It is formulated to support and define where the new company is going and communicate how the formation of this new company fits the overall vision. Even in business, communicating with customers effectively can help you gain their loyalty - leading to repeat purchases, positive word-of-mouth, and referrals.. On the flipside though, failure to communicate well can create dissatisfaction, frustration, and a decrease in sales. Below are three ways to avoid losing customers during an acquisition or merger. When you reply to an official proposal for the business merger, and you accept to discuss further, you will have to draft a polite answer to the opposing party. As with any major change effort, the approach needs … The news spread quickly to industry regulators, but spread even more quickly to T-Mobile and Sprint customers. Once your customers are aware that a merger or acquisition will take place, they are sure to have questions for you. If customers feel uncertain about direction of the merger, they will be very sensitive to any dips of communication and service. For Clarion and the communications team the delivery of the merger was the beginning of a process, not the end. But when is the right time to tell employees about a pending merger? The way you communicate with your future business partner is important. Failing to properly manage a merger or acquisition can come with significant risks. We have compiled lists from our M&A integration consulting projects of the most common questions asked by: ( Read More: Good Merger Communication Strategies Make or Break Banking Deals ) 1. Will leadership be changed or kept intact? Letters to customers are letters written by businesses to people or organizations who buy goods and services from these businesses. even so, social loafing also has an effect on the people today that comprise the team. Using the old sender name gives customers a chance to associate both Storenvy Printing and Threadbird Printing as one and the same company prior to sending under the new Threadbird banner. By anticipating their concerns in advance, you’ll be better prepared to address them. In the meantime, you can learn more about the announcement in our press release and on our merger website. Clarity about motives and intent, as well as timing the release of information during a merger, requires strategic information management. A merger process for creating a Shared Vision that can be owned at each level of the organization and readily expanded into an integrated strategy. Some more reasons to enter into a merger or acquisition include: Your M&A messaging strategy will … An integration is always a time of uncertainty. Be ready with an explanation of how the deal will benefit them and the changes, if any, that they can expect. Without frequent communication, rumors can develop and speculation can occur. If you own a business, there are many times you may find it necessary to write to your customers. It will give them a sense of ownership and establish support. Communicate long-term value of merger: The merger is safe and the value of the combined company will be enhanced, giving us the scale to compete: Press releases, website, direct mail: Customers at bank being acquired: Service, pricing: Retain customer relationships Keep in mind that whatever you tell employees will leak to the press, vendors, suppliers and customers. Communicate. The communication role needs to begin during the preliminary stages to set the scene. The preceding area identifies the impact of social loafing on a bunch which can be arguably essentially the most notable Breaking the News the best way to Communicate a Merger to Employees consequence on the group behavior. Equip internal teams with communication best practices These letters can be addressed to specific customers or to all customers, depending on the issue. Some may do it in order to get rid of competitors, while others create value for their businesses by gaining new customers, boosting business productivity, and expanding into new markets, which are all possible through this strategy. Keeping customers fi rst in merger integration stable with no defections following the merger, and its churn rate actually dropped. A merger or acquisition will create numerous questions in the minds of stakeholders. And make sure you regularly communicate your appreciation to employees for all their efforts during a merger; when they feel valued and engaged, they’re more likely to go the extra mile for customers. 4. An acquisition is when one company is purchased by another. At the outset, employee concerns are going to be top of mind for them. The more your employees, partners, customers, and shareholders know about the nature of the deal, the more likely they are to get behind your decision. The merger or acquisition is sometimes prompted by a desire to improve CX, ... “On the surface, M&As can elicit a feeling of uncertainty for both employees and customers… Culture, Comms & Cocktails is internal comms served straight up. Good communication is essential to successful mergers and acquisitions. The audience for this video is primarily employees but also customers and vendors. It’s especially important to focus on people and culture during times of transition. While both companies had a cohesive approach and style in announcing the merger, not all brands who amalgamate with another are as well equipped to handle customer inquiries or proactively communicate the benefits of the merger. As part of an AT Kearney global survey, […] Post-Merger