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Growing Aflac’s Reputation and Measuring Progress

Catherine Blades Senior Vice President Corporate Communications @CHBlades

#measure16

@CHBlades #measure16

Gen. Martin E. Dempsey

@CHBlades #measure16

@CHBlades #measure16

Corporate Communications Functions at Aflac

PR, Crisis and Editorial Media Relations

Employee Communications

Broker and Career Channel Communications

Integrated Communications

Multimedia and Events

Collaboration Government Relations Marketing Legal Investor Relations Compliance

@CHBlades #measure16

Basic Metrics

PR, Crisis and Editorial Media Relations

Employee Communications

Broker and Career Channel Communications

Year Over Year Increase in Tier One Media Impressions

Infuse New Technology To Enhance Employee Engagement

Leaders’ Notes App Target: 20% Actual: 50%

Optimize Mobile Usage

Target: 5% Actual: 83%

Target: 20% Actual: 40%

@CHBlades #measure16

Basic Metrics

Integrated Communications

Thought Leadership

Aflac Workforces Report

2014: 2015:

1,634,602,649 Impressions

1,469,308,085

Multimedia and Events

World Class Corporate Theatre

Customer Satisfaction Target: Actual:

85% 90%

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Return on Reputation and Why It Matters

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RepTrak Methodology RepTrak dimensions are the rational explanation of emotional connections Track perceptions about your company’s ability to deliver on 7 key dimensions and 23 deep dive attributes of reputation.

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Reputation Drivers & Scores 2015 U.S. RepTrak Drivers: Insurance Industry

October – December average

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RepTrak Methodology Track your reputation with confidence using RepTrak Connect the emotional bond stakeholders have with your company with rational behaviors.

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What is the return on reputation? • A strong link between reputation and stock price - Since the 2008

crisis, those companies with a stronger reputation have performed significantly better (almost 2X the return) than the overall market.

• Better stock price recovery after a crisis – All firms take a similar hit (8%) on average, but higher reputation forms bounce back faster and go higher afterward (RI Study)

• Benefit of the doubt in a crisis - 54% would give reputable companies the benefit of the doubt in a crisis compared to only 20% for lower reputation companies. (RT100)

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What is the return on reputation? • More recommendation - recommendation goes up by 6.5 percent for

each 5-point reputation RepTrak® score improvement (RT 100)

• More buying - propensity to buy goes up over 5% for each 5 point RepTrak® score improvement (Multiple RT studies)

• Attracting the best talent - a good company reputation is a top 5 driver for people when they consider which company they would like to work for. A higher reputation results in a significant increase in willingness to work for a firm (Analysis of Universum and Best Place to work findings)

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What is the return on reputation? •Engage and retain talent

–Engaged employees •Rate the firms’ reputation higher (5+ points) •Are more willing to believe in and support the company vision •Are more willing to refer potential employees and clients •Are more willing to stay at the firm •Score higher/perform better in annual reviews

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There is a strong link between reputation and stock price (U.S.)

The chart on this slide demonstrates that the RepTrak Portfolio has outperformed the S&P500 Index since 2006. It has also done so by an increasingly wide margin since the financial crisis of 2008. An investment of $100 in the RepTrak Portfolio would be worth $250 in 2013, whereas investing in the S&P would net approximately half of that, at ~$140.

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RepTrak Methodology How corporate reputation links to stakeholder support Companies with excellent or strong reputations get significantly more support from the public.

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Does CSR Matter? Companies with excellent or strong CSR reputations have significantly higher stakeholder support. CSR reputation has an even larger impact on support than overall reputation.

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Reputation Tracker: Aflac’s 2015 Reputation Continues to Trend Upward

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Reputation Tracker: Aflac vs. Benchmarks

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RepTrak Pulse Links to Supportive Behavior

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Things You Can Do Tomorrow

1. Survey Stakeholders – Use what is of value to them to determine success for you

2. Source Data – Combine that with your survey results to get a baseline and identify your end game 3. Modeling – Build or purchase it – develop your strategy

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Things You Can Do Tomorrow

4. Deconstruct the Model– Determine where you can get the most lift – that’s your tactics 5. Execute Flawlessly – Focusing on efforts that will get you to the success metric most quickly 6. Collect New Data and Compare

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Q&A

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Thank You