Building the corporate brand

ESOMAR Conference on Financial Services London (UK), February 2005 BUILDING THE CORPORATE BRAND Beyond individual loyalties Oliver Loch Patricia Kidd This paper deals with the specific research methods and tools used to help UBS develop a global corporate brand with credible appeal to high net worth customers who think of he individual advisor as the “brand.” The Wirthlin Values approach is used to develop an emotionally-based global positioning that links the relevant elements of the advisor and the firm to motivating personal emotions shared by investors around the globe © Copyright by ESOMAR® −The World Association of Research Professionals Oliver Loch, Patricia Kidd INTRODUCTION Financial services firms serving the needs of very high asset investors (those with $500,000 or more in investable assets, excluding real estate and 401k) face an unusual challenge The sheer volume of assets being invested creates an extremely strong reliance on the financial advisor High asset investors view their relationship with their trusted advisor as primary, and the financial services firm itself is relegated to a secondary role This creates in interesting branding situation It’s not advisable to brand financial advisors The best advisors are like major league football players – their loyalty is typically limited and they might move to the firm that promises them better financial rewards However, in order to create the types of associations necessary to have a clearly defined brand image, it is important to define the relevance of the firm in a clear and credible way In 2000, UBS set out to define and begin to proactively shape its brand The approach used in this case is instructive for marketers faced with defining a strong corporate brand, when advisors play a central role in delivering the brand Who is UBS? As context, before getting into the details of the case, it is helpful to provide some background on UBS UBS is the leading bank in Switzerland, and is also one of the world’s leading financial firms – the sixth largest bank globally by market capitalization, with over 66,000 staff worldwide – serving the needs of high net worth individuals and leading corporations In the early 1990s, the two Swiss banks that form the current UBS, Swiss Bank Corporation (SBC) and Union Bank of Switzerland (UBS) were commercial banks operating mainly out of Switzerland They shared a similar vision: to become a world leader in wealth management while remaining a leading player in commercial and retail banking in Switzerland As the chart shows, the firm has deep historical roots in Switzerland, dating back to the 1800’s - - and a deep institutional stability The 1998 merger of Swiss Bank Corporation and Union Bank of Switzerland brought together these two leading Swiss institutions creating the world leader in private banking and one of the leading players in investment banking The only gap in the portfolio was filled through the merger with the U.S investment services firm, PaineWebber, in 2000, making UBS a truly global player in wealth management © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand Figure GRAPHIC HISTORY OF UBS While awareness of UBS is virtually universal in Switzerland, it is a new name in other parts of the world and in many countries the UBS name has replaced a more familiar brand like PaineWebber or S.G Warburg In this paper, we will be focusing on the dynamics of relationship the high asset consumer investor has with the advisor and the firm IMPORTANCE OF BRANDING IN FINANCIAL SERVICES Brands are most influential when customers lack the knowledge to make informed product choices, or in commoditized categories such as financial services They take on even greater significance when the purchase decision is of great importance to the customer and the customer is faced with a plethora of complex choices Fierce competition ensures that there is little sustainable product differentiation in product features or price However, the products and services offered revolve around something that is very, very important to customers: their money and financial security As a result, customers can rarely base their purchase decision on purely rational factors, such as product features or pricing, but are forced to turn to a more subjective appraisal based on their affinity with and trust in a certain brand, as expressed through the individual advisor © Copyright by ESOMAR® −The World Association of Research Professionals Oliver Loch, Patricia Kidd THE HIGH ASSET INVESTOR: RELEVANT CHARACTERISTICS The individual investors on whom UBS focuses tend to be moderately involved in their investing, with most relying on an average of five advisors to provide them with investing advice More often than not, they have earned rather than inherited their wealth and they not think of themselves as “wealthy.” While they enjoy the fruits of their labor, they also worry about what impact market dynamics might have on their wealth They mix the optimism characteristic of high achieving people with the caution resulting from a history of investment experiences both bad and good With the exception of some high growth emerging markets like China, which has a disproportionate number of wealthy young entrepreneurs, the high asset investors tend to be older It has taken them time to accumulate their wealth While most realize they need some personal investing knowledge and sophistication, they not want “a second job” in the monitoring of the market and their own investments They have to strike a balance between trusting and relying on the advisor and spreading risk through both their own knowledge and reliance on multiple advisors Figure MULTIPLE FIRM USAGE – REASONS In choosing advisors, high asset investors look for strong recommendations from people with whom they have a trusted personal relationship The decision to try an advisor is not necessarily a logical, rational process It may come as a © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand result of talking with Uncle Joe at a family outing and hearing about the smart investments his advisor has helped him make It is often more