The Benefits of a Good Online Reputation
A company's online presence has many benefits, including increased trust, improved talent, lower risk, and more profits. However, companies with good reputations tend to be trusted more and taken back when they need help.
You will only ruin your reputation over months or even years if you are careful about what you post on social media. Reputation management is an ongoing process that requires constant attention. Maintaining a good reputation may not be easy, but it's worth the effort.
Good online reputation benefits:
Here are a few reasons you should take care of your reputation.
- A good reputation helps people trust a business or person.
- Higher profits. Businesses with good customer service and reviews get more business than companies with low reviews.
- Better employees. Brands with a good reputation get better employees.
- If people see others behaving badly, they're less likely to be tempted.
- Gentler approach. Companies with similar values as their customers are more likely to overcome reputational crises more easily than those without. For example, think about Apple Computer versus Monsanto.
Now that we've given an overview of our top five benefits of a good reputation let's go through each one in detail.
A good reputation convinces people to trust you.
Brands with a good digital presence are trusted more because they've earned it through quality work. No one else will if you can't get customers to believe in your brand. Consumers rely heavily on word-of-mouth advertising, so if you can't convince them to buy your product, they'll go elsewhere where they know what they're getting. And if nobody trusts your brand, then how anyone can else?
In a recent study, we asked over 2,500 consumers what makes them trust brands and companies. We found that people tend to trust brands with a positive reputation. For example, 85% of people trust Amazon, while only 64% trust Walmart. People trust brands with good reputations because they know that the opinions of others matter, and they want to believe what other people think about a company.
The second reason why people trust brands is that they see brands as honest. When people feel they can trust something, it becomes easier to accept advice and recommendations from that source. This is especially true when brands make mistakes. A negative experience can damage a company's reputation, but when people learn that a mistake happened, they often forgive the brand and move on.
The third reason why people trust brands stem from the idea that people care about the well-being of others. People don't just trust brands; they trust brands because they understand how important it is to help others. They realize that the best way to do that is to support businesses that treat customers fairly and give back to society.
Why does a company need reputation management?
Reputation management services are one of the ways businesses can improve their online presence and increase trust with their audience. They're also great for improving customer experience and building brand loyalty.
Reputation management helps build trust by making your business more transparent in every place it appears. This includes social media profiles, online listings, and even brick-and-mortar locations.
By listening to customers online and replying to comments (both positive and negative), you are showing people you listen to queries and respond to them. You also show people that you care about what others say about your business.
Even something as simple as reposting a customer's photo on Instagram can improve your image and build trust with customers—especially if you've got a great caption to go along with it.
In addition to providing transparency, it's important to have a good review strategy. Your goal should always be to encourage positive feedback and discourage negative ones.
A 2018 study found that 91 percent of people trust online reviews just as much as personal recommendations, so having a solid review strategy is crucial.
Reputation help to increase profits
Online reputation management (ORM) is an essential part of digital marketing for small businesses because it helps improve brand awareness, boost customer satisfaction, and build trust among potential customers. A recent study found that having a positive online presence can increase sales by up to 9% per year.
The research team behind the paper analyzed data from over 2 million businesses across six industries, including retail, restaurants, hotels, financial institutions, technology, and healthcare. They discovered that each additional star rating leads to a 5% bump in annual revenues. This makes sense, given that many factors impact a business's bottom line, such as location, competition, pricing, and quality of products/services. However, what surprised the researchers was how much ORM affects revenues.
Employees join companies with a good reputation.
A recent study found that people are just as likely to choose a company based solely on the number of employee reviews it has received online. Only 20% of respondents would consider working for a brand with a 1-star review score.
So why do people care about what others think of companies? According to research by LinkedIn, over 70% of hiring managers say that they look up information about potential hires before making a decision. This includes looking into their social media profiles and reading online reviews.
And while many reviews are negative, there are some great ways you can use positive reviews to your advantage. For example, a survey of 2,500 consumers showed that nearly half of those surveyed had read a customer review within the previous six months.
This illustrates how important it is for businesses to ensure they present themselves online. A strong online presence can help you build credibility, improve your brand image, increase sales and generate leads.
Engaging with your audience is the best way to ensure that your online presence is effective. Share useful articles and responses to questions and comments left by visitors. You can demonstrate that you're approachable and responsive by providing helpful resources and answering frequently asked questions.
Lower reputation risk
Reputation risk is the chance that a negative event will occur and negatively impact a brand's reputation. Reputation risk is different from brand risk, which refers to the likelihood of losing customers due to poor product quality or customer service. Brand risk often stems from external factors such as competition, industry trends, and economic conditions. However, companies can mitigate some brand risks by improving their reputations.
Companies with good reputations typically enjoy better sales growth and lower acquisition costs. Research suggests that companies with positive reputations sell 30% more products per dollar spent on advertising. A recent study found that companies with strong reputations earned ten times more revenue over five years than those with weak ones.
Companies with strong reputational assets had fewer instances of fraud, insider trading, and bribery. Those with stronger reputations tended to perform better financially. Additionally, companies with strong reputations tend to generate more profit per employee than those with weaker ones.
Reputation directly impacts customer satisfaction and repeat business.
As a result of the high competition in the modern world, how people view a company impacts its sales and revenues. For example, companies with a good image can spend less on advertising and promotion than others.
Social media has become an important part of everyday life for most people. As a result, companies now need to be active participants in the conversation by engaging their audience through social channels.
Reputation management is more than just counteracting negative comments and creating positive ones on the internet. It's about building an image that makes a business synonymous with its core values and the primary needs of its target market. This is why businesses must have a comprehensive online reputation management plan.
Additional benefits of having a good reputation include:
A good reputation has numerous direct and indirect benefits for any organization.
- Reputation management is a way for companies to ensure they have a good first impression when people think of them. They focus on creating positive images of themselves through various channels (e.g., social media) so they don't leave an unfavorable impression on potential clients.
- An effective ORM strategy not only showcases the positives of a business but also counteracts any negative publicity from its competitors.
- An effective online reputation that builds trust increases the likelihood that cold traffic will turn into leads and sales.
- An excellent online reputation helps companies establish themselves as thought-leading experts and the go-to resource for all industry-related issues. It helps companies gain free media exposure and puts them above their competitors.
Reputation by the numbers
Here are some eye-opening statistics to clarify any doubt about the importance of having an excellent online reputation.
- Over 90 percent of consumers report that positive reviews have influenced them.
- People trust online searches more than any other media type when looking up information about people and companies.
- Over half (51%) of consumers research products online before making purchases.
- Consumers put equal importance on online reviews and word-of-mouth recommendations when purchasing decisions.
- According to a study by Forrester Consulting, 58 percent of Fortune 500 CEOs believe reputation protection should be a core part of their organization's marketing and brand strategies.
- Most marketers believe they will need to build trust to succeed in future marketing campaigns.
These statistics show that online reputation management (ORM) is the future of marketing.
Google is the new way for people to connect online.
Regarding reputation on the web, Google's first page is the new company brochure. Most people never get beyond the first page. Customers judge companies by what Google says about them online.
According to a recent survey, almost half of consumers found out about new products and services through online searches.
So, every business needs a digital marketing strategy that emphasizes its strengths and makes it appear good on Google's first pages.
Companies with effective reputation management strategies can expect to reap the beneﬁts of their efforts, including higher customer satisfaction, better employee retention, lower risk, and more profits. For more information on how you can improve yours, please visit our website today.
November 18, 2022