INTRODUCTION
According to PwC, the need for effective communication is often overlooked or underestimated in the flurry of activity surrounding a deal. Executing a strong and clear communication strategy is critical to successful integration.
Companies who keep customer experience as a top priority
during an M&A and adopt the customer’s view of the merger as they make important integration decisions, will not only keep current customers but also set the company up for future success.
- Communicate early and often. Frequent communications reduce uncertainty and maintain a trusting relationship with customers. Involve your customers (e.g. email updates) as it makes them less likely to jump ship. For example, in the banking industry, a study by J.D. Power and Associates states that when a customer finds out about the merger from a source other than their financial institution, they are twice as likely to switch banks compared with customers who reported receiving merger or acquisition communications directly from their bank.
- Train employees. Send the approved talking points to employees on both sides. This way they know how to speak to customers appropriately and achieve consistent messaging. Another tactic could be to prepare written FAQs for customer-facing employees.
- Be accessible. Have both sets of staff available to customers to answer questions in all formats, such as online (e.g. Twitter), in-person (e.g. town hall meeting) and phone (e.g. hotline).
- Prepare for leaks. In case your customers find out about the merger or acquisition before you can make the announcement, be honest and transparent. Give all the information (that you legally can) by using the approved talking points, just as you would after the formal announcement is made.