When brand and business collide
Barry Ritholtz (who should be in every brand builder’s blogroll, if not speed dial) lays out a classic case of brand vs. business in the financial services industry.
In the case that Barry cites, two portfolio managers help their clients avoid huge losses in 2008 by moving most assets into cash:
Overall, the clients do very well. In a year where the markets are practically cut in half, their clients lose about 10%. The investors are ecstatic, and while the two brokers annual compensation was schmeissed — they went from over $3 million gross to under $1 million — they have happy, referral making clients to rebuild their business upon. It’s a short term income hit that should generate gains over the long term. And, they got there by doing the right thing.
For this, their employer (rhymes with Schmerrill) cuts their compensation and stuffs them in the penalty box.
Creating brand value is the best way to create customers. A company that penalizes brand value has major problems, often right down to its core.
