3 Stakeholder Engagement Mistakes to Avoid

1. 3 Stakeholder Engagement Mistakes to Avoid Connecting with your target audience is essential, but it isn’t easy, especially if strategic communications isn’t your area of expertise. Our team of strategic consultants and stakeholder engagement experts has helped countless organizations overcome this challenge. In fact, we have the advantage of 30 years of experience, which makes a big difference. Stakeholder engagement has been at the center of our agency’s work since 1995, be it conductingcommunity outreach campaignsfor regulated industry companies or helping startups with their market entry. We have seen it all and we have found that many companies face the same obstacles, regardless of whether it’s B2B or B2C, a small business or a Fortune 500 company. Why Stakeholder Engagement Matters Stakeholder engagement is essential for growth. For instance, research by Gallup found that, compared to the average customer, those who are engaged represent a23% premiumin wallet share, profitability and revenue. That said, it is important to remember that while customers are a vital part of your target audience, they are not the only ones, which brings us to our first mistake.

2. Mistake #1: Not Knowing Your Target Audience(s) Who are your key stakeholders? Are you sure that’s all of them? As a strategic communications agency based in San Francisco, we help clients identify and engage key stakeholders. Often, these include: •Investors •Banks or creditors •Board members •Media •Suppliers •Regulators •Partners •Communities •Policymakers •Distributors •Competitors While that isn’t meant to be an exhaustive list, you may notice that it’s missing what is arguably the most important stakeholder group and perhaps the most frequently overlooked: Employees. Mistake #2: Forgetting About Internal Stakeholders Employee engagementin the U.S. reached a 10-year low in 2024, falling to just 31% from a high of 36% in 2020. This is extremely problematic, given therole they playin a company’s success: •Business units that are highly engaged are 21%more profitablethan those that are not and have 18%more sales. •83% of companies that invested in stakeholder management planssuccessfully completed projectson time compared to approximately 32% of those that didn’t. •Organizations that effectively engage with their employees experience 64%fewer safety incidentsand 81%less absenteeismthan those that don’t. Failing to prioritizeeffective internal communicationpractices has an impact, and it isn’t a positive one. Having a strategy that keeps employees informed, involves them in the decision- making process and recognizes their contributions will help you avoid the pitfalls of disengagement. Mistake #3: Not Considering the Competition “Why would I want to engage with my competitors?” It’s a fair question and the short answer is that your competitors are more than just rivals. They aim to shape industry trends, influence

3. customer expectations and drive innovation, just as you do. Ignoring them is a costly mistake as it leads to strategic blind spots. If the competition is capitalizing on a shift in consumer behavior—whether it’s a new technology, pricing model or service approach—you risk falling behind before you even realize a change is happening. Likewise, if you don’t understand how others in your industry differentiate themselves, it’s harder for you to stand out and you may leave potential customers unsure of why they should choose youover the alternatives. The same can be said for prospective or current employees. If the competition offers better compensation, benefits orwork culture, they can attract top talent away from your company, putting you at a disadvantage. Of course, how you engage with competitors is much different than that of other stakeholder groups. Rather than trying to grab their attention and win their favor, you need to monitor their actions and understand their strengths and weaknesses. This will enable you to identify gaps your business can fill and opportunities to differentiate. Get Expert Guidance The three missteps we’ve covered are far from the only challenges businesses face and our team is here to help you avoid all of them. As a leading strategic communications agency, ARTÉMIA offers comprehensive stakeholder engagement services. If you’re ready to build lasting connections, schedule afree strategic consultationwith our experts.