episodic than planned It often starts with a relatively small investment that may be increased over time as the advisor proves himself Importantly, few if any of these high asset investors start with the financial services brand when choosing advisors Figure THE ADVISOR VS THE FIRM (USA) © Copyright by ESOMAR® −The World Association of Research Professionals Oliver Loch, Patricia Kidd In Europe and in Asia, the firm itself takes on somewhat greater importance in the choice of financial advisory services As figure shows, there is a need to more evenly balance the attention to the firm and to the advisor Figure THE ADVISOR VS THE FIRM: ADVISOR (EUROPE) © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand CHARACTERISTICS OF THE TRUSTED ADVISOR Advisors who work most successfully with high asset investors combine extensive financial knowledge with the resources and attention of a good concierge They know their clients intimately and they proactively address their clients’ needs The personal trust they engender relies on a delicate balance They must combine their knowledge of the client with their own extensive knowledge of financial products and services, to help the client decide which investments make the most sense That trust can be jeopardized, however, if the client feels the advisor is using that knowledge to “sell” or “push” products or services Many financial advisors to high asset investors are very independent and have a proprietary sense of ownership of the relationships they create with clients They are protective of those relationships and in many instances resistant to pressure regarding the specifics of how they deal with these clients Clearly, since they are in many ways the deliverer of the financial services firm brand, this presents challenges Those working to execute brand strategy must enlist the support of the financial advisors in communicating the brand, while respecting the advisor’s need for control and independence HOW BRAND RESEARCH TOOK THIS DYNAMIC INTO CONSIDERATION Defining the relative and relevant importance of the advisor and the firm was one of many objectives around which the global brand research was designed Related issues involved: Large variations in the awareness of UBS and strength of the brand identity outside of Switzerland Variations in the role of the firm in different geographies (e.g in Japan, due to waves of bank failures, the size and stability of the firm takes on a much greater priority than in other geographies) Differences in the advisory model – the brokerage model common in the United States is becoming more accepted in other parts of the world, as stock market investment becomes more accepted However, the nature of investments and consequent advisory model differ in different geographies Without going into great detail on each of these issues, the goal of the research was to determine commonalities that would allow the creation and communication of a truly global brand © Copyright by ESOMAR® −The World Association of Research Professionals Oliver Loch, Patricia Kidd Research was conducted in three phases: Qualitative using Wirthlin’s proprietary Values approach to uncover dominant motivations of consumer and business investors in choosing financial advisory services “Linkage research” to quantify the strength of motivational pathways uncovered in the qualitative Validation research to quantify the appeal, importance, uniqueness and credibility of each brand element developed as a result of the prior research phases This was conducted not only among global external audiences, but among internal stakeholders as well, to be certain the brand elements that were developed resonated with UBS’s employees The qualitative research, backed by the quantitative validation, showed that the advisor and the firm played different, but supporting roles in helping the client feel a sense of security and peace of mind Figure CONSUMER NEEDS © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand The client’s sense of feeling connected to the advisor sourced to feelings of confidence in the advisor which meant they have a good relationship with the advisor, feel they are able to trust the advisor and the advisor is top quality, in the sense of really knowing the business and how to access for the client those products and services that are most appropriate for the client’s very specific needs Figure CONFIDENCE IN ADVISOR / FIRM ORIENTATION The attribute mentioned most frequently for the firm is that it is a stable company with a good reputation This leads to a sense of confidence in the company and further enhances the sense of connectedness that contribute to the client’s comfort level and sense of security Now, the “nodes” we show on the map are composed of a variety of elements The nodes are created as the result of a factor analysis of many elements that people told us are important to their choice of a firm, and it is the nuance of these nodes on the strategic map that contribute to the development of tactics, for communications, for the creation of internal training programs, for the creation of marketing support materials, and so forth For instance, how we know what “top quality” means when it’s applied to the advisor? © Copyright by ESOMAR® −The World Association of Research Professionals Oliver Loch, Patricia Kidd 10 Figure FINANCIAL SERVICES LEXICON The words and phrases underlying the factor analysis are contained in a lexicon that provides the underlying structure for each of the nodes on the map and gives texture and detail that is applied to the creation of advertising, marketing and internal education programs If we know that “good relationship with advisor” is composed of elements like: » » » » Working in my best interest, Understands my needs, Not pushy, Long term relationship with advisor, Then it becomes possible to envision how the advisor can be portrayed in marketing communications Additionally, it provides the basis for very concrete feedback to the advisors themselves on what their clients are looking for in the relationship © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand From the perspective of the