A business’s reputation is critical to grab the attention of your target audience and retain them. It helps in building market goodwill and share. An organization’s reputation, irrespective of its industry, depends on numerous factors. It explains the company’s ethics, values, and leaders.
For instance, when a well-known celebrity or influential person gets associated with a brand as a brand ambassador or for advertising, the product, service, or brand gets to enjoy the fame and reputation of the celebrity. Consequently, it improves sales, generates more leads, and creates a buzz in the target market.
If we look at the statistics, a global executives survey revealed that nearly 63% of the respondents’ company market value is associated with the business’s reputation. 76% of the respondents asserted that they were able to avoid possible business crises due to good business goodwill in the market.
Therefore, as an entrepreneur, it is important that you learn about the factors that can affect or damage your business’s reputation. Doing so will ensure that you take appropriate action to protect your business or brand’s image. So, let’s begin!
Word Of Mouth
As you might already know, word of mouth is a great tool to promote your product or services. When the customers are happy with your service, they are very likely to talk about it with their fellow friends and family. Promoting your business at zero to low cost. On the contrary, if your customer service is poor or your products do not fulfill the promises, your customers will be dissatisfied and talk about it negatively.
Needless to say, excessive negative promotion or publicity can damage the business’s reputation severely. People will surely know about your brand but for all the wrong reasons. In order to avoid such a situation, it is recommended that you focus on providing high-quality products and services to your target audience. In case of any dispute that may lead to negative publicity, you must resolve the same on an immediate basis.
Past records of the organization, as well as its owners, employees, and leaders, speak for themselves. If the entrepreneurs are well respected in society for their good deeds and works, the people will feel glad to be associated with their organization. Likewise, if you or any person associated with your organization has a poor past record, it will damage or defame your firm. Let’s take an example for a better understanding.
Suppose you have a past criminal record of assault. In that case, the people aware of this incident can use the information to damage your business’s market value and goodwill. Here a criminal defense attorney who deals with assault charges can be your savior. The attorney will help formulate the defense strategy to resolve the case in your favor. When you have a clear record and good reputation, you have been assured about your business’s wellbeing and growth.
For the same reason, it is always recommended to conduct a background check of the employees as well as the people your business is getting associated with. It ensures that the negative reputation of any person does not affect your organization.
Did you know that 93% of consumers read online reviews before purchasing any product or service? Online reviews help build trust for the brand or products and facilitate sales. It also provides an opportunity for the customers to post their feedback to help others as well as the organization. It will help you learn about the possible discrepancies in your service and improve them immediately.
How well you respond to the reviews, especially negative ones, will play a significant role in building or defaming your business or brand. If your response is immediate and helps resolve the customer’s issue, the customer will likely stay connected to the business and may change their opinion about the firm over time.
Perhaps, it won’t be wrong to say that the online reviews and testimonials work as social proof. It impacts the customers’ psychology and helps them make a purchase decision.
How often have you heard the phrase “Employees are the backbone of an organization”? Perhaps, countless times! When a workforce of an organization is happy, they make consistent efforts to provide quality results. It also lowers the employee turnover rate significantly.
On the contrary, organizations with poor workplace environments often look for new staff and find it challenging to manage human resources. The employees who are unsatisfied with their company’s work environment and culture will share their experience with others and create a negative impression about the organization.
To avoid this situation, it is recommended to treat the company employees fairly, offer them opportunities to grow and polish their skills and create a positive work environment. The focus should be on employee benefit as it will eventually improve the business’s worth and lead to success.
The survival of every business depends on the satisfaction of its stakeholders. From investors and clients to employees and customers- every business decision must be taken for their satisfaction. Obviously, it is easier said than done. You can not keep every stakeholder happy at all times. That’s why you need to take the help of your employees.
When you encourage your employees, train them well and understand their issues, they will make efforts to accomplish the company goals and provide better customer service. When the customers are happy, they will continue interacting with your business and help generate more sales. Eventually, the revenue will increase, and that will help keep investors and clients happy. This is all interconnected, so you must make the decision accordingly.
To Sum It All Up
Building your business’s reputation takes years, even with regular efforts. On the other hand, even the slightest of mistakes can make all your efforts go down the drain. So, it would be best if you learn about the factors that can affect your business’s reputation and take timely actions to minimize or mitigate the risk.