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Business reputation is the public perception of a brand, its products or services, and its treatment of employees and customers. A good reputation is beneficial to a company, but a bad reputation is damaging and potentially destructive.
That doesn't mean companies can't bounce back from negative reviews and failures. Reputation management is a tool that influences the conversation and perception about your brand or company. This is useful for image repair, but also for established and clean image management.
Related: Reputation management in an increasingly transparent world
Reputation is like currency. The better you manage it, the richer you will be. Most business leaders understand the value of public image, but are unsure how to leverage and control it. They manage tangible assets and operations better than intangible assets such as brand equity, goodwill, and intellectual capital.
Still, poor reputation management has tangible effects. Corporate and small business leaders must adhere to a proactive approach to assessing and remediating risks to avoid common pitfalls. Reputation management is an investment of time and money, but it creates a foundation for great benefits and growth.
1. Improving brand image
A brand's image is its reputation, or how it is perceived by the public. Reputation managers and companies focus on modifying or strengthening perceptions by increasing consumer retention, increasing trust through customer interactions, and developing brand advocates who promote the brand through word-of-mouth campaigns.
Brand advocacy is a key element of reputation management with a focus on transparency and authentic experiences. Many of our supporters are real customers who share positive reviews. Businesses can encourage positive reviews by reaching out to customers and asking questions. Because it seems simple.
Related: 7 Powerful Ways to Increase Brand Awareness
2. Improving customer loyalty
A positive reputation promotes consumer loyalty, also known as customer retention. People prefer to buy from companies they feel they can trust and admire. Positive emotional responses result from witnessing positive interactions and experiences, which may occur through personal use of products or services or through private and public communications.
Customer service interactions play an important role in how consumers reflect and react to your brand and business. Business leaders need to understand that brand and company reputations are built from consumer experiences with human representatives.
3. Managing negative reviews
Reputation management isn't about eliminating negative reviews. It is impossible to please everyone, so it is inevitable that you will have the occasional negative experience or review with a product or service. The goal is to treat the negative as a positive.
Brands can make concessions when warranted and should try to make something good out of a bad experience. That said, some bad reviews and complaints are invalid. Trust that your consumer base will understand through intentionally derogatory or inflammatory reviews. Part of reputation management is establishing enough positive attitudes and trust about your brand and business to overcome deliberate attacks and abuse.
Related: 5 ways to take control of online reviews
4. Attract talent
A positive reputation results in positive exposure. The more exposure a brand or business has, the more trustworthy it becomes. Potential talent makes their first impressions of potential employers based on their reputation.
Business owners and managers need to remember that talent cares about more than brand reputation. They also study its leadership. Reputation management as a corporate tool should encompass all aspects of the business, including human resources. Mistakes by executives and even lower-level supervisors and employees can impact how consumers and investors view your brand.
Related: How to attract and retain top talent
5. Creating partnership opportunities
Public profile and perceptions can influence investor and partnership relationships. Most investors and business owners understand how corrosive and contagious negative perceptions can be. Partnerships with unpopular brands and individuals are highly contagious and negatively impact the bottom line for everyone involved.
Just as negative critiques and comments influence partnership decisions, so do positive discussions and evaluations. Investors and companies want to partner with popular and positive brands. They hope that their goodwill will be conveyed and their reputations enhanced, and often that is the case.
6. Establishing a reputation for being recession resistant
Reputation management is about creating a recession-proof identity. Consumers and investors place their trust in companies that make money. Businesses can earn trust by standing behind their products and services, investing in their relationships with consumers, and providing transparency in all interactions.
Reputation management and public relations companies aim to establish communication that goes beyond transactional dialogue. Conversations about your brand should delve into emotional responses and positive interactions. Consumers need to see brands as more than just businesses. They need to start recognizing it as an ally or commercial partner, and once they do, they are usually loyal regardless of economic conditions.
Related: How to build a reputation that's a real asset to you
7. Developing pricing power
Through proper reputation management, consumer loyalty will inevitably increase, albeit on a different scale. Brand loyalty allows companies to establish pricing power, or the ability to maintain demand even as prices rise. Pricing power is essential to maintaining or increasing profits through various economic conditions.
Reputation is everything because public perception is everything. When consumers love and respect a brand, they will buy from that brand. Investors invest in a brand when they see a positive response to it. The reason to invest in reputation management is simple. The more people like you, the more people will support you.
