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Even if your company has reached a brand and reputation pinnacle, this cautionary tale of Australia Post versus Apple shows why it can never, ever afford to rest on its reputational laurels.
Last week, BlueChippers attended the AMR Corporate Reputation Breakfast, where host Oliver Freedman from AMR led with a quote from Abraham Lincoln: “Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing”.
If your company isn’t already convinced of the importance of a strong corporate reputation, consider this. Sixty per cent of Australians check labels to find out who is behind the product they are buying and 79% would not buy that product if they dislike that company. Clearly, your company’s ‘shadow’ matters as much, maybe even more, than it’s ‘tree’.
So how can you ensure that the shadow matches the tree, that your company’s reputation matches its character? One thing is certain: there’s no room for complacency or to rest on your reputational laurels. You will need to be able to adapt, to change and move along with changing times, perceptions, technology. In other words, you need to be sensitive to the myriad the factors that lead to changed customer needs.
By way of illustration, consider this case of the reputations of Apple vs. Australia Post. A no-brainer, right?
For many years, Apple has been perceived as the apotheosis of change (for the better) and adaptability. The brand is synonymous with innovation. However, according to this year’s Corporate Reputation Index of companies in Australia, its reputation is slipping. It has dropped from first to fifth place in the rankings. How to explain the Apple’s fall from the top of the reputation tree? And why is Australia Post, one of our oldest companies and not long ago in danger of being wiped from the planet by advancing technology in the top five?
As a company that has historically differentiated itself through true invention, Apple seems to have recently shifted its focus to tout product over lifestyle. Take for example the ‘Designed by Apple in California’ tagline that appears in recent advertising campaigns. The fact is, Apple is no longer the only player in the market designing beautiful, functional and user-friendly smart phones, PCs and tablets. Images of people using technology in various aspects of everyday life are no longer revolutionary and Apple can no longer rest on its laurels as the challenger of the status quo in technology. Consumers are catching on to other brands with similar offerings, and Apple seems to have lost some of its clout as a market leader.
Compare this to the Australia Post dinosaur that theoretically should be extinct and yet is not. Though it may seem counterintuitive, Australia Post is a prime example of a brand that has continually adapted to serve its customers while still maintaining a consistent brand character – and is rated as the second most reputable company in Australia.
When Australia Post was founded in 1809, snail mail was the only way for Australians to communicate. That need has changed fundamentally as email and other electronic communication has led to a dramatic decrease in the demand for posting letters. Australia Post’s response has been to evolve with changing times and customers, offering new services such as 24/7 parcel lockers and a Digital Mailbox. It is not just a mail delivery service. Rather, according to Ahmed Fahour, Aussie Post’s MD and CEO, it is an “organisation that helps Australians communicate with each other, whether that be through mail, parcels, electronic communications or whatever new methods of communication will be developed”.
Adapting to market and societal changes while still offering a consistent brand message is key to building and maintaining a respected corporate reputation or ‘shadow’. Apple is an example of an organisation that needs to adapt in a rapidly changing market, the way Australia Post has for over 200 years. Maintaining a healthy ‘tree’ is the best way to ensure the resulting ‘shadow’ is one with which you want to be associated.
