The most important thing for advisers to think about as we head into a new year is their reputation and image. Not having a communication strategy in place as part of your larger marketing effort can be devastating to your business and long-term growth.
A number of surveys and reports show that the financial crisis has had a resounding effect on the way investors view the industry. Between Madoff, market losses and a critical media, it's no wonder that 13% of high-net-worth investors said they'll be looking for a new adviser in the coming year, up from 8% last year, according to the 2009 Phoenix Wealth Survey. These investors cited “advisers' not being proactive in maintaining contact” as one of their key reasons for looking elsewhere.
Why miss out on a chance to give clients a reason to stick with you in 2010 and also recommend you to friends seeking new counsel?
Having a reputation management strategy in place acknowledges a basic fact: Clients, employees and advocates need to feel incredibly good about an organization in order to want to keep a long-term relationship with it. Firms with a strong reputation attract more high-quality clients and employees, have better experiences negotiating with vendors and obtain more positive media coverage that serves as a third-party endorsement of their value proposition. All these benefits directly contribute to your bottom line.
Go digital. Technology is changing daily, and as a result, it is critical that you tailor your communication efforts with a digital strategy in order to keep up with the pace. People are now receiving as much, if not morej, information through hand-held devices, online news and social-networking sites, as they are from newspapers and television. Advisers who use digital and social media will find that they have greater control over their reputation and a wider reach for their message.
Think long term. Building a good reputation takes time — another reason to start now. Remember, this is about developing an asset of real value that gives you a competitive advantage.
Developing a standout image requires you to offer and effectively communicate key differentiators that create trust and credibility.
These can come only from a firm's internal effort over time to cultivate best practices, service offerings and company vision that other firms are hard-pressed to duplicate.
Talk to your constituents. Most business owners agree that their reputations hold value, but few have any idea what their reputations are worth. How well do employees perceive you and the firm? Do your vendors view you as a valuable business partner? What is the brand image that clients have about you? Reach out to your most trusted clients, vendors and strategic partners to learn their perceptions about your firm. If no trusted constituents come to mind, that's a clue about where you stand.
Define your image. Based on these conversations, you'll have fresh insights into your reputation. Some clients might mention positive differentiators you haven't thought of. Mixed responses can help you focus on where to sharpen your message. All this helps you define your reputation and map out goals and strategies. This is about knowing who you are (your desired reputation) and aligning it with the way constituents perceive you (your public reputation). Your goals are your game plan for changing or building on your reputation, and protecting and maintaining it.
Become a trusted media resource. What others say about your company is a lot more powerful that what you say yourself. This gets to the heart of having a solid reputation. I can tell you all day long that I am someone you should trust, but if my clients tell you I'm trustworthy, it's a lot more convincing. This is why getting positive media coverage can be so transformative.
Many advisers turn to public relations as a part of their reputation management strategy — it's the tool that allows you to maintain and communicate your reputation to constituents. It gives you, and no one else, control over the public image you've worked hard to build.
Your reputation adds real value to your company's ultimate worth. In many ways, it's worth more than your actual book value or value of hard assets.
Without an impenetrable reputation, your business can come under attack or get left behind. An unexpected lawsuit, a series of new industry scandals or a personal breach with a few clients can affect your reputation, no matter how great your performance is.
Jennifer Connelly is president of JCPR Inc., a full-service public-relations and strategic-communications firm specializing in the financial services industry.
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