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Why reputation matters to the bottom line
A lesson from the Boston Red Sox
by Lois Kelly
How do companies prosper even in tough times? They rely on their strong reputations, just like the Boston Red Sox.
The Red Sox? An organization with new ownership, overpaid talent and facilities that can no longer handle the organization’s needs?
Yes, that Red Sox. The very one that almost doubled prices in a softening economy and still set an attendance record. No baseball team in America has more expensive seats on average than the Red Sox. Yet while ticket demand for other sports teams wavers, the Sox last year filled 96 percent of its stadium seats.
The team continues to thrive when other ball clubs struggle because it has a great reputation. Not necessarily the best talent or the most consistent performance, but a great overall reputation.
People clearly understand what the team represents and how it differs from other ball clubs, and other forms of sports and entertainment. And that’s no accident. Since its start 100 years ago, Red Sox management has carefully nurtured a reputation for being the team for diehard fans who love the game of baseball, who believe that the underdog always has a chance, who cherish their own very personal “Fenway experiences.”
Most companies, however, pay too little attention to nurturing their reputations. This is true for both business-to-business and consumer product companies.
One common way companies hurt their reputations – particular in difficult economies -- is by cutting prices. This hurts a reputation more than it helps. Price cutting tells your loyal customers that it’s wrong to care so much about your company; it’s not worth that much.
Red Sox ticket prices have risen more than seven times faster than New Englanders’ wages, but it would be wrong for the team to ever discount its tickets. Red Sox fans care deeply about their team: it’s part of their community, part of their summer magic, part of their souls.
Work harder at creating a solid corporate reputation and your company will prosper where competitors struggle – just like the Red Sox.
Lois Kelly is president of Meaning Maker, a marketing and business communication-consulting firm. For a free copy of “Marketing Shortcuts: 10 Inexpensive & Overlooked Ways to Accelerate Results,” contact Kelly by email at kelly@meaningmaker.com, or call her at (401) 333-5464.
[PRINTER FRIENDLY VERSION]
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