The positive reputation of a company increases its real value. When faced with two options, with equal product costs and quality of service, customers will choose the products or services of the company that they trust more.
What gives a company a positive reputation?
Corporate reputation strengthens consumer confidence in the quality of default products, even if they have never used that company or their products before.
The image of a company with a strong sense of social responsibility and a competent personnel policy, makes consumers more satisfied, regardless of what kind of goods or services the company provides.
A good reputation allows companies to set higher prices than competitors. Moreover, a positive reputation allows you to successfully attract investments for the development and implementation of new projects, and when reputational threats arise well thought of businesses are more likely to receive a credit of trust from consumers and incur less image or reputational losses.
The target audience who trusts the company is more prone to focus on official statements and not believe the negative information disseminated on social networks and in the media. They’re more likely to willingly believe that the situation has been taken under control and will not happen again.
Key criteria for corporate reputation
Key criteria for determining the target audience level of a company’s corporate reputation are top management and their personal reputation. Up to 50% of corporate reputation depends on the personal reputation of managers. Therefore, special attention should be paid to improving the reputation of the management team, including ensuring prompt responses to any negative news or comments.
Unlike other intangible assets, such as intellectual property, the corporate reputation does not belong to the company. This is a social asset that exists only in the minds of consumers, affecting public opinion and transforming the priorities of the target audience.
What benefit does reputation capital have for a business? There are numerous answers, including:
- Provides additional room for maneuver in the event of a threat to the image of the company.
- Increases the value of the product and the credibility of the target audience.
- Reputational capital that takes the blow in the event of a negative about the company.
How to maintain a positive corporate reputation in a crisis
No matter how the corporate reputation was created initially, it must be constantly maintained and strengthened. Otherwise, if multiple crisis situations occur – negative reviews or publications, public scandals, opposition of competitors in a public field – the company can suffer serious damage, losing the trust of the target audience.
In times of crisis in the public space, an operational, comprehensive approach to protecting the company’s reputation is a necessity and must incorporate a set of measures across three planes – legal, PR and digital.
Converting the information background from negative to positive is a task that an experienced crisis communications manager must take on, immediately. If there is no such manager, you need to contact a crisis communications agency as a matter of urgency.
To create a shield against the illegal actions of competitors, to neutralize any negative public opinion or to strengthen the positive presence of the company and its top officials in the media, you need proactive offline and digital communications about the company’s activities, with the parallel work of lawyers in the courts.
Adves reputation management specialists can put this essential plan into action quickly and confidently.