Reputation Management

By Lee Rossini

A good reputation is worth its weight in gold in the financial services sector. A business runs the real risk of losing dissatisfied clients due to a poor service experience or worse, due to inappropriate advice which has resulted in the client losing their hard-earned money. Unhappy clients quickly and effectively share their story with others. As the news spread about the bad service or poor advice, the likelihood of the business’ reputation being damaged beyond repair becomes more and more real.

Reputational risk should be consciously and properly managed. This means that everyone in the business should be made aware of the potentially disastrous consequences of not upholding the reputation of the business. Set aside time to discuss with staff why it is so important to act in a responsible, professional manner at all times and especially during interactions with clients, members of the public, product suppliers and the media.

A good reputation is one of the best ways of retaining and attracting new clients. It forms an important part of the brand identity of a financial advice business. A good reputation makes a business more competitive and adds to its value. The following guidelines have been adapted from a table drawn up by Eric Parker, a South African business consultant, to highlight the building blocks necessary to build a good reputation.

Client relations:

Go above and beyond the minimum standards required by the legislation.
Live the words that are used to describe ethical behavior: honesty, integrity, best interests of clients, respect, fairness, due skill etc.
Take every opportunity to share useful knowledge and information with your clients about financial matters.
Practice full disclosure regarding costs, fees and possible consequences of decisions made.
Work hard at truly understanding client concerns, needs and circumstances.
Ensure that service delivery happens as promised to clients.
Be willing to give advice and support even if it does not result in a sale.

Staff relations:

Adhere to the letter and spirit of the labour law in the treatment of staff.
Select staff based on ability, cultural fit and shared values.
Inform staff of their rights and obligations during the induction process and reinforce these in the staff manual.
Offer fair pay and pleasant working conditions.
If possible, offer deserving staff members the opportunity to progress or study further.
Encourage staff to grow as individuals by listening and taking their suggestions and ideas seriously.
Making training available that is designed to enable staff to not only meet the requirements of their job, but also meets their aspirations and builds their abilities.
Tolerate mistakes if there is evidence that a person has learned from their mistakes.

Product supplier relations:

Demonstrate a willingness to work with product suppliers to ensure good service to clients.
Make an effort to thoroughly understand the products, systems and timelines of product suppliers.
Ensure that the products offered by a product supplier are appropriate to the needs of your target market.

Regulator:

Move away from a tick-box approach to compliance.
Timeously meet the legislative requirements.
Maintain cordial relations with the regulator.
Supply information as required or when requested.

General public relations:

Encourage open and forthright responses to queries or questions.
Display community spirit and a willingness to be a good corporate citizen.
Be willing to share knowledge and information on financial matters with members of the public.

As with so many things, the reputation of a business starts with the example set by the owners and senior managers. A good reputation is the outcome of ethical, honest and professional behavior of all staff members, from the top down. It is demonstrated in how staff treat each other and the way the best interests of clients are always at the center of the business. It takes time and effort to build and maintain a good reputation; it can be destroyed in a matter of minutes, leaving your business and personal goals and dreams in tatters.

Reference:

Eric Parker’s Road Map to Business Success (Rollerbird Press 2004).