Don't put your good name in jeopardy

29 March 2010

The demise of claims management firm Cartel Client Review has once again brought into focus the issue of reputation.

Every company depends on having a good reputation and if this is damaged life becomes a lot tougher.

It doesn’t matter if a business is a global giant such as Toyota or a far smaller claims management firm, reputation is its most important asset. And, as both Toyota and Cartel know only too well, reputations are hard won and easily lost.

The same holds true for brokers. In fact, reputation is everything for a business that has no product other that the recommendations it gives to clients.

Reputations need to be carefully nurtured and closely protected so they help rather than hinder business development activities.

This brings me back to the Cartel situation. Brokers depend not only on the quality of advice and service they provide clients but also on the quality of service provided by firms they recommend their clients to.

Unfortunately, if things go wrong as they did with Cartel, aggrieved clients are usually unwilling to differentiate between the broker and the business that supplied sub-standard service. All parties are deemed culpable.

My recommendation to brokers is simple - if you’re unsure about the reputation of a firm you’re recommending to your clients, don’t recommend it. There are plenty more fish in the sea.

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