketing activities.
In the top eight performing businesses engaged in the two-way communication with consumers are Tesco, Burberry Group and Carnival Plc. Leading the way is Tesco’s CEO, who is also named as a ‘Super Personal Touch’ leader, as he is personally active on more than one digital communication platform.

Personal Touch firms do better

There is no denying that Personal Touch really works. The performance of Personal Touch firms since 2009/10 has exceeded all other firms in the FTSE 350. This is demonstrated by annual growth rates in turnover and compound annual growth rate (CAGR) in turnover and profit. Additionally, Personal Touch firms recorded a CAGR of 27% from 2009 to 2012 and a rate of 30% for 2010 to 2012. This compares to a rate of just 9% from 2009 to 2012, and 13% from 2010 to 2012 by the next best performing group: corporate two-way firms, compounding the commercial advantages of the Personal Touch leadership style.

A high number of the surveyed firms operate in the retail sector. It proves that the industry is leading the way when it comes to this form of consumer engagement. Modern digital marketing systems can help with the delivery of the Personal Touch across all available digital channels such as the web, mobile, social media and email. Every time a customer ‘touches’ the brand they should enjoy an experience that is as unique as they are. Every such interaction someone has with your business enhances their experience. CEOs who have grasped the concept of Personal Touch leadership style and are ready to adopt it, will help their businesses maintain a strong and recognizable profile.

When does it get too personal? 

One of the risks of personal, two-way communication with customers is that on a bad day one individual can tarnish the reputation of the entire company. Tesco provides an example of a rather unfortunate exchange between a customer and the firm. A testy customer posted a complaint “Carrying shopping hurts so much”, to which the company responded with an Internet meme: “Do you even lift bro?”. Hilarious to some, it could sound a bit disrespectful, if not plainly offensive, to others. However, if handled correctly, such connections with consumers can help deal successfully with serious issues which could potentially threaten the firm's good image. Here is another example from the giant Tesco: the firm was the first retailer to find horsemeat being used in their beef products. Quick on the uptake, the firm's social team mitigated the issue with a witty comment: “It's sleepy time so we're off to hit the hay! See you at 8am for more #TescoTweets”

Sources: http://www.freshbusinessthinking.com; http://www.retail-digital.com; http://www.marketingtechnews.net; http://www.mynewsdesk.com
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