Joan Jett may not have given a damn about her bad reputation, but maybe we should.

According to the annual Harris Poll 2014 RQ (Reputation Quotient) report, the power of a business's good reputation has a huge impact on the company bottom line—and it's driven by a customer-centric focus.

The names topping the list of the 15th annual RQ study shouldn't be a surprise to anyone. Harris interviewed more than 14,000 consumers for the results, so this isn't a ranking of obscure brands.

To cut to the chase, the top 10 are:

  1. Amazon.com – RQ 83.87
  2. The Coca-Cola Co. – RQ 82.68
  3. Apple – RQ 81.76
  4. The Walt Disney Co. – RQ 81.50
  5. Honda Motor Co. – RQ 80.87
  6. Costco – RQ 80.75
  7. Samsung – RQ 80.75
  8. Whole Foods Market – RQ 80.45
  9. Microsoft – RQ 80.11
  10. Sony – RQ 79.77

And while it's also no surprise that no insurance companies made the top 10, No. 11 is USAA, with an RQ of 79.23. Only two other insurers made the list; Allstate at No. 33 (RQ 72.80), and AIG at No. 54 (RQ 58.26).

Scores 80 and above are considered "excellent," 75 to 79 "very good," 70 to 74 "good," 65 to-69 "fair," 55 to 64 "poor," 50 to 54 "very poor," and below 50, "critical." (Sucks to be you, AIG—although in 2013 they were dead last on the list.)

So what makes for a high RQ? Harris breaks it down into 20 attributes folded into six dimensions: social responsibility, emotional appeal, products and services, workplace environment, financial performance, and vision and leadership. And while high-quality products and services and outperforming competitors are in the mix, some of these "softer" attributes include supporting good causes, environmental and community responsibility, rewarding employees fairly, and feeling good about, admiring and respecting, and trusting a company.  

The good news for insurance is, we're on the upswing. Financial services' RQ showed a "glimmer of hope," with four of the top five RQ improvements coming from financial services: AIG, Goldman Sachs, Wells Fargo and Citigroup. "Banking, insurance and broader financial services industries all still have negative reputations but all show positive gains, with insurance leading the way," according to the executive summary. "As compared to two years ago, nearly double the number of respondents now see these industries as part of the solution to our economic issues."

The insurance industry had an overall 36% positive rating in 2014, compared with 33% in 2013 and 29% in 2012. Again, not great, but at least it's not financial services (32%), banking (31%), tobacco or government (sharing the bottom of the list at 13%).

This seems to reflect the overall trend of consumers viewing Corporate America more positively—at least compared with 2008 and the depths of the recession. Only 20% say overall corporate reputations have improved, but this is up 25% from 2013 and double 2012.

So how can we as an industry improve our RQ? Additional findings may provide some clues:

  • More than three-quarters of the general public are concerned about the amount of private information companies capture about their customers, and less than half trust them to act responsibly with it.
  • When broken down into "seekers" and "bystanders," seekers rule: in 2014, 56% of respondents proactively try to learn more about the companies they hear about or do business with, compared with 44% that do not.
  • Six in 10 decided not to do business with a company based on something they learned about the company's conduct.
  • Technology continues to have the most positive "reputation halo," while financial services industries remain polarizing.
  • Only Coca-Cola appears in all six dimensions: social responsibility (80.37 RQ), emotional appeal (81.07 RQ), products and services (82.41 RQ), vision and leadership (84.42 RQ), financial performance (85.22 RQ), and workplace environment (82.09 RQ).

I'll grant you that insurance isn't fizzy sugar water with a reputation stoked by cute animated polar bears and Santa Claus. Nor does it sell addictive mobile devices, mouse ears, industrial-sized packages of toilet paper, or overpriced organic quinoa. On the flip side, however, insurance hasn't been linked to childhood obesity or diabetes, Chinese sweatshops, questionable treatment of its workforce, or Johnny Depp as Tonto in "The Lone Ranger."

But once again, the onus is on us to tout all of the good our industry does, starting with putting people's lives back together after a catastrophe (sure beats a Coke and a smile). Or charitable efforts like the IICF, Disabled Veterans Insurance Careers (DVIC), or the thousands of everyday hometown charities that agents and brokers take part in. Or the great opportunities just waiting for young people in an industry where hiring is poised to boom. 

And that beats a Coke and a smile any day.

 

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