Article n°7 - 4 min

How To Protect Your Brand In A Financial Crisis

Establish trust

Strengthen client loyalty through engagement

Look inward first

Building a brand is one thing but building one that is resilient to market downturns is another.

Market downturns accompany economic uncertainty and a shift in investor sentiment. This uncertainty can tarnish a brand's reputation, as stakeholders become wary of the potential for losses and especially if don’t get the assurance and stability they need.

Transparency and communication are key

Effective communication is critical during periods of market volatility. Investors need clear and concise information about their investments, market conditions, and the firm's strategies. Providing detailed explanations of how portfolio allocations are being adjusted to mitigate risks can alleviate investor concerns.

Transparent and straightforward communication can alleviate investor anxiety. Additionally, regular updates on market outlooks, performance metrics, and strategic initiatives can help investors stay informed, feel more secure and reinforce their trust that your firm is committed to your clients goals.

Proactive Crisis Management

Asset managers must be prepared to address crises proactively, with a well-defined communication plan. This involves identifying potential risks, developing contingency plans, and establishing clear communication protocols.

For example, during a sudden market downturn, a proactive approach might include hosting webinars, distributing timely market analysis reports, and offering personalized consultations to address investor concerns. By demonstrating readiness and responsiveness, asset managers can reinforce their commitment to protecting investor interests.

Regular and Meaningful Interactions

Consistent engagement requires regular and meaningful interactions with clients. This involves more than just periodic performance reports; it means providing valuable insights, educational content, and opportunities for dialogue. For instance, hosting quarterly webinars on market trends, publishing thought leadership articles, and offering interactive workshops can keep clients informed and engaged. These interactions should be designed to provide tangible value and address clients' specific concerns and interests.

Feedback and Continuous Improvement

Finally, consistent engagement involves actively seeking client feedback and using it to drive continuous improvement. Asset managers should regularly solicit feedback through surveys and direct conversations. For example, asking clients about their satisfaction with the firm's communication and overall experience can provide valuable insights for improvement. By acting on this feedback, firms can demonstrate their commitment to enhancing the client experience and building long-term loyalty.

The link between culture and reputation

Reputation can be damaged when external audiences get mixed and contradictory messaging from the team. Consistency is always key in branding.

Leadership should have a strong understanding of the firm’s strategy and vision, but that knowledge should trickle down throughout the firm. If the brand vision and what the brand represents aren’t clear inside the firm, it won’t be clearly communicated to the outside world.

This could be mitigated by educating employees and vendors about the firm’s brand, what is it set out to achieve and to be crystal clear about it.

Consistency messaging builds reputation and goodwill that can help firms weather crises.

The role of employees to managing brand risk

A firm’s reputation and ability to reassure investors and bring stability originate from its employees and their voices.

They are generally the first line of defense. They should be the brand’s ambassadors and trained to protect, preserve and enhance the firm’s reputation.

Their ability to shape the firm’s perception in the marketplace just shows how important training and communication programs are to safeguard the firm’s integrity. If the story they communicate isn’t consistent and in line with the brand’s values and purpose, it will create confusion and affect reputation.

Turn these insights into reality.