BBC exposé blows reputational roof off Connells and Purplebricks
Estate agency giants Connells and Purplebricks face reputation hell in wake of BBC Panorama investigation. Crisis management specialists Clearly PR explain the PR implications.
A BBC Panorama investigation will tonight (Monday 14th) lift the lid on the unscrupulous practices of two of the country’s leading estate agencies. Purplebricks and Connell’s face a PR nightmare that has the potential to seriously damage and wound both businesses.
What’s the story?
Connells staff allegedly prioritised buyers who agreed to use the company’s in-house services (mortgages, conveyancing) over potentially better offers from other buyers. This practice, known as conditional selling, is against the Code of Practice for Residential Estate Agents.
Purplebricks allegedly overvalued properties to win clients, then pressured sellers to reduce prices later; thereby, earning commission on successful reductions.
For both parties, the reputation risk is extremely high. There is a breach of trust, blatant dishonesty, and manipulation whereby both Connells and Purplebricks are accused of putting profit over client interests. Not to mention violating the rules and regulations that guide the industry.
Then there is the public backlash to their actions. The BBC investigation will show that these are not isolated incidences; rather, they are systemic.
Indeed, Purplebricks has faced criticism in the past and the whole investigation came about in the first place because “more than 20 independent financial advisers (IFAs) and mortgage advisers from across England and Wales who had concerns about how” Connells operates.
What next?
Read the values of most if not all businesses and I’ll wager at least 95% will include ‘Honesty’ and ‘Trustworthiness’ in there. As does Connells. They describe themselves as being a “trusted local name.”
Allegations of wrongdoing are always hard to respond to. Yet, when there is evidence to support them the challenge to regain the platform upon which there is the opportunity to be heard and be on the receiving end of some positive PR once again is made more difficult.
But it can be done.
Rarely is there an occasion when a business exposed for improper conduct finds itself unable to get back up and restore some if not all of the reputation that has been lost. It takes time and a darn load of hard work when ever the most robust crisis communications strategy can be tested to its limits.
Each of Purplebricks and Connells have a busy few months ahead of them. They will each need to commission an independent audit into these (and potentially other) issues. Then they need to implement the recommendations and communicate this to the media.
Staff training and current incentive schemes will likely need to be revised to ensure they are aligned with customer expectations and compliant with the industry’s code of conduct. That may not be enough. I’d argue they will need to go above and beyond industry standards.
Oh, and have either of the businesses apologised? That’s step one.
You can read more on this via the BBC website: https://www.bbc.co.uk/news/articles/cvg81l57x53o
