Not only does a good reputation increase the number of customers you attract, but it can also increase the quality of your customers. Customers are more likely to spend more money on companies that have a positive corporate reputation, and are also more likely to return for products and services in the future. Executives know the importance of the reputation of their companies. Companies with a strong and positive reputation attract better people.
They are perceived to offer more value, often allowing them to charge a premium. Your customers are more loyal and buy wider ranges of products and services. Because the market believes that these companies will generate sustained profits and future growth, they have price-benefit multiples and higher market values and lower capital costs. In addition, in an economy where between 70 and 80% of market value comes from intangible assets that are difficult to assess, such as brand value, intellectual capital and good will, organizations are especially vulnerable to anything that damages their reputation.
Therefore, we know that online reputation is important because it affects real-life behavior, such as hiring and sales. In addition, legions of potential customers, stakeholders, and employees read what people are saying about your brand online. In addition to its website, a company's reputation resides on the Internet on Wikipedia, Google search, social media platforms, online forums, review sites, news sites, and blogs. Most consumers consider customer service when they decide to do business with a company, and there's nothing like bad customer service to sink a company's reputation.
Reputation management is the process of monitoring and shaping the perception that the public and stakeholders have of an organization and its offerings. The overall reputation of a company depends on its reputation among its various stakeholders (investors, customers, suppliers, employees, regulators, politicians, non-governmental organizations and the communities in which the company operates) in specific categories (product quality, corporate governance, employee relations, customer service, intellectual capital, financial performance, management of environmental and social issues). So, if you're looking to successfully start or grow a business, you should understand the question: why is reputation important in business? If one group creates expectations that another group doesn't meet, the company's reputation can be affected. If you want to attract the best talent to take your business to the next level, your company should already have an irrefutable reputation.
Many organizations decide to establish working relationships with reputation management companies to monitor and manage their online reputation. When GlaxoSmithKline pioneered the development of antiretroviral drugs to combat AIDS, its reputation for conducting cutting-edge research and product development was reinforced and shareholders were satisfied. Second, executives tend to believe that their company has a good reputation if there is no evidence that it is bad, when in reality the company has no reputation in that area. Reputation building exists online and offline, and it can be facilitated in just about everything you do.
Having a strong reputation in the market is the best foundation for building a strong customer base, which promises stellar sales revenues. A framework for managing reputational risk Understanding the factors that determine reputational risk allows the company to take steps to address them. Fortunately, many executives now understand how their personal brand influences the company's reputation. This usually happens when a company's reputation has been seriously damaged by unjust attacks by special interest groups or by inaccurate media reporting.
