Surviving a Public Relations Scandal by Increasing Customer Satisfaction

Image: New York Stock Exchange

Corporate Challenge: Scandal threatens a “too big to fail” bank’s reputation.
 
Ironbound Strategy: Powerful brands are able to minimize reputational risks by continuously generating value for their employees, customers, and society. In the wake of a scandal, top management needs to ensure and communicate that positive value is being created for all stakeholders.
 
Ironbound Action: A recent J.D. Power report shows that Wells Fargo improved their customer satisfaction rating following the massive fake accounts revelation in the fall of 2016. A key finding from this report was digital banking continues to rise.  By creating value for both digital and in branch customer demographics, Wells Fargo increased its customer satisfaction status despite the scandal. Powerful brands are better able to survive reputational events because they balance growth with holistic value creation.