TL; DR: There are a number of mistakes companies make when it comes to stakeholder engagement, including overlooking key stakeholder groups or failing to communicate with them effectively, leading to confusion, misalignment and missed opportunities.
Connecting with your target audiences is essential, but it isn’t easy, especially if it isn’t your area of expertise. Our team has helped countless organizations overcome this challenge; however, we also have the advantage of 30 years of experience, which makes a big difference.
Stakeholder engagement has been at the heart of everything we do since 1995, be it conducting community outreach campaigns for utility companies or helping startups enter new markets. We’ve seen it all, and we’ve 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 Does Stakeholder Engagement Matter?
Fundamentally, stakeholder engagement drives growth. For instance, research by Gallup found that, compared to the average customer, those who are engaged represent a 23% premium in 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.
Mistake #1: Not Knowing Your Target Audiences
Who are your key stakeholders? Are you sure that’s all of them? Common target audiences include:
- Investors
- Banks or creditors
- Board members
- 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 engagement in 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 the role they play in a company’s success:
- Business units that are highly engaged are 21% more profitable than those that are not and have 18% more sales.
- 83% of companies that invested in stakeholder management plans successfully completed projects on time compared to approximately 32% of those that didn’t.
- Organizations that effectively engage with their employees experience 64% fewer safety incidents and 81% less absenteeism than those that don’t.
Failing to prioritize effective internal communication practices 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 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 may leave potential customers unsure of why they should choose you over the alternatives.
The same can be said for prospective or current employees. If the competition offers better compensation, benefits or work 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.
Partner with the Stakeholder Engagement Experts
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. At ARTÉMIA Communications, we know what it takes to build lasting connections. If you’re ready to ensure the success of your stakeholder engagement efforts.
Contact us to schedule a free consultation.
Frequently Asked Questions
Why is stakeholder engagement important?
Because no initiative happens in a vacuum. Stakeholders shape how your company is perceived, supported and scaled — and overlooking them can stall progress or create preventable friction.
Who counts as a stakeholder?
Beyond customers and investors, stakeholders include employees, regulators, board members, suppliers, media, strategic partners, policymakers and even competitors. Each group brings different expectations and influences.
What happens when stakeholder engagement is inconsistent?
You risk misalignment, low morale, regulatory pushback, missed deadlines and limited traction. Internal teams lose focus, and external audiences miss the message.
Why is employee engagement treated as part of stakeholder strategy?
Because your internal team drives performance. Low engagement leads to high turnover, missed goals and cultural drift — all of which directly impact outcomes.
How does ARTÉMIA help with stakeholder engagement?
We identify your full audience, uncover blind spots, and build strategic frameworks that keep all stakeholder groups informed, aligned and invested — internally and externally.
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