Every organisation is highly dependent on their clientele’s view of them. If the client base sees the organisation in bad light it becomes problematic to the varying processes of the business. This is where the element of reputation management comes into play.
As part of a communications strategy it is vital to note the key contributions reputation management presents to your brand’s image.
Reputation: the beliefs or opinions that are generally held about someone or something.
The concept of reputation is similar to the idea of reward and punishment. If you do good things, if you keep your word and if you are an organization of good character, will, and conscience, you will have a good reputation and vice versa. Good reputation is the best way to highlight characteristics from a client’s perspectives.
Importance of a good reputation
Here are some benefits of a good reputation:
- More business opportunities
- A better selection of prospective employees
- Higher company value
- Lower marketing costs
What is reputation management?
Reputation management is the effort to influence what and how people think of a brand or person when viewed online. It refers to the influencing and controlling of an individual\’s or group\’s reputation.
Essentially, reputation management is an attempt to shape public perception of a person or organization by influencing online information about that entity.
Communications managers should embrace and understand the power that branding offers in their quests toward enhancing the reputation of their organisation. It is especially important that communication managers understand that a good brand equates to a great reputation. Having a good brand is not only a prerequisite to a good reputation, but is also a vital component of reputation management.
Reputation is followed by trust. When reputation management is executed well, trust is developed. It is key that communication managers understand the correlation of a good reputation and client trust. Reputation management focuses on perceptions of each stakeholder groups. This allows the communication manager to strategise accordingly, keeping in mind that stakeholders make or break the brand.
Marketing communication has become an important tool of projecting the positive and beneficial effects of the goods and services offered by the orgnisation. Corporate communication has considerable impact on the corporate reputation of modern organisations regardless of space and time. In the light of reputation management, communication managers must structure all their efforts in line with the brand’s reputation.
Good reputation means profits and lower costs
Businesses that enjoy a high standing may not have to spend a fortune advertising and marketing as their clientele will frequently advertise their products and services via word of mouth.
Moreover, when it is endowed with a good reputation, an online business may be successful in avoiding public embarrassment. This may well reduce the company\’s legal costs, which in the case of smaller companies can prove so threatening.
Brands with a favorable reputation can also expect to see higher profits. If the public like and trust your brand, they are more likely to purchase from you over less favorable brands. A good reputation will also create a perceived value in people, which will allow you to charge more for your products.
Reviews have a big impact
Research suggests that over 80% of customers have stopped trusting advertisements. They rely on information from third-party, word-of-mouth sources to make a purchase decision. Over 90% of prospective customers will read at least a couple of online reviews before buying a product.
Close to 80% of your potential clients, trust online reviews as much as personal recommendations from friends or family. A single negative review can mean the loss of profits. This can make or break your brand, because if negative reviews are more visible than positive ones, prospects won’t trust your brand.
Competitors benefit from your bad reputation, because clients are looking for alternative products or services. It’s not unusual for rival businesses to take advantage of negative reviews by altering their marketing campaigns accordingly. This draws prospective customers away from your business, compromising profits.
Professional reputation management experts know the best techniques to improve a company’s reputation. They’ll first see if any review is deliberately inflammatory or violates Google regulations. In such situations, the cases can be reviewed and negative reviews that violate regulation can be removed.
At Magna Carta, we prioritise the public standing of your brand. Let us help you effectively manage your brand. Contact us today.