Financial Service Relations: Where Do We Go From Here?
With the stock market roiling around these days
, issues still remain about the nations financial services organizations. In addition, the financial reform bill continues to wend its way through Congress and how it all turns out remains a question.
Where do things stand from a credibility standpoint? Are we ready to trust our financial institutions again? Heartening to those of us in public relations, particularly those of us engaged in financial services relations, is the fact that we understand how to build and sustain beneficial and trustful relationships. Now, we just have to convince financial service providers that it is the right thing to do
Many financial firms have pared back their budgets for financial services relations as a result of economic conditions. They couldnt have picked a worse time. Now is precisely the time such organizations need to increase their financial services relations budgets to 1) restore credibility; and 2) acquire customers. The second point is critical There are probably many customers who have become disaffected with their existing firms and are looking for new relationships as old loyalties have been dissipated by the financial scandals. An increase in budgets for financial services relations may be worthwhile given the opportunity to attract some of these shoppers.
Studies have demonstrated over the years that companies who increase their marketing budgets during times of economic stress emerge even stronger when conditions improve. Most likely the opposite is also true in that those companies who decrease their budgets have more ground to make up and suffer a loss of standing within the eyes of their customers.
We believe that firms are coming to grips with the fact that they need to do something to stay in the game. We are beginning to see financial services organizations increase their commitments to financial services relations.