Integration Plan. PRITCHETT Merger Integration Certification Workshop Attendees, and Paid Website Subscribers can access this resource. Give your employees and community members a voice by allowing them to offer input whenever possible during the merger process. How to Communicate with Customers . We intend to communicate additional information as the transaction progresses. In fact, poor communication can lead to the failure of the transaction, making it vital that your HR and executive teams work together to effectively communicate all impending changes with staff in an easy-to-digest form. Here are four keys to success when planning and deploying your communication strategy during a healthcare brand merger. After a merger takes place the two companies require a face of unity to allay the fears of the workforce and show that the company will be stronger in its new incarnation. Mergers and acquisitions go through three broad phases. There are plenty of reasons for a company to decide to merge with or acquire another company. Design merger conversion communications as if you were onboarding a new customer. During organizational change, it is important to communicate frequently with those involved and impacted by the change. Start at home. Communicate early on the anticipated level of integration and assimilation and what that will mean for employees. Is this a merger, acquisition, joint venture or divestiture? Corporate reorganizations, mergers and acquisitions affect employees, customers, suppliers and vendors. Communication tools such as community press releases, letters, emails, employee intranet announcements, brochures for customers, and FAQs should be used. Too often the communication starts too late and doesn’t deal sufficiently with the post-merger integration issues. Be sure to communicate with employees, collect feedback to take targeted action for retention, and provide ongoing support. Rather than leaving everyone to wonder how the reorganization will affect their relationship with the company, it’s wise to develop communication strategies that address employee concerns as well as questions from customers, suppliers and vendors. Sometimes it’s referred to as a takeover. They won’t much care about impact on customers immediately; they’ll care about changes to their jobs, benefits, pay, taxes, etc. Before the merger takes place, make sure that you: Find Your Narrative When a merger or acquisition takes place, everyone in your organisation will want to know what’s happening, and why. Competitors will certainly seize any opportunity to poach customers and top-performing employees. Which systems, policies and processes will change? In the past six years, AccentCare has doubled in size organically, and through a lot of acquisitions, going from about 12,000 employees to 25,000 employees. Keep the organization and customers focused on the benefits and drives the realization of these Communicate, communicate, communicate. Embed consideration of the cus-tomer experience as an integral part of merger planning. 2. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, tools, and templates on MergerIntegration.com. organization will look once the merger is complete will: Communicate the strategic rationale for the merger and the value to be realized. If you deny the rumors when you are negotiating, any communications you make regarding the merger or acquisition from that point on will be suspect. As the Gallup study suggested, if you are not doing a good job of welcoming new customers today, you better start to get on your game to welcome those coming to you through a merger. A merger is when two or more companies combine to become one new company (and legal entity). Communication plays a key role in every merger or acquisition. Be sure to keep your message consistent and communicate it clearly and effectively to employees, customers and investors. Gaining a deeper understanding of existing brand perceptions and the nature of the brand experience of both brands through research before any merger is complete will help guide brand strategy decisions. In this episode, we have Lindsay Williams, not only a friend of mine, but also, more importantly, the Director of Digital Communications at AccentCare.. Communicate quickly to customers the rationale and new value proposition of the merger. They are often “equal” in the agreement. Here are his five simple rules to help any communicator be more effective when it’s time to put on the merger comms hat. And remember, you don’t need to wait until things feel settled to collect feedback post-merger … Who should make the announcement, and what communication channels should they us The mere mention of the term "merger and acquisition" (M&A) can send messages of misinformation or half-truths. Until the closing, GoTo and LogMeIn remain entirely separate entities, and will continue to provide support for their respective customers. Probably the most important strategy to prevent customer attrition is clear and effective communication. Best-selling author Simon Sinek said it best, “Customers will never love a company until the employees love it first.” Recognize And Reward Your Loyal Customers During Periods Of Change Airlines have certainly had to communicate changes like this on a periodic basis, in … Preannouncement Communications. The earlier you communicate, the better. Effective communication is the key to building and nurturing any relationship - be it personal or professional. 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