Posts Tagged ‘Business/Finance’
Reebok’s reputation as an earnest athletic brand that could make people jump and run faster was all intact until the company introduced its toning shoe ‘EasyTone and RunTone’. The product claimed to burn that extra fat and get you that Jessica Alba kind booty. Well this was enough to tempt people to buy and fine tune their shape. Read the rest of this entry »
If something comes down your chimney on christmas eve, it could just be somebody’s else bank statement courtesy of Santander Bank who have admitted sending 35,000 customers to the wrong addresses following what they termed a printing glitch. “Glitch” is the banking term for a monumental customer service cock-up from the bank with nearly the worst customer service reputation in the UK. Santander is the Spanish bank that seems (“seems”) to have avoided the Spanish property meltdown and has gone on a bit of a buying spree since 2007 buying the UK bank/building society Abbey. Since then it has managed to obliterate the bank’s customer service reputation regularly polling at the bottom of customer service surveys.
You really wouldn’t want to be a reputation manager at Santander. The bank has failed to deliver on many of its promises and the brand has picked up little traction since the massive rebrand over the past few years. Of course, bank reputations have not really recovered since 2008 and for most customers, one bank is equally as bad as another. However banks try to position themselves as a “friend for life”, most customers know that the friendship does not extend beyond the first second of an overdraft and they know that all banks are exactly the same!
Santander are likely to be fined heavily by the regulators at the FSA for their latest failing, but it would change the core challenge for banks to make themselves more central to their customers’ lives in a positive way.
No single company has had its reputation shredded quite like Bank of America over the past few years except for maybe BP, or ‘British Petroleum’ as President Obama likes to call them. Every day another story comes out over their processes around foreclosures and mortgages. Now Nevada and Arizona have filed suit against Bank of America saying it has been deceiving homeowners trying to avoid foreclosure. Read the rest of this entry »
The lawsuit filed against Ernst & Young for their auditing of Lehman Brothers and their acceptance of the now notorious “Repo 105″ manoeuvre that Lehman used to hide their leverage in their quarterly filing and thereby mislead investors as to the true state of their finances has revealed that some of E&Y’s auditors were concerned and brought up the issue of “reputational risk”.
Reputational risk is growing more fashionable as a concept among strategy thinkers but rarely has much traction among the board or within the C-Suite where a fight between quick profit and long term reputation is usually a round one knockout to profit. Reputational risk is a function that considers the risk of reputation damage as one of the criteria in decision making. The question goes: “what will people think about us or our products if we make this decision, it might be profitable but long term will we lose out as our reputation suffers for being dishonest, etc.” Read the rest of this entry »