Brand reputation is a set of fixed judgments about a brand on the basis of criteria significant for the target audience (honesty, responsibility, integrity). Reputation implies an analytical approach in forming an opinion and is based on reliable knowledge and assessments. Most often, it is supported by the consumer’s own experience.
Reputation is a dynamic process in which the company’s long-term strategic objectives are realized. Reputation depends on how and by what methods the company’s business activities are carried out. It reflects the underlying economic and social characteristics of a brand.
Why is reputation important?
Reputation is equally important for every socialized object, from an individual to an international company.
According to research, more than 60% of investors consider brand reputation as one of the main drivers of brand value. Reputation can provide from 20-80% of a company’s shareholder value, representing a real asset of the company. Reputation is slow to build, but, unlike tangible assets, it is relatively stable and not subject to price fluctuations in the market.
Reputation has a significant impact on the sales performance of a brand’s products. 87% of people who shop online are sure to inquire about company reviews before purchasing a product. 73% of consumers are more willing to trust a company if the majority of reviews are positive. 80% of online shoppers cancel their order after reading a negative review about a brand. Reputation is sometimes referred to as “creditworthiness” – 62% of consumers believe that a company with a good reputation will not produce poor quality products.
At the same time, reputation is important for a company when hiring employees. Potential employees are definitely looking for information about their future employer. 67% of professionals turn down a job offer because of poor corporate brand reputation.
A good reputation of a company helps to attract new customers and retain existing ones, increase investment inflows and sales efficiency. In the long term, reputation supports the company in the face of economic difficulties at the expense of loyal customers.
Brand reputation and brand image
Quite often consumers and even brand managers equate the concept of “image” and “reputation”. In fact, image is a component of reputation and has other prerequisites for its formation.
The consumer’s acquaintance with the brand begins with interaction with the components of corporate identity – it is a means of objective positioning. When perceiving these elements, an image is formed in the human mind – it is an ideal image that is created by the brand to create a certain impression of the company in the minds of the target audience. Thus, image is an artificially created opinion among a certain group of people. Its task is to form a positive image of the brand among the audience.
Unlike image, reputation cannot be created – it must be earned. Reputation can be considered as the public’s response or reaction to the company’s policy. Reputation building takes place throughout the whole activity of a brand and works for a long-term perspective. If image depends on external characteristics, reputation depends on the holistic perception of both internal and external qualities of the brand.
What is reputation management
To effectively perform brand reputation management, a reputation strategy is developed. This program defines a set of measures for the formation of a positive reputation and mechanisms for their implementation.
Who is involved in brand reputation management
Brand managers are in charge of brand reputation management. A company may have its own or hired specialists who develop a comprehensive reputation building strategy. Chief executives of the company should be involved in the creation of the reputation strategy and its direct implementation.
Brand reputation management strategies
Building reputation through the company’s top executives and top managers
In many cases, the reputation of a company’s leader is inextricably linked to the reputation of the brand. A public leader arouses the respect of potential clients and consumers, as well as partners and employees. A recognizable person causes trust in the company, confidence in its professionalism and respect. Such a leader will serve as a strong motivation for other employees, who will also work to improve the brand reputation.
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A strong team as a basis for reputation building
This aspect of reputation management is most important for those organizations that provide various expert services or technological solutions. For example, theKoloro branding agency has several specialists working on brand creation – a project manager, a designer, a marketer, and a copywriter. All of them are responsible for different aspects of work. Productivity and quality of work are maintained through effective communication between all responsible employees.
Thorough elaboration of the company’s mission and philosophy
A brand philosophy based on core virtues helps to build an image of a responsible, decent or honest company. Over time, if reinforced with appropriate activities, the image will develop into a positive brand reputation.
Emphasizing the company’s strengths
The easiest way to manage reputation is through a brand virtue such as quality (of products or service delivery). This effectively increases the loyalty of existing customers and attracts new ones. In addition, quality is easy to verify (by tasting or analyzing) or test (by ordering a service).
Many years of experience in providing services and indicators of successful implementation of projects can be used as the company’s advantage. A big plus in favor of building a positive reputation will be the confirmation of the quality of work with certificates and participation in international competitions or exhibitions.
Financial stability can also be used as one of the components of a reputation strategy. It will help to gain the trust of investors and partners, potential employees.
Corporate social responsibility of the company
It is important to take into account not only the interests of the company, but also the interests of society – from suppliers to ordinary employees. A company’s care and concern for its employees plays an important role in building brand reputation. By voluntarily assuming responsibility for improving the quality of life of its employees and society as a whole, the brand gains additional advantages, especially against the background of inactive competitors.
The best results can be achieved by simultaneously integrating at least two or three strategies in the company. Special attention should be paid to to the development of corporate identitywhich is closely linked to the reputation of the brand. Specialists of Koloro branding agency are engaged in the development of the name, slogan, logo and other elements of corporate identity.
Reputation management technologies
The following technologies can and should be utilized to achieve the above strategies.
Organization of special events and promotions
It is a powerful tool to attract public attention. This includes organizing exhibitions, presentations, fairs, participation in conferences or seminars, competitions, holding social events.
This helps to implement several reputation management strategies at once. A public leader who confidently talks about the advantages of the brand at the conference will attract new partners and clients. A strong team of employees presented at the competition will show the company’s professionalism.
Social actions play an important role – they are the best way to show the company’s responsibility.
Every day, thousands of workers traveled from South Asia to Dubai to get jobs to support their families. The cost to call abroad was $0.91/minute, while the average wage was $6/day. Workers were unable to contact their families on a regular basis. In 2014, Coca-Cola launched the Hello Happiness Phone Booth promotion. A special machine accepted Coke bottle caps (cans cost $0.68) and provided 3 free minutes to call abroad, allowing workers to save money.
Strengthening internal corporate relations
Employees’ patriotism towards their company also contributes to a strong reputation. The following activities will help build a strong team:
- Bringing employees together to achieve one goal: the formation of shared values;
- Supporting a high level of professionalism: development of employees through trainings and seminars;
- motivation of employees and formation of corporate culture;
- Supporting a favorable atmosphere for the work of all specialists;
- mutual understanding between employees;
- introduction of elements corporate identity.
Business-to-business (B2B) communications
Interaction with partners should be based on the integrity of the fulfillment of agreements and transparency of cooperation goals. Strengthening reputation in the business environment depends on rational brand leaders and their thoughtful decisions.
Media Relations
Good press relations have a significant impact on the public’s perception of a brand. It is a good idea to hold press conferences from time to time, inviting several members of the media to attend. Good relations with the press are not as important for building a positive reputation as they are for preventing negative publicity. Therefore, journalists should be provided with the necessary information about the company’s activities in a timely manner.
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