/ 16 October 2015

Managing the challenge of change

Dave Macready of Old Mutual
Dave Macready of Old Mutual

Branding is about perceptions, associations and opinions; it is the sum total of an individual’s experience of an organisation, whether it be through the views of other customers, portrayal by the media, interactions with the company’s employees, the sharing of industry opinions, or engaging with the brand itself on a variety of platforms. 

From influencing buying decisions to having an effect on the recruitment of top talent, brand perception is a powerful tool. It is therefore imperative that companies manage, maintain and continually assess their brands, as reputation impacts every element of business. 

The financial services landscape in South Africa is constantly changing and evolving. International competitors are moving into the local market and local companies are finding new channels to distribute fresh products and services. In short, the changes in South African society are changing the business environment.

At Old Mutual we recognise that the success of our brand depends on us being attuned to the dynamics that shape our world, and every aspect of society. Founded in 1845 by a group of visionary South African investors, Old Mutual has weathered the many vagaries of the world markets and grown to be one of South Africa’s most relevant, recognisable and reliable financial services brands.

In South Africa, we are now more integrated into world financial markets, which means that as investors we are exposed to the volatility of global markets. Most significant is that consumers are determined to invest in solutions that offer outstanding value.

Old Mutual has evolved significantly over the years to meet these challenges. In the past, the group was seen predominantly as a life assurance brand, while today it is more often seen as an investment company. Sustainable brands are built at the intersection of relevance and innovation. Great brands win on both of these fronts.

In the case of large organisations, brand associations often extend to regions, or even continents. For example, in its emerging African markets, Old Mutual’s reputation management contributes on a socioeconomic level to supporting the overall reputation of the countries and markets we invest and operate in. This is critical in terms of investor and market confidence, as was evident during the recent market slump.

In order to manage their reputations effectively, companies need to be aware of the multiple touch points that their stakeholders use to interact with the brand. With the rise in social media, opinions about companies are now increasingly being aired in the online space. 

At Old Mutual we continue to see an increase in the number of business enquiries, service requests, complaints and referrals via online media. Consequently, our communications and customer care teams receive ongoing training on social media and other digital channels to continuously improve their ability to respond to customers’ queries quickly and appropriately.

These platforms offer an excellent opportunity for businesses to enhance their brands, and, paradoxically, implement their long-term reputation strategy in a short-term, immediate world.  

A positive brand perception is a measure of trust, which is built not only by delivering professional, world-class products and services, but also through acting in ways that demonstrate empathy and resonate with your audiences. Nowhere is this more critical than in our own financial services industry, which is built on trust. While it takes years to build a trusted brand, we all know that it can be lost in an instant.

These days this winning over of trust is increasingly taking place in the digital arena. Once this reputation is earned, it needs to be managed, maintained and assessed — carefully and continually.

The burgeoning of online communication also means that companies now have immediate access to public sentiment about their organisation. While in-depth surveys and focus groups may still have their place, the internet has provided a direct gateway to stakeholders, without filters and delays. This real-time connection enables companies to continually examine and assess the nuances of brand perception, and thus provides a space for meaningful dialogue to take place. More than ever before, businesses today have to engage with their stakeholders including customers, employees, industry leaders, academics and unions, and consider their points of view at the most strategic level of decision making.

In the era of the global village, geography ceases to be relevant; the political, social or economic affairs of one region are no longer limited to a country’s physical boundaries. What this means in terms of reputation management is that businesses have to ensure that their brand messaging remains consistent across all channels and regions, and they have to be aware of the possible implications that the events in one corner of the globe could have for another. 

Nurturing your brand’s reputation in the digital age is both an art and a science. While the chemistry can, to a large extent, be predicted and controlled through tried-and-tested formulas, there will always be an element of the unknown, an aspect that requires experience and an insightful understanding of your audience to manage. 

For Old Mutual, this stakeholder-centric approach to managing our brand and reputation is an important pillar in our business philosophy and strategy, as we consistently build on the solid reputation of being our customers’ most trusted financial partner, which we have sustained for 170 years.

Dave Macready is the chief executive of Old Mutual South Africa