financial services firm itself, it is critical to understand that “good reputation” and “stability” are critical to creating investor confidence (particularly as the brand is establishing itself in geographies where it is less well known) Elements of those attributes that can be translated into communications include: » » » » » Well-known company, name recognition No scandals/negative publicity Established company (track record) Global company Financial stability Further research indicated that some of these elements are particularly important in the earlier stages of brand development (such as establishing awareness of the firm’s global reach and long term history) but require less focus as the brand becomes established Once consumer research was completed and the core brand elements were determined, these elements were tested internally, with UBS employees, to be certain they were credible, desirable to employees as well, and whether employees felt they were currently achievable or aspirational The data from employee research was used to develop internal tactics APPLYING THE FINDINGS TO THE COMMUNICATION OF THE BRAND The research findings were collapsed into a core strategy that combined: » » » The focus and attention of the advisor on understanding clients’ needs and proactively seeking solutions to meet those needs, The global capabilities of a strong, stable firm Tonality that communicates relentless dedication to the success of the individual client UBS recognized that to be successful, a consistent brand must be reflected in all advertising and marketing materials, but that alone was not sufficient The UBS brand must be communicated in its face-to-face delivery to clients The chart below summarizes the holistic way in which UBS communicated its brand: © Copyright by ESOMAR® −The World Association of Research Professionals 11 12 Oliver Loch, Patricia Kidd Figure APPLYING THE BRAND STRATEGY Figure below provides an example of the print advertising which you may have seen in publications like the Economist, Financial Times, Forbes and the New Yorker Notice how both the intimate relationship and the size and scale of the firm are communicated in this execution © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand Figure APPLYING THE BRAND STRATEGY (PRINT) Here are some shots from one of the television commercials from the campaign running globally, with the same focus on both the scope of the firm and the advisor relationship © Copyright by ESOMAR® −The World Association of Research Professionals 13 14 Oliver Loch, Patricia Kidd Setting: UBS Financial Advisor meeting the client at a branch office The camera crosses the room, showing various client situations, and zeroes in on an intense Financial Advisor/client discussion but captures the little moments of what appears to be a real relationship Voice-over: "At UBS, we offer our clients serious financial resources 100 years of experience The expertise of one of the world's largest wealth management firms And, of course, the most serious resource of all a relationship that's like a relationship Wealth management at UBS From wealth preservation to lending and investments You and us UBS." Figure 10 APPLYING THE BRAND STRATEGY (TV) © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand PUTTING THE RESEARCH TO WORK IN THE BROADER ORGANIZATIONAL CONTEXT One of the biggest mistakes a company can make is to promise something to its customers and not deliver on it UBS understood the importance of supporting promises made in advertising with the experience of prospects, clients and employees in interacting with UBS This is a challenge for a bank such as UBS with almost 70,000 employees worldwide who stem from different organizations such as PaineWebber or SG Warburg Additionally, UBS serves many different customer segments, across many different channels in many different regions The way the brand is perceived through the online banking site should be consistent with the inbranch experience The customer experience with an investment-banking advisor should be consistent whether it happens in New York, Hong Kong, Zurich or Paris Client facing employees (such as financial advisors and asset managers) and client influencing employees (such as HR, IR and PR) were segmented and appropriate training was developed for each segment Since the single brand launch in June 2003, specific brand training has been conducted with approximately 500 of these employees representing 15 countries These trainings, as with all internal communications regarding the brand, were strongly based in the research This was seen as key to driving buy-in As a part of ongoing internal communication initiatives, UBS also wished to share key learning from brand tracking with client-facing employees, so they would have feedback on how the brand was being received by target investors A brand scorecard was developed and is distributed bi-annually (after every global brand research round) This helps to: » » » Raise awareness about the brand, and reinforce key brand objectives, Summarize key statistics about the brand and facilitate communication of the Brand Equity Monitor results within Business Groups, Illustrate current state and progress made in bringing investors closer to the brand © Copyright by ESOMAR® −The World Association of Research Professionals 15 16 Oliver Loch, Patricia Kidd Figure 11 INCREASES IN KEY BRAND METRICS © Copyright by ESOMAR® −The World Association of Research Professionals Building the corporate brand HOW HAS THIS STRATEGY WORKED? PROOF OF PERFORMANCE Results show significant improvements in advertising and brand awareness, particularly in the U.S – where the largest portion of UBS’ advertising dollars has been spent Ad awareness, brand awareness and familiarity are all up Since the announcement of the single brand strategy, UBS’s share price has significantly outperformed both the Swiss Market Index and average banks share price As a final proof of the success of the brand strategy, UBS entered Business Week’s top 100 global brands list at 45th in 2004, with a brand value of $6.5m, as one of only five financial services entries Its success was credited to its “consolidated brand and its catchy ‘You and Us’ campaign.” SUMMARY: KEY LEARNINGS The most important learning from this case is that when the brand is delivered primarily through a trusted advisor, it is important to understand in specific detail what each party – the advisor and the firm – brings to the relationship with the client By fully understanding the nature of the relationship and the relative equities each can contribute, it becomes possible to develop a brand beyond individual loyalties REFERENCES Aaker, D (2000) Brand Leadership New York Davis, S., Dunn, M (2002) Building the brand-driven business, San Francisco Finan, J (2002) Branding – the key issue in financial services marketing Bank Marketing International Harris, G (2001) The Branding of Banks: How Financial Services Firms are Marketing Themselves Financial Times Lynn, V (2000) The brand that binds Bank Marketing Marketing Leadership Council (2002) Returns on Branded Experience Investments Olson, J., Reynolds, T (2001) Understanding Consumer Decision Making: The MeansEnd Approach to Marketing and Advertising Strategy © Copyright by ESOMAR® −The World Association of Research Professionals 17 Oliver Loch, Patricia Kidd 18 THE AUTHORS Oliver Loch is Global Head of Brand Research, UBS, Switzerland Patricia Kidd is Vice President, Marketing Communications Research, HarrisInteractive, United States © Copyright by ESOMAR® −The World Association of Research Professionals [...]... in this execution © Copyright by ESOMAR® The World Association of Research Professionals Building the corporate brand Figure 9 APPLYING THE BRAND STRATEGY (PRINT) Here are some shots from one of the television commercials from the campaign running globally, with the same focus on both the scope of the firm and the advisor relationship © Copyright by ESOMAR® The World Association of Research Professionals... client-facing employees, so they would have feedback on how the brand was being received by target investors A brand scorecard was developed and is distributed bi-annually (after every global brand research round) This helps to: » » » Raise awareness about the brand, and reinforce key brand objectives, Summarize key statistics about the brand and facilitate communication of the Brand Equity Monitor results... and the firm – brings to the relationship with the client By fully understanding the nature of the relationship and the relative equities each can contribute, it becomes possible to develop a brand beyond individual loyalties REFERENCES Aaker, D (2000) Brand Leadership New York Davis, S., Dunn, M (2002) Building the brand- driven business, San Francisco Finan, J (2002) Branding – the key issue in financial... employees, to be certain they were credible, desirable to employees as well, and whether employees felt they were currently achievable or aspirational The data from employee research was used to develop internal tactics APPLYING THE FINDINGS TO THE COMMUNICATION OF THE BRAND The research findings were collapsed into a core strategy that combined: » » » The focus and attention of the advisor on understanding... to the brand © Copyright by ESOMAR® The World Association of Research Professionals 15 16 Oliver Loch, Patricia Kidd Figure 11 INCREASES IN KEY BRAND METRICS © Copyright by ESOMAR® The World Association of Research Professionals Building the corporate brand HOW HAS THIS STRATEGY WORKED? PROOF OF PERFORMANCE Results show significant improvements in advertising and brand awareness, particularly in the. .. course, the most serious resource of all a relationship that's like a relationship Wealth management at UBS From wealth preservation to lending and investments You and us UBS." Figure 10 APPLYING THE BRAND STRATEGY (TV) © Copyright by ESOMAR® The World Association of Research Professionals Building the corporate brand PUTTING THE RESEARCH TO WORK IN THE BROADER ORGANIZATIONAL CONTEXT One of the biggest... communicated its brand: © Copyright by ESOMAR® The World Association of Research Professionals 11 12 Oliver Loch, Patricia Kidd Figure 8 APPLYING THE BRAND STRATEGY Figure 9 below provides an example of the print advertising which you may have seen in publications like the Economist, Financial Times, Forbes and the New Yorker Notice how both the intimate relationship and the size and scale of the firm are... U.S – where the largest portion of UBS’ advertising dollars has been spent Ad awareness, brand awareness and familiarity are all up Since the announcement of the single brand strategy, UBS’s share price has significantly outperformed both the Swiss Market Index and average banks share price As a final proof of the success of the brand strategy, UBS entered Business Week’s top 100 global brands list... company Financial stability Further research indicated that some of these elements are particularly important in the earlier stages of brand development (such as establishing awareness of the firm’s global reach and long term history) but require less focus as the brand becomes established Once consumer research was completed and the core brand elements were determined, these elements were tested internally,... Since the single brand launch in June 2003, specific brand training has been conducted with approximately 500 of these employees representing 15 countries These trainings, as with all internal communications regarding the brand, were strongly based in the research This was seen as key to driving buy-in As a part of ongoing internal communication initiatives, UBS also wished to share key learning from brand ... provide them with investing advice More often than not, they have earned rather than inherited their wealth and they not think of themselves as “wealthy.” While they enjoy the fruits of their labor,... concierge They know their clients intimately and they proactively address their clients’ needs The personal trust they engender relies on a delicate balance They must combine their knowledge of the. .. on what their clients are looking for in the relationship © Copyright by ESOMAR® The World Association of Research Professionals Building the corporate brand From the perspective of the financial